Xstrata is a major global diversified mining group, listed on the London and Swiss stock exchanges and headquartered in Zug, Switzerland. Xstrata maintains a meaningful position in seven major international commodity markets: copper, coking coal, thermal coal, ferrochrome, nickel, vanadium and zinc, with a smaller but profitable aluminium business, recycling facilities, additional exposures to gold, lead, cobalt and silver and a suite of global minerals and metals processing technologies. Xstrata’s operations and projects span 19 countries and employ over 43,000 people, including contractors.
Xstrata’s activities are organised into six global commodity businesses and a technology business, each of which operates with a high level of autonomy.
Xstrata Alloys is the world’s largest producer of ferrochrome and a leading producer of primary vanadium. Xstrata Alloys also owns carbon and anthracite operations which supply key raw materials to its ferrochrome smelters and an interest in a joint venture platinum group metals mine and concentrator.
Xstrata Aluminum operations include a US-based primary aluminium smelter, supplied by an alumina plant in the US and a bauxite mine in Jamaica (both 50% owned), together with Norandal, a fabricated products business comprising four modern rolling mills in the south-eastern USA.
Xstrata Coal is the world’s largest exporter of thermal coal and a significant producer of premium quality hard coking coal and semi-soft coal. Headquartered in Sydney, Australia, Xstrata Coal has interests in over 30 operating coal mines in Australia, South Africa and Colombia and an exploration project in Nova Scotia, Canada.
Xstrata Copper is the fourth largest global copper producer, with mining and processing facilities located in Australia, Chile, Peru, Argentina and Canada. It also manages a recycling business (Noranda Recycling) with plants in the USA and Asia. Xstrata Copper’s world-leading portfolio of growth projects includes Las Bambas in Peru, Tampakan in the Philippines, El Morro in Chile, El Pachòn in Argentina and Frieda River in Papua New Guinea.
Xstrata Nickel, headquartered in Toronto, Canada, is the fourth largest global nickel producer and one of the world’s largest producers of cobalt. Xstrata Nickel’s operations include five mines and processing facilities in Canada, a ferronickel mine and processing facility in the Dominican Republic and a refinery in Norway. Xstrata Nickel’s promising portfolio of growth projects includes Nickel Rim South in Canada, Kabanga in Tanzania, and Koniambo in New Caledonia.
Xstrata Zinc is one of the world’s largest miners and producers of zinc. Xstrata Zinc’s operations span Spain, Germany, Australia, the UK and Canada, with an interest in the Antamina copper-zinc mine in Peru. Xstrata Zinc’s growth projects include interests in the Lady Loretta deposit in Queensland, Australia, and the Perseverance zinc deposit in Quebec, Canada.
Xstrata Technology develops, markets and supports technologies for the global mining, mineral processing and metals extraction industries. These include the ISA PROCESSTM, ISASMELTTM, IsaMillTM, Jameson Cell and Albion Process technologies, which are successfully marketed globally to major mining companies and used at a number of Xstrata’s own operations to improve efficiency and reduce operating costs.
Highlights
- Three major acquisitions completed in 2006, Cerrejón coal, Tintaya copper and Falconbridge Limited, transforming Xstrata and creating an exceptional range of organic growth options
- Investment grade credit rating maintained following cash acquisitions of $19.6 billion. Gearing ratio of 41% at year end and pro forma operating cash flow of $9.4 billion
- Falconbridge integration successfully completed at year end, with annual synergies of $545 million confirmed. Work continues to unlock further synergies from the Sudbury basin, in partnership with CVRD
- Prices for key mining inputs continued to climb in 2006, in particular for labour, mining consumables and equipment
- Real cost savings of $56 million achieved by former Xstrata businesses, in a challenging environment
- Increased resources confirmed at Wandoan (thermal coal), Mount Isa, Alumbrera, Antapaccay, Las Bambas and Tampakan (copper), Raglan, Kabanga and Araguaia (nickel)
- New projects commissioned on time and on budget at Rolleston thermal coal, Lion ferrochrome, Wollombi coking coal, Mototolo PGM and Lennard Shelf zinc-lead
All data is provided on a pro forma basis, including the acquisitions made in 2006 from 01.01.05 and 01.01.06.
