XTA | Press Room

Xstrata Alloys: Ferrochrome Capacity Utilisation

Wed, 08 Jul 2009 18:00:43 +0100

Rustenburg, 8 July 2009

In response to a strengthening in demand for ferrochrome, the Xstrata-Merafe Chrome Venture has increased capacity utilisation for 2009 to 60%. For this purpose, several furnaces at the Venture’s five ferrochrome operations have been re-commissioned.

Ferrochrome demand is being monitored on a continuous basis and capacity utilisation will be adjusted in line with such variations in demand.

Ends

Xstrata Contacts

Songezo Zibi
Telephone +27 11 250 0064
Mobile +27 82 303 8176
Email szibi@xstrata.co.za

Xstrata Copper and Zinc: Phase One (Land) report of Mount Isa Lead Pathways Study released

Wed, 08 Jul 2009 12:00:00 +0100

Mount Isa, 8 July 2009

Xstrata Mount Isa Mines today released the Lead Pathways Study Phase One (Land) report at its community information session in Mount Isa.

The report has been prepared by the University of Queensland’s Centre for Mined Land Rehabilitation (CMLR), in collaboration with the National Research Centre for Environmental Toxicology (EnTox), following a comprehensive peer review process.

Associate Professor Barry Noller (CMLR) who heads the Lead Pathways Study said the Phase One investigations had focused on areas known to have been previously impacted by historical mine sediments including the Leichhardt River and surrounding area.

“Our investigations have confirmed that the risk to human health from historical mine sediments within the Leichhardt River area is low,” he said.

Even though the CMLR identified the potential risk to human health to be minimal in its preliminary findings released publicly in late 2007, Xstrata Mount Isa Mines undertook further remediation works of the Leichhardt River in mid-2008.

Chief Operating Officer, Xstrata Copper North Queensland, Steve de Kruijff, said Xstrata commissioned the Lead Pathways Study and undertook further remediation works as part of its ongoing commitment to the health and safety of the Mount Isa community.

“While the preliminary findings indicated that there was a low risk to human health we made the decision to undertake further remediation works of the Leichhardt River, at a cost of around $1.5 million,” Mr de Kruijff said.

“More than 120,000 tonnes of material was removed from the area and safely disposed of on the Xstrata Mount Isa Mines lease.

“The study is ongoing and we will continue to conduct sampling of the area after each wet season until 2011 and further remediation work will be undertaken if required.

“We are committed to this study and we will act on the CMLR’s recommendations and continue to keep the Mount Isa community informed of the study’s progress.”

The CMLR will continue to assess potential pathways of lead into the Mount Isa community and any associated risk to human and ecological health through Phases Two (Air) and Three (Water).

“As part of Phase Two we are investigating potential sources of dust in the community, their signatures in terms of lead make-up and any potential risk to human health,” Associate Professor Noller said.

“Samples are being analysed using cutting-edge synchrotron technology, located in Japan, and we are currently collecting additional samples from within the community and from the mine site for further testing in late 2009.

“We are also investigating the water quality of the Leichhardt River and its tributaries and we are currently analysing samples collected prior to, during, and post the 2008/09 wet season.

“The Lead Pathways Study is a comprehensive and highly complex research program and we are pleased to be undertaking such an exciting project.

“The successful application of these innovative technologies for human and environmental risk assessment purposes has significant implications for the scientific community and the mining industry as a valuable risk assessment tool.”

Ends

Xstrata Contacts

Sue Sara
General Manager Corporate Affairs Queensland
Xstrata Copper
Telephone +61 7 3295 7535
Mobile +61 7 411 206 090
Email suesara@xstrata.com.au

Melanie Edgar
Manager Community Relations NQ
Telephone +61 7 4744 2832
Mobile +61 7 423 820 701
Email medgar@xstratacopper.com.au

ww.xstrata.com

ABOUT THE LEAD PATHWAYS STUDY

The Lead Pathways Study is a comprehensive research program being undertaken by the University of Queensland’s Centre for Mined Land Rehabilitation (CMLR), in collaboration with the National Research Centre of Environmental Toxicology.

