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Xstrata Coal News Release: Xstrata Coal announces commencement of Glendell open cut

Sydney, 11 March 2008

Xstrata Coal today announced its Glendell open cut operation will commence within the month, having received approval from the New South Wales Department of Planning for the mine’s modification.

Under the terms of the consent modification, Xstrata Coal intends to increase the maximum rate of run of mine (ROM) coal production of Glendell from 3.6 million tonnes per year to 4.5 million tonnes per year.

Xstrata Coal NSW Chief Operating Officer, Mick Buffier, said the Company’s total investment of $290M into Glendell will directly create up to 100 construction and 150 operational jobs over the life of the operation and contribute additional benefits to the local and state economies through employment and other revenue.

“Through our continued investment into the development of new operations, Xstrata Coal is playing an important role in providing new employment and local business opportunities within the Hunter Valley.

“Glendell will contribute to the ongoing viability of Xstrata Coal’s Mt Owen complex and improve the efficiency of coal production in the area by sharing established coal processing and transportation infrastructure with existing operations.”

Xstrata Coal will appoint a contractor to open up a box cut on site within the coming weeks. The box cut is the first step in the commencement of operations.

As part of the consent modification, Xstrata Coal will implement a thorough and systematic environmental management process to address the key issues of greenhouse gas and energy conservation, air quality, noise and vibration, water resources, and flora and fauna.

Glendell Mine is an approved open cut coal mine located at Hebden in the Upper Hunter Valley of New South Wales approximately 25 kilometres northwest of Singleton, 26 kilometres southeast of Muswellbrook and 2 kilometres north of Camberwell Village.

END

For further media information:
James Rickards
Communications Manager
Phone: 02 9253 6789
Mobile: 0419 731 371
Email: jrickards@xstratacoal.com