NEWS RELEASE

XSTRATA INVESTOR SEMINAR

Zug, 3 December 2009

Xstrata will host an investor seminar in London over two days starting today at 11am to 1pm (GMT), with the second day on 8 December from 9am to 1pm (GMT).

The seminar will include presentations by senior operating management from Xstrata's global copper business (3 December), coal and nickel businesses (8 December) as well as presentations on Group strategy by Trevor Reid (CFO, Xstrata) and Mick Davis (CEO, Xstrata). The presentations describe Xstrata's ongoing strategy of growth and value creation through acquisition-led growth, organic growth and operational excellence.  The strategy will continue to be delivered through:

• Major and bolt-on acquisitions; 

• Transforming acquired operations into integrated global businesses;

• The accumulation of a leading portfolio of organic growth options;

• Transformational improvements in the cost and competitive positioning of Xstrata's businesses, including:

  • Sustainable improvements in the position of Xstrata's businesses on their respective industry cost curves

  • Marked growth in reserve and resource positions and, consequently, mine lives

  • The development of brown and greenfield organic growth projects

  • Accelerated restructuring and repositioning initiatives across the Group in the past 12 months 

• Implementation of world-class sustainable development standards, including significant improvements in safety, environmental and social performance; and

• A strong owner-operator culture and highly devolved management structure.

The combination of these activities has provided Xstrata with a substantial pipeline of in excess of $40 billion of organic growth projects including over $8 billion of projects currently in construction and a further $8 billion due for approval within the next twelve months.  The further development of Xstrata's organic profile will drive the next transformation of the Group through potential aggregate volume growth of over 50% by 2013 and further unit cost reductions. 

As a result, capital expenditure is expected to rise from the previous guidance of approximately $3.6 billion for 2009, to approximately $6.8 billion in 2010, including $4.9 billion of expansionary investment, primarily in coal, copper and nickel projects.

The seminars will be webcast live and as a replay, available from www.xstrata.com. 

Ends

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 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.