Commissioned by Xstrata Mount Isa Mines in late 2006, the independent study is assessing potential pathways of lead into the Mount Isa community and any associated risk to human and ecological health. The study is being undertaken is being undertaken in three phases – land, air and water - and all three phases will be independently peer reviewed.

The Lead Pathways Study Phase One (Land) scientific report and summary report are available online at http://www.xstrata.com/operation/mountisa/publications/

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 a growing platinum group metals business, additional exposures to 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 19 countries.

ABOUT XSTRATA COPPER

Headquartered in Brisbane, Xstrata Copper is one of the commodity business units within the major global diversified mining group Xstrata plc. Its operations and projects span eight countries: Australia, Argentina, Chile, Peru, Canada, the USA, the Philippines and Papua New Guinea. Its operations are administered by five separate divisions, based close to the mining operations, namely the North Queensland, Minera Alumbrera, North Chile, Southern Peru and Canada divisions. It also has a recycling business (Xstrata Recycling) with plants in the United States and offices in Canada and Asia.

Xstrata Copper is the fourth largest global copper producer with annual attributable production capacity of over one million tonnes.

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.

Around half of all zinc currently consumed is used for galvanizing steel, which is an environmentally friendly method of protecting steel against corrosion. Zinc also finds application in the manufacture of die-cast alloys, brass and the production of zinc oxides and chemicals.

Xstrata Nickel’s Raglan Mine welcomes the Québec Government’s Mineral Strategy

Tue, 07 Jul 2009 15:00:03 +0100

Rouyn-Noranda, Québec, July 7, 2009

Xstrata Nickel’s Raglan Mine welcomes the initiative taken by the Minister for Natural Resources and Wildlife, Serge Simard, in unveiling Québec’s first mineral strategy last week.

This strategy introduces the main policy directions that will profoundly modify the mining regime in Québec and bring it into line with international standards for sustainable development.

“Québec already ranks among the best jurisdictions in the world for the mining sector. This strategy has the potential to strengthen Québec’s already enviable position and could help ensure the sustainability of mining for future generations,” noted Michel Boucher, General Manager of Xstrata Nickel’s Raglan mine located in Nunavik. “We are confident that the Government of Québec will be able to implement measures quickly to achieve these objectives once it has consulted communities, the public, mining companies and other stakeholders engaged in the development of Québec’s mining sector.”

Xstrata Nickel’s Raglan mine has already put in place solid sustainable development practices and progressive rehabilitation is being implemented for its operations. The company has also given priority to a profit-sharing agreement with the neighbouring communities and to the hiring of Nunavik employees and Inuit businesses.

ends

Xstrata Contacts

Francis Beauvais
Telephone 819-762-7800 ext. 4869
Email fbeauvais@xstratanickel.ca

Xstrata Nickel’s Raglan Mine
The Raglan mining camp is producing 1.3 million tonnes of ore annually. Through the course of the current year, the concentrator will reach the 600 million pound mark of nickel produced since the operation began in 1997. In 2009, Raglan Mine is spending Cdn$95 million to upgrade its civil infrastructures and power plant. Since 2007, more than Cdn$300 million has been invested in infrastructure modernization. Xstrata Nickel Raglan Mine has an enviable reputation throughout the mining industry as a sustainable development leader and participates in several research programs and activities in Québec’s Nunavik territory.

The Raglan facilities include three underground nickel mines and one open-pit nickel mine, along with a concentrator, an accommodation complex, port facilities at Deception Bay and an aircraft landing strip at Donaldson. Extracted ore is crushed and treated to produce a nickel-copper concentrate. The treatment facility has a capacity of 3,900 tonnes per day. The operation produces 30,000 tonnes of nickel annually.

Xstrata Nickel
Xstrata Nickel, headquartered in Toronto, Canada, is one of Xstrata Group’s global commodity businesses. Xstrata Nickel’s operations include mines and processing facilities in Canada, the Dominican Republic and Australia, and a refinery in Norway. Xstrata Nickel has a promising portfolio of growth projects in Canada, New Caledonia, Tanzania and Brazil. Xstrata Nickel is the world’s fifth largest nickel producer, with annual managed production of more than 107,000 tonnes of refined nickel.

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 a growing platinum group metals business, additional exposures to 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 19 countries.

