NEWS RELEASE
PRODUCTION REPORT FOR 12 MONTHS ENDED
31 DECEMBER 2007
Zug, 25 February 2008
Highlights:
· Record annual production achieved at Xstrata�s coking and thermal coal, ferrochrome, nickel, zinc mining and platinum operations
· Record copper production in the second half, with particularly strong operating performances from Tintaya, Ernest Henry and Collahuasi, compensated for lower first-half volumes
· Production of Australian coking, semi-soft coal and South African thermal coal up by over 20%, benefiting from lower-cost production from the new Wollombi, 5-Seam and Goedgevonden pits
· Full year of Mototolo JV and start-up of newly acquired Elandsfontein operation boosted PGM production to over 83,000 ounces
· Expansion of existing operations including Raglan (nickel), Rolleston and Cerrejon (both thermal coal), McArthur River Mine and Mount Isa concentrator (both zinc-lead) further boosted volumes
· Strong operating performance achieved despite north Chile earthquakes, flooding in Australia and the Dominican Republic, SAG mill failures at Antamina and Collahuasi and a fire at Mount Isa
Xstrata Alloys
Following the successful commissioning of the Lion smelter in 2006, saleable production of ferrochrome in 2007 rose by 27% compared to the previous year, to set a new production record. The vanadium business reported a 13% decline in production volumes following planned maintenance work to re-line the kiln, mining difficulties and a shortage of vanadium-rich spinel during the second half of the year.
The first full year of production from the Mototolo PGM joint venture together with the start-up of the newly acquired Elandsfontein operation markedly increased attributable PGM production to 83,180 ounces in 2007 from 9,680 ounces in 2006.
PRODUCTION DATA
Statutory
Year ended
31.12.07 Statutory
Year ended
31.12.06
Chrome*
Attributable saleable production
Ferrochrome (kt) 1,219 959
Vanadium**
Attributable saleable production
V2O5 (k lbs) 18,870 21,651
Ferrovanadium (k kg) 4,280 4,907
Platinum***
Attributable saleable production
Platinum (oz) 47,699 5,428
palladium (oz) 27,136 3,249
Gold (oz) 616 83
Rhodium (oz) 7,729 920
* Including Xstrata�s 79.5% and c. 81.3% share of the Xstrata-Merafe Chrome Venture in 2007 and 2006 respectively
** Including 100% of vanadium production
*** Including Xstrata�s 37% share of the Mototolo JV and 74% share of Eland Platinum
Xstrata Coal
Boosted by a 20% increase in volumes at South African operations following the ramp up of Goedgevonden, new production from the 5 Seam open cut operation and from Xstrata�s increased share in ATC/ATCOM, total consolidated thermal coal production rose by 6%.
In Colombia, Xstrata Coal�s share of production increased by 4% over the prior year, in line with Cerrej�n�s expansion to 32 million tonnes per annum. Production in New South Wales shifted to higher margin semi-soft products, resulting in a 21% growth in semi-soft production, while overall Australian thermal production was slightly lower on a consolidated basis, mainly due to adverse weather conditions. A planned reduction in thermal volumes from Queensland�s NCA Complex was offset by continued growth at Rolleston.
A combination of increased coking coal production at the new Newlands Wollombi pit and productivity improvements at Oaky Creek resulted in a 21% increase in overall coking coal production for the year.
PRODUCTION DATA
(million tonnes) Statutory
Year ended
31.12.07 Pro forma�
Year ended
31.12.06
Total consolidated production* 82.8 76.5
Total thermal coal 69.6 65..6
Thermal Australia 35.0 35.6
Thermal South Africa 24.7 20.5
Thermal Americas 9.9 9.5
Coking Australia 6.8 5.6
Semi-soft Australia 6.4 5.3
� Pro forma including Cerrej�n acquisition from 01.01.06
* Including Xstrata Coal�s proportionate share of joint ventures and 100% of subsidiaries
Xstrata Copper
Following a strong second half performance, Xstrata Copper produced just under one million tonnes of mined copper, 2% lower than the previous year�s pro forma output. Production benefited from strong operating performances at Tintaya, Ernest Henry and an excellent second-half performance at Collahuasi, which compensated for a 46-day shutdown in the first half to replace the stator in the main SAG mill. These achievements offset the impact of lower grades at Mount Isa and Alumbrera, reduced throughput at the Kidd mine, lower grade copper-zinc ores and a SAG mill failure at Antamina and the impact of fourth quarter earthquakes and lower grades at Lomas Bayas.
