The following announcement was issued by Xstrata Coal in Australia today

Sydney, 10 September 2012

As part of an ongoing review of its business in Australia, Xstrata Coal is undertaking a planned restructuring to respond to industry-wide pressures including low coal prices, high input costs and a strong Australian dollar against the US dollar.

Following this review, and in keeping with the cost savings objectives announced at our half-year earnings, we will be reducing our employee numbers by approximately 600. The reductions involve both contractors and permanent positions.

Although we are not breaking down the reductions by individual site, the restructure is focused on scaling back high cost production at some of our mines. We do not expect a material impact on Australian production volumes. We are also reducing some roles at our corporate headquarters in Sydney and consolidating our office-based operations in Queensland.

Our approved growth projects, such as Ravensworth North, Ulan West and our expansion at Rolleston, are proceeding as planned, and remain on budget and on schedule. Feasibility studies into our Wandoan Project continue, to enable an investment decision once relevant approvals have been completed and market conditions permit.

Ongoing reviews continue across the business to ensure that Xstrata Coal retains a highly competitive cost position in the current market environment. If further adjustments are required, an announcement will be made at that time.

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 Coal contacts:

National media: Francis De Rosa Telephone: +61 2 9253 6789
Mobile: +61 417 074751
Email: fderosa@xstratacoal.com Queensland media:

Kate Campbell

Telephone: +61 7 3115 5460

Mobile: +61 421 611523

Email: kmcampbell@xstratacoal.com.au

New South Wales media:

Allyn Hamonet

Telephone: + 61 2 4925 6431

Mobile: +61 418 228075

Email: ahamonet@xstratacoal.com.au

www.xstratacoal.com

About Xstrata:

We are one of the world?s largest mining and metals companies - a major producer of seven commodities used in everything from constructing buildings and delivering electricity to developing jet engines and mobile phones. We operate in more than 20 countries and employ more than 70,000 people globally.

About Xstrata Coal:

We are the world?s largest seaborne exporter of thermal coal, which provides a vital source of safe, reliable and affordable energy for millions of people around the world. We are also a significant producer of premium quality hard coking and semi-soft coal used to make steel.

The coal we produce is essential for global economic development. This coal helps raise and sustain people?s living standards in countries around the world. In addition to generating the electricity that lights our homes and offices, it helps make the steel used to build our schools and cars, as well as vital infrastructure like bridges and telecommunications towers.

Founded in 2002, we are headquartered in Sydney, Australia, and employ more than 17,000 people, including contractors. We have interests in more than 30 operating coal mines in Australia, South Africa and Colombia and each year manage production of around 100 million tonnes of coal. We export about 80% of this coal to customers around the world, in the process helping meet the energy requirements of millions of people. We have a strong pipeline of long-term coal projects across all our existing geographies, as well as exploration projects in Canada. These projects have the potential to expand our current production by more than 50 million tonnes a year.

At Xstrata Coal, our sustainable development performance is critical to our business. We place great emphasis on operating safely, using energy and water efficiently and minimising environmental impacts from our mines. We understand the importance of creating benefits for the local communities in which we are privileged to operate, and of supporting related industry sectors. We invest in social, environmental, educational and health initiatives within our communities to create shared value that endures beyond the lifespan of our mining operations. Our commitment to sustainable development has seen us named Mining Sector Leader of the annual Dow Jones Sustainability Index in each of the past five years.

For further information, please visit www.xstratacoal.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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Xstrata plc

Xstrata Coal announces changes to Australian coal operations

Xstrata plc