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Xstrata Zinc: Mount Isa Mines Zinc Lead Concentrator (PDF)

Madrid, 1 October 2007

A fire in the conveyor system to the Heavy Medium Plant at Xstrata Zinc's Mount Isa zinc-lead concentrator on Friday 28 September resulted in property damage and an interruption to operations. The fire originated at a redundant sampler chute that was in the process of being removed from a conveyor circuit, as part of the ongoing expansion of the concentrator capacity to 8 million tonnes per annum. The fire was rapidly extinguished and there were no injuries to any mine employees.

The zinc-lead concentrator recommenced operations the same day but will operate at a reduced capacity until repairs are completed. It is estimated at this early stage that repairs will take between 4 to 6 weeks, impacting approximately 25,000 to 30,000 tonnes of zinc metal and 15,000 to 20,000 tonnes of lead. The incident is covered by an insurance policy and is not expected to result in any material impact on Xstrata’s earnings.

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Xstrata contacts

Claire Divver
Telephone +44 20 7968 2871
Mobile +44 7785 964340
Email cdivver@xstrata.com

About Xstrata Zinc

Headquartered in Madrid, Spain, Xstrata Zinc is one of the world’s largest producers of zinc and one of the commodity business units within the major global diversified mining group Xstrata plc. Xstrata’s zinc and lead operations and exploration projects are located in Australia, Canada, Germany, Peru, Spain and the United Kingdom. Xstrata Zinc’s operations in Spain comprise the San Juan de Nieva zinc smelter and the Arnao zinc semis plant in Asturias, and the Hinojedo roasting plant in Cantabria.

In Australia, operations comprise the Mount Isa, George Fisher underground and Black Star open cut zinc lead mines, zinc lead concentrator, lead smelter and Bowen Coke Works in north Queensland; 75% of the Lady Loretta zinc lead deposit in north-west Queensland; the McArthur River open pit zinc lead mine, processing and port operations in the Northern Territory; and 50% of the Lennard Shelf underground zinc lead mine and processing operations in Western Australia.

In Canada, operations and exploration projects include the Brunswick zinc-lead mine and lead smelter in New Brunswick; 25% of the CEZ zinc smelter near Montreal; and the Perseverance zinc deposit in Quebec.

Xstrata Zinc also operates the Nordenham zinc smelter in northern Germany; the Northfleet lead refinery in the United Kingdom; and owns 33.75% of the Antamina
mine in Peru.