XSTRATA COAL INCREASES ITS STAKE IN THE GLENDELL PROJECT TO 100%

Zug, I July 2003

Xstrata plc (“Xstrata”) announces that Xstrata Coal has increased its share in the Glendell Project from 67.5% to full ownership of 100%, with the purchase, for AUD17.75 million, of 32.5% from Mitsui Matsushima Australia Pty Limited.

The transaction will have no impact on Xstrata’s consolidated revenue or EBIT as Glendell is a non-operational project, located in the Hunter Coalfields of New South Wales. Xstrata Coal now has 100% ownership in contiguous property and mining leases, which embrace Mt Owen, Ravensworth East and Glendell. This will provide opportunity to optimise resource recovery, and enable efficient utilisation of capital employed with the shared use of existing major infrastructure.

The commencement date for the project, which has an estimated potential saleable production of 2.5 million tonnes per annum, has not yet been announced.

ends

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Marc Gonsalves
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Email mgonsalves@xstrata.com

Brigitte Mattenberger
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Justine Winn
Telephone +61 2 9253 6748
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Email jwinn@xstratacoal.com

Michael Oke & Claire Bithell
Prospero Financial
Telephone +44 20 7898 9394/9387
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