Proposed Merger with Anglo American

Tue, 30 Jun 2009 16:00:00 +0100

Zug, 30 June 2009

The information contained in this section of the Xstrata website is restricted and is not for release, publication or distribution, directly or indirectly, in whole or in part in, into or from the United States, Australia, Canada, Japan or South Africa or any jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction.

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Peter Coates to retire as Xstrata Australia Chairman

Tue, 30 Jun 2009 09:15:26 +0100

Sydney, 30 June 2009

Peter Coates will retire from the position of non executive Chairman, Xstrata Australia, on 3 July 2009 to concentrate on his increasing external board workload.

“Xstrata continues to be a dynamic and innovative leader in the resources sector and I am very proud to have worked with such a committed management team,” said Mr Coates.

Mr Coates held the position of Chief Executive of Xstrata’s global coal business from its inception as Glencore Coal in 1994 until his retirement in December 2007. During that time Xstrata Coal grew to become the world’s leading exporter of thermal coal, with more than 30 operations across South Africa, Australia and the Americas.

Xstrata Coal Chief Executive Peter Freyberg said, “Peter has been an invaluable part of Xstrata’s continued global success and made a significant contribution to the Australian resources sector through his commitment to addressing issues such as safety, climate change and the need for the development and testing of low emission technology.

“We wish Peter continued success as he pursues new challenges and opportunities.”

Mr Coates is Deputy Chairman and Chairman elect of Santos. He is Chairman of Minara Resources Ltd and a director of Downer EDI Limited. He is a past Chairman of the Minerals Council of Australia, the NSW Minerals Council and the Australian Coal Association. He was a member of the APEC 2007 Business Consultative Group and the 2007 Emissions Trading Task Group.

Mr Coates received The Officer of the Order of Australia award in June 2009.

ends

Xstrata contacts
Name	James Rickards Communications Manager
Telephone	+61 2 9253 6789
Mobile	+61 419 731 371
Email	jrickards@xstratacoal.com
www.xstrata.com

Xstrata Copper: SMI launches feasibility study of Tampakan Project

Fri, 26 Jun 2009 13:15:00 +0100

General Santos City, 26 June 2009

SMI (Sagittarius Mines, Inc.) announces commitment to a feasibility study to further evaluate development of the world-class Tampakan copper–gold project in Southern Mindanao, the Philippines.

Following a thorough review of the results of all work programs associated with the extended Pre-Feasibility Study, SMI’s funding shareholders have approved the US$74 million feasibility study phase which will entail a detailed engineering study to determine whether the project will advance to development stage.

SMI has engaged the services of Bechtel, a global leader in engineering and construction, as the lead engineer for the Tampakan feasibility study under a global alliance with Xstrata Copper that covers the potential execution of multiple copper concentrator projects.

Based on the current schedule, the feasibility study is expected to be submitted to the government by the second quarter of 2010.

“This phase we are embarking on is very significant for SMI and for the future of the Tampakan project. The decision to develop a major copper mine at Tampakan will depend on the outcomes of the feasibility study, which will examine the economic, social and environmental viability of this project,” said SMI President, Peter Forrestal.

“Through all its development stages, the Tampakan project will continue to be run in line with leading environmental and social practices, based on partnership with its stakeholders, to create mutual benefits for shareholders, the communities associated with the project and the Philippines,” Mr Forrestal said.

Partners in the Tampakan project include Xstrata Copper (62.5%), Indophil Resources NL (34.23%) and Alsons Corporation (3.27%).

Ends

Contact Person:
John B. Arnaldo
Corporate Communications Manager
Sagittarius Mines, Inc.
Mobile: (+63 928) 550-3847
SMI Media Care Hotline
Mobile: (+63 918) 864-4685

Notes to editors:

About the Tampakan Copper-Gold Project
The Tampakan Copper-Gold Project is located on the southern Philippine island of Mindanao, approximately 65 kilometers North of General Santos City.

It is situated on the boundaries of three Provinces – South Cotabato, Sultan Kudarat and Davao Del Sur. The Tampakan Copper- Gold deposit is located in the province of South Cotabato, municipality of Tampakan.

