NEWS RELEASE

Zug, 1 June 2003

Xstrata plc has noted the statement released by MIM MD Vince Gauci yesterday. Commenting on the issues raised, Marc Gonsalves, Xstrata's General Manager Corporate Affairs said, "Vince Gauci has made a lot of the fact that MIM's share price traded up to $1.75 per share during intra-day trading over three years ago as part of his defence of the company. The fact is that MIM's shares have not closed above $1.72 for nearly six years and, in the period since 10 January 2000 until the announcement that the parties were in discussions in November 2002, the MIM share price has averaged $1.14 per share."

"Of course, even accounting for changes in the Australian dollar, when the MIM share price last closed above $1.72, the zinc price was around 49% higher and the copper price 28% higher than they are today."

"Mr Gauci emphasises the fact that analysts have valued the Rolleston project at an average value of 14 cents per share. He fails to mention, however, that the median valuation of the whole of MIM by the same analysts is $1.67 per share, which is below our offer price."

"The bottom line is that our cash offer of $1.72 provides MIM shareholders with financial certainty and represents a substantial premium over the pre-bid share price. We agree with the view of the independent expert that, in the absence of another offer, MIM's share price is likely to decline significantly if the Scheme is rejected."

"We strongly encourage all MIM shareholders to vote in favour of the scheme of arrangement, and urge them to do so immediately as their proxies have to be received by MIM by 10am this Wednesday."

ends

Xstrata contacts

Marc Gonsalves
Telephone: +44 20 7968 2812
Mobile (Aus): +61 438 658 891
Mobile (UK): +44 7775 662 348
Email: mgonsalves@xstrata.com

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