Kon�, 11 April 2013

Xstrata Nickel's Koniambo Nickel project has gone into production with first metal tapped this week.

Production marks a key milestone for this complex $5 billion greenfield project in New Caledonia, which has been under construction for the past six years and has been a flagship component of Xstrata's organic growth programme. At the height of its construction more than 6,000 people were employed in building the project and its associated infrastructure.

First metal production signals the start of Koniambo Nickel as a multi-decade, tier one asset with long-term cash costs at the bottom of the second quartile. At peak production the mine will further cement New Caledonia's position as one of the most important nickel producers in the world and provide steady employment for approximately 800 workers, with a focus on local employment, and indirect employment for thousands of others.

Ian Pearce, Chief Executive of Xstrata Nickel, said: "All components of the mining and smelting process have now been successfully tested, leading to production of metal from Line 1. The production of first nickel metal at Koniambo after six years of complex design and construction is a huge achievement and a source of great pride for all of our employees. We are on track to deliver the full production rate of 60,000 tonnes per annum by the end of 2014 as scheduled, while maintaining excellence in terms of environmental and safety performance at this world-class industrial complex."

End

Neither the content of the company's website nor the content of any other website accessible from hyperlinks on the company's website is incorporated into, or forms part of, this announcement

Xstrata Nickel New Caledonia:		Xstrata Nickel contact:
Antonin Beurrier		Peter Fuchs
Telephone	+687 25 56 71	Telephone	+1 416 775 1523
Mobile	+687 76 73 03	Mobile	+1 416 305 9273
Email	abeurrier@xstratanickel.nc	Email	pfuchs@xstratanickel.ca

www.xstrata.com

________________________________________________________________________________________________________________________

Notes to Editors

About Koniambo Nickel

Koniambo Nickel SAS is developing a world-class industrial complex that at peak production will further cement New Caledonia as one of the most important nickel producers in the world. Benefitting from one of the largest and highest grade undeveloped nickel resources in the world, it will be a low-cost and long-life operation committed to sustainable development.

Once construction is complete, Koniambo Nickel will operate a mine, a pyrometallurgical nickel smelting process plant, a power plant and other complementary infrastructure, including a deep water private port and 11-km overland conveyor.

Located near the North Province capital of Kon� in New Caledonia, Koniambo Nickel is a catalyst for regional development. Through the employment of 750 permanent staff and long-term relationships with local contractors and suppliers, Koniambo Nickel truly represents a unique opportunity for surrounding communities to shape their future as well as the future of the North Province and New Caledonia.

About Xstrata Nickel

Xstrata Nickel, headquartered in Toronto, Canada, is one of Xstrata Group's global commodity businesses. We operate mines and processing facilities in Canada, the Dominican Republic and Australia, and a refinery in Norway. We also have a world-class portfolio of growth projects in New Caledonia, Tanzania and Brazil.

We are the world's fourth largest nickel producer, with annual managed production of almost 106,000 tonnes of nickel. We produce some of the world's purest nickel, ferronickel and cobalt and are one of the largest recyclers and processors of nickel and cobalt-bearing materials. Nickel-containing materials play a vital role in modern life and can be found in everything from cooking utensils, cutlery and saucepans, to medical equipment, mobile phones, wind turbines, computers, coins, and marine and aerospace engineering. For more information, visit www.xstratanickel.com.

About Xstrata plc

We are a major producer of a range of vital commodities used in everything from constructing buildings and delivering electricity, to developing jet engines and mobile phones. We are one of the top five global producers of copper, thermal and metallurgical coal, ferrochrome, zinc and nickel and we also produce silver, lead, platinum, gold, cobalt and vanadium.

Founded in 2002 and headquartered in Switzerland, we operate in over 20 countries and employ over 70,000 people at more than 100 operations and projects around the world. We work in a responsible and sustainable way, with an entrepreneurial spirit and dynamic approach. For more information, visit www.xstrata.com.

Xstrata plc

	PRODUCER
	CODE : XTA.L

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Xstrata is a zinc and lead producing company based in Switzerland.

