Significant contractual arrangements

Glencore International AG is Xstrata’s major shareholder and, at the date of this document holds 34.45% of Xstrata’s issued share capital. The relationship between Xstrata and Glencore is regulated by a Relationship Agreement which ensures that all commercial arrangements are transacted on an arm’s-length basis. Glencore is the sole distributor of Xstrata nickel, cobalt and ferronickel production, has sales agreements with Xstrata Copper for substantial amounts of its copper concentrate and copper cathode and is the marketing agent for much of Xstrata Alloys’ ferrochrome and vanadium. Glencore has a market advisory role with Xstrata Coal. Full details of related party contractual arrangements are provided in note 36 of Group financial statements.