On 30 March 2007, Xstrata Copper acquired 62.5% of the controlling interest in the Tampakan Copper-Gold Project and assumed management control through its Philippines based affiliate Sagittarius Mines, Inc.
www.smi.com.ph

About Xstrata Copper
Headquartered in Brisbane, Australia, Xstrata Copper is one of the commodity business units within the major global diversified mining group Xstrata plc. Its operations and projects span eight countries: Australia, Argentina, Chile, Peru, Canada, the USA, the Philippines and Papua New Guinea. Its operations are administered by five separate divisions, based close to the mining operations, namely the North Queensland, Minera Alumbrera, North Chile, Southern Peru and Canada divisions. It also has a recycling business (Xstrata Recycling) with plants in the United States and offices in Canada and Asia.

Xstrata Copper’s world-leading portfolio of growth projects includes Las Bambas in Peru, Tampakan in the Philippines, El Morro in Chile, El Pachón in Argentina and Frieda River in Papua New Guinea.

Notifications of Major Interest in Shares

Thu, 25 Jun 2009 23:16:22 +0100

Xstrata's proposed merger of equals with Anglo American

Wed, 24 Jun 2009 15:16:28 +0100

Zug, 24 June 2009

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Rule 2.10 of the UK Takeover Code

Mon, 22 Jun 2009 13:38:43 +0100

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION (IN WHOLE OR IN PART) IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

Zug, 22 June 2009

Xstrata plc (“the Company” or “Xstrata”) announces, in accordance with Rule 2.10 of the UK Takeover Code (the “Code”), that at the close of business on 19 June 2009 the Company had the following relevant securities (within the meaning of the Code) in issue:

2,933,011,620 ordinary shares of US$0.50 nominal value each (of which 28,428,786 are held by Batiss Investments Limited (“Batiss”) pursuant to the Equity Capital Management Programme) under ISIN code GB0031411001 and Swiss Security Number 1386 215; and
374,900 guaranteed convertible bonds due 2017 issued by Xstrata Capital Corporation A.V.V., a subsidiary of the Company, represented by a global bond with an aggregate nominal value of US$374,900,000 under ISIN code XS0267908324, which are convertible into 25,680,492 ordinary shares of the Company.

As regards ordinary shares held by Batiss, Batiss waives its right to receive any dividends on, and does not exercise voting rights attaching to, ordinary shares held by it from time to time.
Xstrata also has in issue:

50,000 non-voting deferred shares of £1 nominal value each; and
1 special voting share of US$0.50 nominal value.

ends

Xstrata contacts

Name	Richard Elliston	Name	Claire Divver
Telephone	+44 20 7968 2885	Telephone	+44 20 7968 2871
Mobile	+44 7759 924 576	Mobile	+44 7785 964 340
Email	relliston@xstrata.com	Email	cdivver@xstrata.com

www.xstrata.com

Approach to Anglo American

Sun, 21 Jun 2009 15:26:44 +0100

Zug, 21 June 2009

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Xstrata Nickel update on Montcalm Mine

Mon, 08 Jun 2009 17:00:30 +0100

Timmins, 8 June 2009

Xstrata Nickel’s Sudbury Operations today announces the indefinite suspension of mining operations at its Montcalm Mine in Timmins, Ontario after a geotechnical review showed structural damage to the mine. Unplanned ground movements at Montcalm forced underground activity at the mine to be stopped at the end of March 2009 to ensure the safety of the workforce and enable geotechnical investigations and monitoring to be carried out.

Keith Bullock, Mine Manager at Montcalm said: “Safety remains our paramount concern. We are unable to access the mine until a further investigation is conducted and a full assessment of options and risk management plans is complete. We have therefore decided to cease operations indefinitely. We will continue to conduct further geotechnical monitoring at the mine to assess the full extent of the structural damage and the options that are available to us.”

Xstrata Nickel remains committed to proactively engaging with Montcalm’s stakeholders throughout the process. Xstrata Nickel’s employees at Montcalm will continue to assist with ongoing assessments and environmental stewardship of the operation in the near term.

Montcalm was expected to produce approximately 9,000 tonnes of nickel contained in concentrate this year. Its mine life was scheduled to end in mid 2011. The impact of actions at Montcalm to production from the Sudbury Smelter are expected to be substantially offset as it continues to process concentrate from the company’s Raglan and Australasian operations, initial ore from Nickel Rim South and third party feed sources.

