Xstrata Technology Services

Xstrata Technology Services supports the processes involved in mining. It comprises Xstrata Technology, based in Brisbane, a specialist technology solutions provider and Xstrata Process Support, based in Sudbury, an independent group which provide highly specialised technological support both to Xstrata’s operations and to third-party customers.

Xstrata Technology

Xstrata Technology experienced strong demand for its technology solutions products during most of 2008, although deteriorating economic conditions resulted in a decline in EBIT by 26% due to the deferral of a number of projects following the sudden shortage of funding experienced by some customers following the onset of the credit crisis.

Xstrata Technology’s IsaMill™ division grew during 2008 as its technology was adapted for mainstream grinding applications. Orders were received from Australia, Europe, USA, Mexico and South Africa, with most of the mills to be commissioned in 2009. During the year, four new ISASMELT™ furnaces were designed, including the first Isaconvert™ furnace for Mopani Copper Mines in Zambia. This furnace will improve the environmental performance and efficiency of copper smelting compared with conventional converter technology.

Xstrata Process Support

Xstrata Process Support provides high expertise technical services to the minerals sector and demand for its services from Xstrata’s operations continues to be strong. EBIT remained stable in 2008. External customers accounted for 25% of total revenue, an increase on the 10% achieved in 2007.

In 2008, the Process Mineralogy group provided ore characterisation and process design services to Xstrata Nickel in Canada and Xstrata Copper in Australia. The Process Mineralogy group has seen strong demand growth from Xstrata’s PGM operations and external customers who are seeking to improve the characterisation of their ore bodies. The Extractive Metallurgy group experienced strong demand in 2008 for its process modelling expertise from both internal and external clients, including Xstrata Nickel, for which it is developing processes for new ore bodies. During 2008, the Process Control group delivered improved control of the primary grinding circuit at Sudbury nickel operations and designed and commissioned the control systems for a major expansion of nickel recycling capacity. It contributed to control improvements at Kidd copper operations and is a member of the standard concentrator design team for Xstrata Copper.