Xstrata Technology

Xstrata Technology had another strong year in 2006, reflecting both high industry project demand, and the continued market growth of its energy efficient technologies. Sales increased for each product within the Xstrata Technology group, boosting revenue by 55% to $120 million and EBIT increased to $22 million.

Albion Process™

Xstrata Technology has continued to work with Core Resources to market the Albion Process atmospheric leach technology commercially. A second Albion Process Technology licence was issued to Deva Gold Ltd to treat a gold-bearing pyrite concentrate from the Certej project in Romania. There was strong demand for Albion Process testwork, with 11 new work programmes initiated in 2006.

The non-core Hydrometallurgy Research Laboratories were sold to Core Resources in November 2006.

ISAMILL™

The IsaMILL continued to establish itself as a revolutionary new grinding technology. Installations were completed for Phelps Dodge and Anglo Platinum, and new orders received from five different companies in Australia, South Africa, Canada, New Zealand and Laos. This technology is significantly increasing the energy efficiency of minerals processing in a wide range of applications, and is expected to continue to achieve good growth as the product becomes established across a range of markets.

ISASMELT™

The ISASMELT business continued to increase sales, with new projects won in Kazakhstan (two smelters), China, Zambia and Peru, the commissioning of the Mopani smelter in Zambia, and the commissioning of Southern Peru’s ILO smelter in early 2007. ISASMELT has established itself as the new standard copper smelting process due to its low cost, high efficiency, and record of rapid plant start-ups, which results from the comprehensive technical transfer model used by Xstrata Technology. ISASMELT plants will be treating over six million tonnes per annum of copper feed materials early in 2007. The Vedanta ISASMELT at Tuticorin in India exceeded its design capacity of 300,000 tonnes per annum of copper during the year, and is often reported to be the world’s lowest cost copper smelter.

IsaMILL™ installation at Xstrata’s McArthur River mine, Australia

LME grade A copper produced using ISAPROCESSTM

Jameson Cell™

The Jameson Cell high intensity flotation machine continued to achieve strong take-up for coal operations, especially in Australia and China. The product was also successful in penetrating base metals markets, where it can provide low cost circuit expansions or efficiency improvements. A large cell was commissioned for Zinifex at Century, and another installed for Teck Cominco at Red Dog in Alaska for commissioning in 2007.

Tankhouse Technology (including ISAPROCESS™)

The group recorded its most successful year, delivering expansion, conversion and equipment supply projects to meet the high demand to increase world refined copper capacity.

Major refinery conversion projects were completed at Saganoseki and Tamano in Japan. Other major projects during the year included the Pasar refinery conversion/expansion in the Philippines, Piedras Verdes design and equipment supply in Mexico, cathode plate supply to Guixi tankhouse expansion in China, Nkana Cobalt technology and equipment supply in Zambia, design services to the Kazzinc project in Kazakhstan.

In August, Xstrata acquired the Kidd Process technology group as part of the acquisition of Falconbridge Limited. By combining the strengths of both technologies, Xstrata Tankhouse Technology Group now offers greater depth of tankhouse design, equipment selection, start-up and commissioning services. The order book for 2007/2008 is already heavily committed with major projects in China, Africa, Eastern Europe, USA, Brazil, Chile and Kazakhstan.