Ends

Editors Notes

Contacts

Xstrata Nickel
Keith Bullock
Telephone +1 705 267-8842
Mobile +1 705 698-9261
Email kbullock@xstratanickel.ca

Peter Fuchs
Telephone +1 416 775-1523
Mobile +1 416 305-9273
Email pfuchs@xstratanickel.ca

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

Investors and analysts
Hanré Rossouw
Telephone + 44 20 7968 2820
Mobile + 44 7879 455885
Email hrossouw@xstrata.com

Xstrata Nickel: Inuit communities receive $6.8 million in profit-sharing from Xstrata Nickel's Raglan mine

Thu, 04 Jun 2009 17:15:22 +0100

Montreal, Québec, June 4, 2009

Xstrata Nickel is pleased to announce that it has presented a cheque in the amount of Cdn$6.8 million to the Makivik Corporation, representing its share of the profits generated in 2008 by the Raglan nickel mine operation, located in the Nunavik Territory of Northern Québec.

Pita Ataami, President of the Makivik Corporation, said “Once again, this year's profit sharing will benefit Nunavimmiut with much needed assistance. These payments are appreciated considering that Nunavik has one of the highest costs of living in Canada.”

Yearly profit-sharing is part of the Raglan Agreement, a comprehensive agreement signed in 1995 by the Raglan operation and Makivik and local Inuit communities. The agreement supports the harmonized relations and fostering of opportunities between Xstrata Nickel and local populations and their representatives in areas such as training, hiring of local businesses and environmental management. To date, Raglan has delivered more than Cdn$65.4 million back to the community.

Ian Pearce, Chief Executive Officer of Xstrata Nickel, said “Despite difficult economic conditions, Raglan continues to deliver sustainable ore production at a rate of 1.3 million tonnes annually. Raglan has a world-class deposit that will remain a key asset for our business for many years to come, and we remain committed to sharing our successes with our local communities through the Raglan Agreement.”

Xstrata Nickel’s Raglan mining camp was constructed at a cost of Cdn$600 million and began production in 1997. In 2008, capital investments included Cdn$95 million for mining development activities, infrastructure maintenance and geology.

The operation consists of three underground and one open pit nickel mines, concentrator, accommodation complex, port facilities at Deception Bay and an air strip at Donaldson. The ore from the mine is crushed, ground and treated at the Raglan mill to produce a nickel-copper concentrate. Milling capacity is 3,900 tonnes per day. Nickel capacity at the concentrator now stands at 30,000 tonnes of nickel-in-concentrate per year.

Ends

Makivik Corporation
Makivik Corporation is the Inuit owned economic development company created following the signing of the James Bay and Northern Quebec Agreement (JBNQA) in 1975. It has the mandate to represent the 9,800 Inuit of Nunavik at the political level, and to administer the funds of the Agreement accorded to the Inuit ($90-million has been received over a 20 year period). Makivik owns subsidiary companies such as Air Inuit, First Air, Nunavik Arctic Foods, Nunavik Creations, Halutik Fuels, and jointly owns with other Inuit regional corporations Pan Arctic Inuit Logistics (PAIL) and Cruise North Expeditions.

Information:

Kitty Gordon Communications Officer Makivik Corporation Tel: (514) 745-8880 Email: k_gordon@makivik.org	Francis Beauvais Communications and External Affairs Xstrata Nickel, Raglan Operations Tel: (819) 762-7800 x4869 Email: fbeauvais@xstratanickel.ca
Peter Fuchs Director, Corporate Affairs Xstrata Nickel Tel: (416) 775-1523 Email: pfuchs@xstratanickel.ca

Notification of Major Interests in Shares

Fri, 29 May 2009 08:07:35 +0100

Zug, 29 May 2009

Xstrata plc ("Xstrata") announces that it was notified by Capital Research and Management Company yesterday that the Capital Research and Management Company has decreased its holding by 2,133,350 voting rights/shares of the issued share capital.

As a consequence, the current total shareholding in Xstrata of Capital Research and Management Company is 145,466,653 voting rights, representing 4.9596% of Xstrata's ordinary issued share capital.

