Zug, 30 July 2008
Highlights:
- Record first half production of ferrochrome, platinum, semi-soft and coking coal, refined nickel, zinc in concentrate and lead in concentrate
- Coal production recovered strongly from adverse weather conditions in Queensland, Australia and in South Africa in the first quarter, which impacted all open pit coal producers
- Electricity to South African operations continues to be restricted to 90% of normal supply, constraining production growth in ferrochrome and vanadium and, to a lesser extent, South African thermal coal
- Copper, coal, nickel and zinc production accelerated in the second quarter compared to the first quarter, with further significant volume growth expected in the second half
- A number of key growth projects were successfully completed and contributed to volume growth in key commodities, including:
- expansion of the Mount Owen coal handling and preparation plant and commissioning of the new Southstock 5-seam underground mine
- ramp up of the first phase of the Elandsfontein platinum mine and PGM concentrator in South Africa, which reached steady state production ahead of schedule
- ramp up of the low-cost Lion ferrochrome smelting complex and Bokamoso pelletising plant
- Several projects currently in execution will start to deliver growth from the second half of the year, including:
- commissioning of the Sinclair nickel mine in Western Australia and the Perseverance zinc mine in Canada
- completion of the new Liddell coal handling and preparation plant
- expansions to the Lomas Bayas copper mine and Altonorte smelter in Chile and the McArthur River Mine zinc-lead open-pit and concentrator in the Northern Territory, Australia
- ramp up of the Mount Isa zinc-lead concentrator expansion to increase annual capacity to 8 million tonnes and augment metal production by 30% year-on-year
- continued ramp up of the 32 million tonnes per annum expansion to Cerrejón coal mine in Colombia
- Successful integration of the recently acquired Resource Pacific, Jubilee and Tahmoor operations contributed to first half production growth and will provide meaningful future growth
- Significantly stronger second half performance expected across the portfolio on the back of higher grades at a number of copper and nickel operations, the resolution of one-off operational issues and the contribution of recently acquired and newly commissioned operations.
Please click here to view full announcement
Xstrata contacts:
| Investors & analysts | |||
| Claire Divver | Hanré Rossouw | |||
| Telephone | +44 20 7968 2871 | Telephone | +44 20 7968 2820 | |
| Mobile | +44 7785 964 340 | Mobile | +44 7879 455 885 | |
| Email | cdivver@xstrata.com | Email | hrossouw@xstrata.com | |
| Pamela Bell | ||||
| Telephone | +44 20 7968 2822 | |||
| Mobile | +44 7799 626715 | |||
| Email | pbell@xstrata.com | |||
Notes to editors
About Xstrata plc
Xstrata is a global diversified mining group, listed on the London and Swiss Stock Exchanges, with its headquarters in Zug, Switzerland. Xstrata’s businesses maintain a meaningful position in seven major international commodity markets: copper, coking coal, thermal coal, ferrochrome, nickel, vanadium and zinc, with additional exposures to platinum group metals, gold, cobalt, lead and silver, recycling facilities and a suite of global technology products, 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, New Caledonia, Norway, Papua New Guinea, Peru, the Philippines, South Africa, Spain, Tanzania, the USA and the UK. Xstrata employs approximately 56,000 people, including contractors.