News Releases

Xstrata Copper News Release: Xstrata Copper Chief Executive Charlie Sartain will manage copper operations in Chile

Santiago, 5 September 2006

In his role as Xstrata Copper Chief Executive, Charlie Sartain will take up management of Lomas Bayas operations, the Alto Norte smelter and the company´s share in Doña Inés de Collahuasi mining operations.

Sartain announced that divisional offices will soon be opened by Xstrata Copper in North Chile with a view to get closer to the operations and establish a new Xstrata Copper division.

Following Xstrata plc gaining full control of Falconbridge assets, Xstrata Copper Chief Executive Charlie Sartain announced that he will manage the Chilean copper business, including Lomas Bayas mining operations, the Alto Norte smelter and the company´s 44% share in Doña Inés de Collahuasi operations.

Moreover, in an effort to get closer to the operations, Sartain announced that divisional offices would soon be opened by Xstrata Copper in Antofagasta.

“Mining operations in Chile are a significant part of Xstrata´s current copper business. Indeed, these assets have been one of the key incentives for Xstrata to invest in Chile,” he said.

Charlie Sartain, who has now taken up Fernando Porcile´s former role – Porcile is now acting as Sartain´s direct advisor – explained that Xstrata is integrating Falconbridge´s assets worldwide. This is a thorough process that will take some months to complete.

Xstrata Copper’s mining operations span five countries and comprise mines, mineral processing plants and port facilities in north Queensland, Australia; mining and processing operations and port facilities in Chile, Peru and Argentina in South America; and mining and processing plants in Canada.

“We are evaluating the individual operations now under Xstrata´s control. We have already contacted employees, management, union leaders and the teams from the various companies and we have found them to be extraordinarily professional. Not surprisingly, Falconbridge was especially attractive to us. These studies are being completed with a view to maximise synergies and initiatives that support the increased efficiency of our operations,” said Mr. Sartain.

Mr Sartain reported that he was optimistic and highly satisfied with the outcome of the integration process to date. ”We are very happy with the development of the integration process to date. The initial results are expected in the short to medium term.”

About Xstrata Copper’s Chief Executive

Charlie Sartain was appointed as Chief Executive, Xstrata Copper in January 2004, following the creation of Xstrata Copper, a global business unit within the Xstrata Group. Sartain is also a member of Xstrata´s Executive Committee.

He previously worked in a number of MIM mines and operations in Australia for over 20 years. By mid 2000, he was appointed as CEO of Minera Alumbrera Ltda. (Argentina) to lead a transformation plan at the copper-gold operation.

Sartain is also a director of the Council on Australia - Latin America Relations, a director of the International Copper Association (ICA) and a director of the Sustainable Minerals Institute at the University of Queensland.

Xstrata

Xstrata is a major global diversified mining group, listed on the London and Swiss stock exchanges. Headquartered in Zug, Switzerland, Xstrata maintains a meaningful position in seven major international commodity markets: copper, coking coal, thermal coal, ferrochrome, nickel, vanadium and zinc, with a smaller but profitable aluminium business, recycling facilities, additional exposures to gold, lead and silver and a suite of global technologies, many of which are industry leaders. The Group's operations and projects span 18 countries: Argentina, Australia, Brazil, Canada, Chile, Colombia, the Dominican Republic, Germany, Jamaica, New Caledonia, Norway, Papua New Guinea, Peru, South Africa, Spain, Tanzania, the USA and the UK.

Xstrata Copper is headquartered in Brisbane, Australia, with regional offices in Santiago, Chile; Lima, Peru; Buenos Aires, Argentina; and Toronto, Canada, and is one of the commodity business units within the major global diversified mining group Xstrata plc.

Xstrata Copper’s mining operations span five countries and comprise mines, mineral processing plants and port facilities in North Queensland, Australia; mining and processing operations and port facilities in Chile, Peru and Argentina in South America; and mining and processing plants in Canada. It also has a recycling business (Noranda Recycling) with plants in Canada, the United States and Asia.

Xstrata Copper is the third largest global copper producer, with annual managed production of over one million tonnes.

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Contacts

Gonzalo Huerta
Extend Comunicaciones S.A.
Telephone : +56 2 437 77 00
Email : ghuerta@extend.cl

Alejandro Bascur
Extend Comunicaciones S.A.
Telephone: +562 437 77 00
Email: abascur@extend.cl