Total gold volumes were in line with the previous year as lower grades at Alumbrera were largely offset by higher volumes and grades at Ernest Henry.
Expansions of the Townsville refinery improved cathode production, but was offset by lower throughput at Lomas Bayas and at the CCR refinery, where operations were impacted by industrial action.
PRODUCTION DATA
Statutory
Year ended
31.12.07 Pro forma�
Year ended
31.12.06
Argentina � Alumbrera* � �
Material mined (t) 109,925,781 112,162,343
Ore mined (t) 25,617,080 31,001,345
Copper head grade (%) 0.56 0.56
Gold head grade (g/t) 0.67 0.71
Ore treated (t) 38,606,768 36,349,692
Concentrate produced (t) 697,525 678,690
Copper in concentrate (t) 180,223 180,144
Gold in concentrate (oz) 540,788 567,744
Gold in dor� (oz) 74,372 73,414
Total gold (oz) 615,160 641,158
Australia � Ernest Henry �
Material mined (t) 40,388,117 59,217,847
Ore mined (t) 11,547,835 10,754,485
Copper head grade (%) 0.94 0.89
Gold head grade (g/t) 0.47 0.44
Ore treated (t) 11,114,286 10,300,686
Concentrate produced (t) 326,857 287,888
Copper in concentrate (t) 95,846 83,968
Gold in concentrate (oz) 123,305 105,563
Australia � Mount Isa �
Ore mined (t) 6,008,567 6,192,980
Copper head grade (%) 3.12 3.42
Ore treated (t) 6,059,744 6,129,366
Concentrate produced from ore (t) 679,948 765,229
Copper in concentrate from ore (t) 172,552 194,135
Anode copper (t) 217,907 212,721
Refined copper (t) 231,959 209,188
Canada � Kidd Creek mine copper �
Ore mined (t) 2,346,260 2,515,978
Copper head grade (%) 2.10 2.05
Ore treated (t) 2,364,603 2,633,041
Concentrate produced (t) 163,130 178,929
Copper in concentrate (t) 46,615 50,405
Zinc in concentrate (t) 94,178 114,984
Copper cathode (t) 127,784 127,900
Canada � Horne �
Concentrate treated (t) 796,639 843,246
Copper anode (t) 177,289 184,989
Canada � CCR Refinery �
Refined copper (t) 319,552 368,319
Chile � Collahuasi** �
Material mined (t) 79,982,760 75,754,993
Ore mined (t) 27,266,800 23,744,632
Copper head grade (%) 1.10 1.00
Ore milled (t) 19,219,139 18,193,120
Concentrate produced (t) 592,234 577,453
Copper in concentrate (t) 173,303 167,289
Copper cathode (t) 25,593 26,320
Chile � Lomas Bayas �
Material mined (t) 47,997,375 41,658,631
ROM leach (t) 22,441,476 14,340,308
ROM copper grade (%) 0.25 0.23
Heap leach (t) 13,098,070 14,368,013
Heap copper grade (%) 0.41 0.49
Copper cathode (t) 61,401 64,312
Chile � Altonorte �
Copper anode (t) 272,846 281,992
Peru � Antamina Copper*** �
Material mined (t) 39,115,169 39,472,731
Ore mined (t) 12,337,415 11,196,359
Copper head grade (%) 1.21 1.38
Ore treated (t) 10,521,097 10,211,297
�
Copper concentrate produced (t) 383,109 458,186
Copper in concentrate (t) 111,347 129,675
Peru � Tintaya �
Material mined (t) 76,453,827 71,619,469
Ore mined (t) 11,766,019 10,738,711
Ore milled (t) 6,766,802 6,555,955
Copper grade in ore milled (%) 1.44 1.35
Gold grade in ore milled (g/t) 0.36 0.33
Concentrate produced (t) 251,094 243,146
Copper in concentrate (t) 83,802 78,318
Gold in concentrate (oz) 38,792 40,093
Copper cathode (t) 35,982 36,729
Total mined copper (t) (contained metal) 986,663
Total mined gold (oz) (contained metal) 777,257 786,813
Total copper cathode (t) 802,271 832,768
� Pro forma including Falconbridge and Tintaya acquisitions from 01.01.06
* On 100% consolidated basis
** Including Xstrata Copper's 44% share of Collahuasi
*** Including Xstrata Copper's 33.75% share of Antamina
Xstrata Nickel
Xstrata Nickel�s mined nickel production was slightly higher than in 2006. Lower grades at the Sudbury and Montcalm operations were offset by increased volumes due to the Raglan expansion. The decrease in grades also impacted mined copper and cobalt production.