Xstrata produces zinc, lead, bauxite, coal, cobalt, copper, gold, molybdenum, nickel and silver in Argentina, in Australia, in Botswana, in Canada, in Chile, in Colombia, in Jamaica and in Peru, develops cobalt, copper, copper , gold, lead, molybdenum, nickel, palladium, platinum, silver, uranium and zinc in Argentina, in Australia, in Canada, in Chile, in Dominican Republic, in New Caledonia and in Philippines, and holds various exploration projects in Argentina, in Australia, in Botswana, in Brazil, in Canada, in Chile, in Greenland, in Ireland, in Mexico, in Norway, in Panama, in Papua New Guinea, in Peru, in South Africa, in Turkey and in Yemen.

Its main assets in production are ALUMBRERA in Argentina, KIDD CREEK MINE (MINE D), CRAIG - ONAPING (SUDBURY) MINE, PELLETIER LAKE (STADACONA MINE), LINDSLEY MINE, NORALEX (WEST ANSIL, HORNE, ETC), STRATHCONA, KIDD CREEK DIVISION, BUCKO LAKE, FALCONBRIDGE MINE, RAGLAN, SUDBURY, BRUNSWICK MINE and KIDD in Canada, HYC MCARTHUR RIVER, MOUNT ISA LEAD ZINC SILVER, ERNEST HENRY, BOUNTY MINE, COSMOS MINE, THUNDERBOX, EMILY ANN (LAKE JOHNSTON), MT MCCLURE, MT ISA, SILVER SWAN, MT ISA BLACK STAR, MT ISA ENTERPRISE and EMILY ANN in Australia, LOMAS BAYAS and COLLAHUASI MINE in Chile, TINTAYA, ANTAMINA, ANTAMINA and ANTAMINA ZINC ORE in Peru, PHOENIX MINE (TATI NICKEL) in Botswana, PRODECO in Colombia and ST ANN BAUXITE in Jamaica, its main assets in development are LENNARD SHELF, MAGGIE HAYS, CLONCURRY COPPER and LENNARD SHELF in Australia, CERRO DE MAIMON and FALCONDO MINE in Dominican Republic, AGUA RICA and EL PACHON in Argentina, HACKETT RIVER, PREMIERE RIDGE, ONAPING DEPTH, FRASER MORGAN, NICKEL RIM SOUTH, ONAPING DEPTH, PERSEVERANCE and PD1 in Canada, LOMAS BAYAS II in Chile, KONIAMBO in New Caledonia and TAMPAKAN in Philippines and its main exploration properties are HORNE SMELTER, ISLAND COPPER, KONRAD, MARY MARCH, MEGATEM, ROBB LAKE, AKWESKWA, MUSK, CEZINC, DONKIN, TROILUS / TORTIGNY, TORTIGNY, SABIN, CHANCE, TULKS NORTH, CATFACE, GREAT BURNT LAKE, WEST ANSIL, TULK SOUTH - DOMINO, TULK EAST B ZONE, TULK SOUTH BOOMERANG, TULK EAST A ZONE, TULK LONG LAKE MAIN ZONE, SKIDDER, MATAGAMI, HEATH STEELE MINES, GASPE MINE and MONTCALM TWP PROP in Canada, BLACK ROCK, TOBY CREEK, MUSGRAVE, MOUNT PEAKE and SINCLAIR in Australia, ELMALAAN in Turkey, MANGABAL in Brazil, KABANGA in Tanzania, FRIEDA - NENA DEPOSIT in Papua New Guinea, PALLAS GREEN in Ireland and DIKOLOTI in Botswana.

Xstrata is listed in Germany and in United Kingdom. Its market capitalisation is GBX 2 893.1 billions as of today (US$ 4 497.6 billions, € 3 435.7 billions).

Its stock quote reached its lowest recent point on April 30, 2013 at GBX 963.50, and its highest recent level on May 02, 2013 at GBX 999.70.

Xstrata has 3 002 692 076 shares outstanding.

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Nickel News Release: Koniambo Nickel produces first nickel metal; on track to achieve full productio

Xstrata plc