Ends

Xstrata Contacts

Richard Elliston
Telephone 020 7968 2885
Mobile 07759 924 576
Email relliston@xstrata.com

Claire Divver
Telephone 020 7968 2871
Mobile 07785 964 340
Email cdivver@xstrata.com

Xstrata Copper: Energia Austral and Transelec sign second agreement requiring US$ 19.7 million for the development of a transmission line

Tue, 19 May 2009 21:00:48 +0100

JOINT ENERGIA AUSTRAL AND TRANSELEC PRESS RELEASE

Follows the Framework Agreement signed by both companies in May 2008:

ENERGÍA AUSTRAL AND TRANSELEC SIGN SECOND AGREEMENT REQUIRING US$19.7 MILLION FOR THE DEVELOPMENT OF A TRANSMISSION LINE

The agreement includes the definition of the routes for the alternating and continuous current lines, the location of the substations, the preparation of an Environmental Impact Study and the obtaining of the electrical concessions.
Santiago, May 19th 2009
Energía Austral - a subsidiary of Xstrata Copper - and Transelec signed this morning a contract to undertake the necessary studies to further develop Energia Austral's transmission system to carry energy generated by its Cuervo, Blanco and Cóndor hydroelectric power plants to the Central Interconnected System (known as SIC, from its initials in Spanish). The contract is the second stage of the Framework Agreement signed between the two companies in May 2008 for the design of Energia Austral's transmission line and follows on from the prefeasibility stage completed in October 2008.
The contract was signed by the General Managers of Energía Austral and Transelec, Alberto Quiñones and Andrés Kuhlmann respectively, and by the Executive General Manager of Xstrata Copper Project Evaluation Peter Forrestal.
The new agreement covers the following activities: the definition of the route to be followed by the alternating current lines that will transport energy from the hydroelectric plants to a concentrator substation; the definition of the route to be followed by the continuous current line that will carry energy to its injection point on the SIC; the location of the two convertor substations required by the transmission system; the elaboration of the environmental impact study to be presented to the authorities and the procedures required to obtain the corresponding electrical concessions.
The contract signed this morning considers an execution period of 27 months, beginning in May 2009 and running to July 2011, and involves an investment of US$19.7 million.
Transelec General Manager Andrés Kuhlmann expressed his satisfaction with the agreement reached with Energia Austral: "As a company, we shall make available to this important challenge all our knowledge and experience in order to provide the transmission solution that best serves the requirements of Energía Austral and the needs of the country."
“Energía Austral is well advanced in the design of a transmission solution for its hydroelectric project that takes into consideration economic, environmental and social criteria, and Transelec's expertise in this area gives us absolute confidence that we shall achieve the best project possible," said Energía Austral General Manager Alberto Quiñones.
This phase also includes the preparation by Transelec of the technical specifications and tender documents for the possible construction of the line and an estimation of the investment that the line will require.
Ends
Contacto de Energía Austral:
Marcela Riquelme                                               Emily Russell
Tel: +56 2 4782415                                            Ph: +44 (0) 1865 510 918
Email: mriquelme@xstratacopper.com                   erussell@xstratacopper.com

Contacto de Transelec
Claudio Vera
Tel.: +56 2 4677082
Email: cvera@transelec.cl
ABOUT ENERGÍA AUSTRAL
Energía Austral is a subsidiary company of Xstrata Copper, created to study and develop three hydroelectric plants in the Region of Aysen in southern Chile: Río Cuervo, Río Blanco and Lago Cóndor. Energía Austral forms part of Xstrata Copper's Project Evaluation group.
ABOUT XSTRATA COPPER
Headquartered in Brisbane, Xstrata Copper is one of the commodity business units within the major global diversified mining group Xstrata plc. Its operations and projects span eight countries: Australia, Argentina, Chile, Peru, Canada, the USA, the Philippines and Papua New Guinea. Its operations are administered by five separate divisions, based close to the mining operations, namely the North Queensland, Minera Alumbrera, North Chile, Southern Peru and Canada divisions. It also has a recycling business (Xstrata Recycling) with plants in the United States and offices in Canada and Asia. Xstrata Copper is the fourth largest global copper producer with annual attributable production capacity of over one million tonnes.
ABOUT TRANSELEC
Transelec is Chile's leading electrical transmission company. Transelec's transmission lines transport electricity from production centres to cities that are home to 99% of the population, major industrial consumers and mining operations. Transelec owns an interconnected network of more than 8,000 kilometres of simple and double circuit transmission lines that stretch more than 2,900 kilometres from the city of Arica to the Island of Chiloe. The company has 6 local departments (Upper North, Lower North, Central, Central-South, Biobío and South) and 49 substations distributed through the SIC and SING grids. Transelec controls 10,231 MVA of transformation capacity. The company is responsible for ensuring that Chileans enjoy a continued and uninterrupted supply of electricity.