Record production rates of nickel in matte by the Sudbury smelter were primarily due to higher levels of concentrate received from the Raglan mine and feed from third parties. The Nikkelverk refinery also produced record refined nickel due to increased volumes of feed.
Ferronickel production declined slightly, down by 2% on the prior period, as a result of lower volumes mined at the Falcondo operation. The interruption to production caused by Tropical Storm Noel and related flooding was offset by delaying a scheduled maintenance shutdown from November 2007 to the second quarter of 2008.
PRODUCTION DATA
Statutory
Year ended
31.12.07 Pro forma�
Year ended
31.12.06
North America � Sudbury Operations
Ore mined (t) 1,866,022 1,891,938
Nickel head grade (%) 1.04 1.11
Copper head grade (%) 1.10 1.20
Ore treated (t) 2,177,105 2,257,755
Nickel in concentrate (t)* 19,757 21,869
Nickel in matte (t)* 67,576 61,066
Copper in concentrate (t)* 21,853 26,184
Copper in matte (t)* 21,978 20,964
Cobalt in concentrate (t)* 620 671
Cobalt in matte (t)* 2,498 2,367
North America � Montcalm
Ore mined (t) 929,251 875,734
Nickel head grade (%) 1.34 1.50
Copper head grade (%) 0.66 0.75
Ore treated (t) 940,853 890,845
Nickel in concentrate (t) 10,140 10,900
Copper in concentrate (t) 5,443 5,680
Cobalt in concentrate (t) 404 431
North America � Raglan
Ore mined (t) 1,127,383 1,001,890
Nickel head grade (%) 2.58 2.56
Copper head grade (%) 0.73 0.74
Ore treated (t) 1,153,582 1,062,391
Nickel in concentrate (t) 26,059 23,704
Copper in concentrate (t) 6,729 6,281
Cobalt in concentrate (t) 523 486
Dominican Republic � Falcondo**
Ore mined (t) 4,062,530 4,096,216
Nickel mine head grade (%) 1.16 1.14
Upgraded ore treated (t) 2,563,961 2,659,780
Upgraded ore grade (%) 1.36 1.35
Nickel in ferronickel (t) 29,130 29,675
Europe � Nikkelverk
Nickel metal (t) 87,590 81,974
Copper metal (t) 34,212 39,657
Cobalt metal (t) 3,939 4,927
Total mined nickel (t) (contained metal) 52,108 51,674
Total mined ferronickel (t) (contained metal) 29,130 29,675
Total mined copper (t) (contained metal) 31,425 33,116
Total mined cobalt (t) (contained metal) 1,412 1,420
� Pro forma including Falconbridge acquisition from 01.01.06
* Including production from ore and other feed purchased from third party mines and smelters
** On 100% consolidated basis
Xstrata Zinc
Xstrata Zinc�s total zinc in concentrate production increased by 10% in 2007 over the previous year to set a new mined zinc production record. This was achieved through the start-up of Lennard Shelf, increased production from the Mount Isa concentrator and McArthur River open pit expansion and higher zinc volumes at Antamina due to the higher proportion of zinc in ore mined. Brunswick mine�s zinc output dropped by 7% due to lower head grades and mine output, whilst increased production at Mount Isa was partially offset by a production loss of approximately 13,000 tonnes of zinc in concentrate and 7,000 tonnes of lead in concentrate following a fire at the zinc-lead concentrator in September.
