Market
An overview of the markets in which we operate and our competitive environment.
Key points
- Government-led fiscal and economic stimulus initiatives were of a scale not previously seen
- Subdued demand from OECD nations for commodities was partially offset by continued demand from industrialising countries
- The downturn highlighted China’s position as a dominant commodity consumer
- Encouraging medium-term outlook for Xstrata’s products underpins Xstrata’s strategy of delivering substantial volume growth from its organic growth pipeline
Core strategy
Our core strategy is to create value through growth and asset improvement for our owners in a sustainable manner.
Key points
- Our decentralised management model gives maximum responsibility and accountability to our commodity businesses, within a defined governance structure
- An attractive portfolio of assets that are diversified through location and product
- A world-class sustainable framework which governs our businesses in achieving our aim for industry-leading health, safety and environmental performance and stakeholder engagement
Key performance indicators
Xstrata’s Executive Committee and Board measure progress against strategy by monitoring a range of financial and non-financial KPIs.
Key points
- Real cost savings of $501 million achieved, representing 5% of Xstrata’s operating base
- Year-on-year improvements in injury frequency rates
- Direct and indirect greenhouse gas emissions fell by 10% and 7% respectively
Risks
We regularly review and publicly report the principal risks and uncertainties which may affect our ability to deliver our strategy effectively, the potential impact on our business and the controls in place to mitigate these risks.
Key points
- A value-driven approach to risk management and a structured and comprehensive risk management system has been implemented across the Group
- Each business and corporate function undertakes a comprehensive annual risk review as part of an ongoing process for identifying, evaluating and managing significant risks
- Sustainable development risks are assessed, evaluated, mitigated or managed at every stage of an operation’s lifecycle
