AUSTRALIAN TREASURER APPROVES XSTRATA PLC’S OFFER TO ACQUIRE MIM

Zug, 28 May 2003

Xstrata plc (Xstrata) announces that it has received confirmation from the Australian Treasurer that he has no objection to a proposal for Xstrata to acquire all of the issued share capital of M.I.M Holdings Limited (MIM). The Treasurer said, “Under the Foreign Acquisitions and Takeovers Act, proposals will be approved unless contrary to the national interest.”

The approval from the Australian Treasurer follows approval already received from Xstrata’s shareholders and regulatory clearances from the European Union and the Australian Consumer and Competition Commission. The successful conclusion of the acquisition rests on the approval of the Scheme of Arrangement by MIM shareholders at an extraordinary general meeting on Friday 6 June 2003 and subsequent Court approval.

Mick Davis, Chief Executive of Xstrata, said he was pleased to receive approval from the Treasurer. “This approval brings our goal of creating an exciting, dynamic mining group one step closer.”

“However, for Xstrata to leverage its financial strength to grow MIM and for shareholders to receive their $1.72 per share, it is absolutely crucial that MIM shareholders vote on the Scheme, either by lodging their proxy form with MIM or attending the Scheme meeting. The Scheme of Arrangement gives every shareholder the opportunity to have their say and it is important that the majority is truly represented. I urge every MIM shareholder to vote today, or the Scheme could be voted down by shareholders with a minority of shares.”

ends

Xstrata contacts

Marc Gonsalves
Telephone: +44 20 7968 2812
Mobile: +44 7775 662 348
Email: mgonsalves@xstrata.com

Justine Winn
Telephone: +61 2 9253 6748
Mobile: +61 416 196 403
Email: justine.winn@xstratacoal.com

Brigitte Mattenberger
Telephone: +41 41 726 6071
Mobile: +41 793 811 823
Email: bmattenberger@xstrata.com

Michael Oke
Prospero Financial
Telephone: +44 20 7898 9394
Mobile: +44 7778 469630