Xstrata Copper: Unionised staff to return to work from Friday - Agreement reached at Lomas Bayas

Thu, 14 May 2009 21:00:31 +0100

Baquedano, May 14th 2009
Late last night, members of the Lomas Bayas Workers' Union accepted the company's new offer, reached after a full day of extensive negotiations at the mine.
"We are very satisfied with the final agreement reached with the union and the peaceful manner in which the conflict was handled, confirming our commitment to finding a solution that suits both parties. Using the final proposed collective contract as a base, a situation developed that allowed us to include instruments that favored mutual agreement," said Alberto Cerda, General Manager at Lomas Bayas.
The executive said the new approved offer could be summed up in four aspects: a modification of the formula for calculating the production bonus; an increase in the number of days off permitted to union officials for union activities; a soft loan worth 1.5 million Chilean pesos and repayable over 36 months and a new one-time performance bonus for 2008 worth 400,000 Chilean pesos.
These points will be added to the company's final offer, which includes a 4% above inflation pay increase, plus other benefits like an increase in the contribution to complementary health insurance from 65% to 75%; an average 50% increase in support for education from nursery to university level; increases of between 9% and 27% in a range of bonuses, including those for holidays and night shifts; the creation of a new performance bonus that will reflect positive variations in the copper price and an end-of-negotiation bonus worth 4.1 million Chilean pesos.
The resolution of the conflict means that unionised staff will return to work from the first shift on Friday.
Ends
Contacts:
Name: Luis Lino
Phone: +56 55 416107
Cell phone: +56 9 9699 8107
Email: llino@xstratacopper.cl
Name: Juan Pablo Schaeffer
Phone: +56 2 478 2272
Cell phone: +56 9 9949 5245
Email: jschaeffer@xstratacopper.cl
About Xstrata Copper
Headquartered in Brisbane, Xstrata Copper is one of the commodity business units within the major global diversified mining group Xstrata plc. Its operations and projects span eight countries: Australia, Argentina, Chile, Peru, Canada, the USA, the Philippines and Papua New Guinea. Its operations are administered by five separate divisions, based close to the mining operations, namely the North Queensland, Minera Alumbrera, North Chile, Southern Peru and Canada divisions. It also has a recycling business (Xstrata Recycling) with plants in the United States and offices in Canada and Asia.
Xstrata Copper is the fourth largest global copper producer with annual attributable production capacity of over one million tonnes.
About the North Chile Division
Xstrata Copper's North Chile Division manages Xstrata's wholly-owned operations, such as the Altonorte metallurgical complex and the Lomas Bayas mine, as well as Xstrata's 44% stake in Minera Collahuasi.
Altonorte is a custom smelter which provides treatment services for raw materials and alternative inputs, including copper concentrates and mine by-products, to produce copper anodes, sulphuric acid and, to a lesser extent, molybdenum oxide. It began operating 1993 and is located 20 kilometres south of the city of Antofagasta, at Panamericana Norte, Km 1,348, La Negra, Antofagasta Region.
Lomas Bayas is an open pit with the lowest head grade in the country. Its only raw material is copper oxide-bearing ore, which is leached with sulphuric acid in two permanent piles, one for high grade ore and one for low grade ore. The process continues with a solvent extraction plant and an electrowinning plant, to produce 99.99% pure copper cathodes. It began operating in 1998 and is located on Route 385, 110 kilometres north-east of the city of Antofagasta, at Km 36 in the district of Sierra Gorda, Antofagasta Region.