“Our near-term growth projects will increase volumes by 50% and reduce costs by around 20% by the end of 2014”
Strategy to deliver growth and value
Strong growth pipeline (% complete)
Completed 2010
Completion due 2011-2015
Approved 2010
Near-term approval
Early-stage
Xstrata’s commodity businesses benefit from a broad range of growth projects which have been progressed through the various stages from exploration to conceptual planning to pre-feasibility and feasibility studies over the past several years.
Organic growth has always been an important part of the Group’s strategy. Since our inception in 2002, Xstrata’s commodity businesses have successfully delivered 14 new or expanded mines.
In 2010, three major projects were commissioned: Goedgevonden and Blakefield South coal mines, and Nickel Rim South. Ten growth projects with capital expenditure of $10 billion were approved.
Xstrata is now entering the most active phase of its organic growth programme. Currently, 20 major expansions or new mines are in construction, representing a total capital expenditure of $18 billion, of which $18 billion remains to be spent.
By the end of 2014, the Group’s organic growth projects will increase volumes by 50% on 2009 levels and deliver a 20% reduction in average operating costs.
