Xstrata Technology wins contract to upgrade Southern Peru Copper smelter

Zug, Wednesday 23 July 2003

Xstrata Technology, a business unit of Xstrata plc, has signed a letter of intent with Southern Peru Copper Corporation ("SPCC") awarding Xstrata Technology and Fluor a basic engineering contract for modernization of the Ilo copper smelter in southern Peru. The project will utilise Xstrata's proprietary ISASMELT technology to process 1.2 million tonnes of copper concentrate per year while satisfying environmental regulations.

Pyrometallurgy Business Manager of Xstrata Technology, Philip Arthur said: "For some years SPCC have been assessing their option to modernise the Ilo plant with the aim of reducing operating costs and improving environmental performance. Recent successes at Mount Isa and other ISASMELT plants around the world have convinced SPCC that ISASMELT is the preferred technology. ISASMELT's unique attributes enable low environmental emissions while minimising capital and operating costs."

Xstrata Technology is a business unit of the Xstrata Group based in Brisbane. The business unit is charged with the development and marketing of the following leading technologies:

• IsaProcess - copper electrorefining and electrowinning technology
• ISASMELT - submerged lance smelting technology
• IsaMill - Ultra fine grinding technology
• Jameson Cell - mineral flotation technology
• BBOC - bottom blown oxygen converter for lead and silver refining
• Frothermiser - innovative air phase flotation frother technology

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Xstrata contacts:

Brigitte Mattenberger
Telephone + 41 41 726 6071
Mobile + 41 79 381 1823
Email bmattenberger@xstrata.com