Zinc metal production declined modestly during the year, following reduced smelter performance due to the failure of a transformer at the San Juan de Nieva smelter in Spain and a 21-day maintenance shutdown at the Kidd zinc hydrometallurgical plant.
Lower head grades at the Mount Isa and Brunswick operations, partially offset by increased volumes at McArthur River, resulted in a 2% decrease in total lead in concentrate produced in 2007. Lead metal production fell by 18% due to lower Mount Isa sourced lead and lower volumes from third-party suppliers to Northfleet (BRM).
PRODUCTION DATA
Statutory
Year ended
31.12.07 Pro forma�
Year ended
31.12.06
Australia � Mount Isa
Ore mined (t) 5,120,651 4,717,178
Zinc head grade (%) 6.5 6.6
Lead head grade (%) 3.3 3.9
Silver head grade (g/t) 69.1 80.4
Ore treated (t) 4,986,078 4,566,808
Zinc in concentrate (t) 226,529 209,914
Lead in concentrate (t) 104,381 108,590
Lead in lead/silver bullion (t) 125,572 118,311
Lead in purchased concentrate (t) 31,560 9,123
Silver in crude lead (koz) 7,533 6,273
Silver in purchased concentrate (koz) 4,042 1,220
Australia � McArthur River
Ore mined (t) 1,961,347 1,885,396
Zinc head grade (%) 10.2 10..9
Lead head grade (%) 4.2 4.2
Ore treated (t) 1,886,627 1,781,553
Zinc in concentrate (t) 137,737 135,538
Lead in concentrate (t) 33,040 30,089
Silver in concentrate (koz) 1,184 1,149
Australia � Lennard Shelf*
Zinc in concentrate (t) 21,045 -
Lead in lead concentrate (t) 6,197 -
Europe � San Juan de Nieva
Zinc metal (t) 478,031 502,834
Europe � Nordenham
Zinc metal (t) 150,222 151,475
Europe � Northfleet
Mount Isa sourced lead (t) 111,974 133,990
Other lead (t) 7,417 28,747
Total lead (t) 119,391 162,737
Mount Isa refined silver (koz) 5,808 8,183
Total silver (koz) 5,808 8,183
North America � Brunswick
Ore mined (t) 3,437,265 3,548,955
Zinc head grade (%) 8.4 8.7
Lead head grade (%) 3.3 3.4
Silver head grade (g/t) 105 108
Ore treated (t) 3,411,156 3,562,523
Zinc in zinc concentrate (t) 230,991 244,247
Zinc in bulk concentrate (t) 20,804 27,591
Lead in bulk concentrate (t) 16,926 17,055
Lead in lead concentrate (t)
Lead in lead concentrate to smelter (t)
Lead in other feeds to smelter (t) 53,191
54,238
16,539 62,376
56,974
15,959
Total refined lead (t) 70,777 67,846
Silver in bulk concentrate (koz)
Silver in lead concentrate to smelter (koz)
Silver in other feeds to smelter (koz) 1,094
2,643
2,336 1,112
2,577
4,222
Total silver in dor� (koz) 4,979 6,814
North America � CEZ refinery **
Zinc metal (t) 72,924 73,196
North America-Kidd Creek
Zinc metal (t) 142,549 150,995
Peru - Antamina Zinc***
Ore mined (t) 12,337,415 11,196,359
Zinc head grade (%) 1.2 0.7
Ore treated (t) 10,521,090 10,211,297
Zinc in concentrate (t) 98,449 52,691
Total zinc in concentrate production (t) 735,555 669,981
Total zinc metal production (t) 843,726 878,500
Total lead in concentrate production (t) 213,735 218,110
Total lead metal production (t) 190,168 230,583
� Pro forma including Falconbridge acquisition from 01.01.06
* Including Xstrata Zinc�s 50% share of Lennard Shelf
** Including Xstrata Zinc�s 25% share of CEZ
*** Including Xstrata Zinc�s 33.75% share of Antamina
ends
Xstrata contacts:
Investors & analysts
Claire Divver Hanr� 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 50,000 people, including contractors.
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