Suspension of Production at Vantech

Rustenburg, Monday 10 November 2003

Xstrata Alloys proposes to suspend production at its Vantech vanadium production plant from 1 January 2004. The current ore body at Vantech has reached the end of its natural life, and continued production would depend on the development of the Steelpoortdrift ore body. However, development of the Steelpoortdrift project has been deferred given the ongoing weakness in the vanadium price and the current strength of the South African Rand.

Putting the plant onto a Care and Maintenance programme from 1 January 2004 would necessitate retrenchments at Vantech, and a process of consultation and discussion is therefore underway with affected staff and employee representatives.

As a consequence of the suspension, total annual production capacity of vanadium pentoxide (V2O5 ) by Xstrata Alloys will reduce by some 13,5 million pounds.

ends

Xstrata contacts

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

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

Notes to Editors

Xstrata Alloys is one of the world's largest producers of vanadium, with saleable production of 41.3 million pounds of V2O5 and 6,458 kt of ferrovandium in 2002. The Vantech plant employs 145 staff and is situated in the Steelpoort area in Mpumalanga Province, South Africa. It is expected to produce some 10 million pounds of V2O5 in 2003.