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8/8/2019 Xstrata Copper Corporate Profile
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Xstrata CopperCorporate Profle
8/8/2019 Xstrata Copper Corporate Profile
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About Xstrata Copper
Xstrata Copper is the ourth argest goba
copper producer with operations and projectsin eight countries and an annua attributabe
production capacity o over one miion
tonnes. Headquartered in Brisbane, Austraia,
Xstrata Copper is one o the commodity
business units within the major goba
diversied mining group Xstrata pc.
Our operations are administered by ve
separate divisions, based cose to the mining
operations, namey the North Queensand,
Minera Aumbrera, North Chie, Southern
Peru and Canada divisions. We aso have a
recycing business (Xstrata Recycing) with
pants in the United States and oces in
Canada and Asia. Our word-cass portoioo six copper deveopment projects provides
us with the potentia to doube our annua
production through organic growth over
the next ve years.
This mix o quaity producing assets,
deveopment projects and a cear strategy
geared towards urther dynamic, protabe
growth has estabished Xstrata Copper as
an exciting part o the Xstrata pc Group.
Commitment to
Sustainable Development
As a signatory to the Internationa Counci on
Mining and Metas Sustainabe Deveopment
principes, Xstrata Copper is committed
to the highest standards o heath, saety,
environmenta and community (HSEC)
perormance. In ine with this commitment,
we report pubicy on the sustainabe
deveopment perormance o our operating
divisions and projects. Our sustainabiity
reports are pubished annuay and are
widey distributed to stakehoders.
They are aso avaiabe on Xstratas
website (www.xstrata.com).
Saety and Health
The saety and heath o our empoyees and
contractors is paramount to Xstrata Copper.
We aim to operate with zero harm and
beieve that a work reated inesses and
injuries are preventabe.
To achieve our goa o zero harm, we
have put in pace poicies and standards
to ensure a controed work environment.
Responsibe eadership, skis and saety
training, risk management systems, sae work
procedures, eective investigations, reguar
audits, empoyee heath screening and the
continuous measurement and communication
o saety perormance are key eements o our
Saety and Heath Poicy.
Xstrata CopperDefnition o Purpose
Xstrata Copper is committed to
maximising vaue or Xstratas
sharehoders by successuy
growing and managing an
industry-eading portoio o
copper assets that deiver superior
returns. We wi achieve this
in a sae, environmentay and
sociay responsibe way, in open
partnerships between our peope,
with communities, governments
and other stakehoders.
Xstrata RecyclingEast Providence
Antamina
Tintaya
Minera
Alumbrera
Collahuasi
Energa Austral
El Pachn
El Morro
Lomas BayasAltonorte
Antapaccay
Las Bambas
Xstrata RecyclingSan Jos
Kidd Creek Horne Smelter
Canadian CopperRefnery (CCR)
2 XSTRATA COPPER CORPORATE PROIlE
Xstrata Copper
Strategic Objectives
Xstrata Copper is ocused
on achieving:
Injury-ree, sae work environments
Recognised eadership in
environmenta perormance
Reputation or socia responsibiity
Reaisation o the u potentia
o our peope
Achievement o the u capacity
o our physica assets
Cost competitiveness through
the cyces
Vaue creation through dynamic
growth and continuous improvement
Eective impementation o common
key systems and strategies.
8/8/2019 Xstrata Copper Corporate Profile
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XSTRATA COPPER CORPORATE PROIlE 3
Xstrata plc
Xstrata is a goba diversied mining group, isted
on the london and Swiss Stock Exchanges, withits headquarters in Zug, Switzerand. Xstratas
businesses maintain a meaningu position in
seven major internationa commodity markets:
copper, coking coa, therma coa, errochrome,
nicke, vanadium and zinc, with additiona
exposures to patinum group metas, god, cobat,
ead and siver, recycing aciities and a suite o
goba technoogy products, many o which are
industry eaders. The Groups operations and
projects span 18 countries: Argentina, Austraia,
Brazi, Canada, Chie, Coombia, the Dominican
Repubic, Germany, New Caedonia, Norway,
Papua New Guinea, Peru, the Phiippines, South
Arica, Spain, Tanzania, the USA and the UK.
Xstrata empoys approximatey 56,000 peope,
incuding contractors.
Xstratas Mission
Statement
We will grow and manage a diversifed portolio
o metals and mining businesses with the single
aim o delivering industry-leading returns or
our shareholders. We can achieve this only
through genuine partnerships with employees,
customers, shareholders, local communities
and other stakeholders, which are based onintegrity, cooperation, transparency and
mutual value-creation.
We require a our contractors to abide by
our stringent saety standards. Our ocus
on saety and the eectiveness o our systems
is evidenced by notabe improvements in
saety and heath statistics at our newy
acquired operations.
Environment
Xstrata Copper strives or industry eadership
in environmenta perormance and its
operations and projects are required to meet
and, where practicabe, exceed reevant aws,
reguations and standards.
undamenta to this approach is the setting
o environmenta improvement targets,
evauation o perormance against these
targets, pubic reporting o resuts and
independent auditing o environmentaperormance. Energy eciencies, water
recycing, biodiversity conservation and
emission contro are just some o the areas
where we are impementing measures to
improve perormance.
Xstrata Copper is the words argest recycer
o copper and precious meta bearing
eectronic scrap, and we beieve that our
recycing business makes an important
contribution to our sustainabe deveopment
goas. As the use o eectronic equipment
increases, the voume o eectronic waste has
become a serious environmenta concern.
Xstrata Recycing is heping to provide asoution by doubing eectronic scrap recycing
capacity at its Horne smeter in Canada.
Communities
The Xstrata Group sets aside a minimum
o 1% o prot beore tax each year to
und Corporate Socia Invovement (CSI)programmes to support initiatives that
contribute to the prosperity and the
sustainabe deveopment o the communities
in which we operate. In 2007, Xstrata
set aside USD102 miion to support the
communities which host its operations,
empoyees and their amiies.
At Xstrata Copper, each division or project
deveops its own CSI programme according
to oca needs and, in many cases, in
partnership with oca governments and
stakehoder groups. Our CSI investments
ocus on the areas o heath, education, job
creation, enterprise deveopment and sociaand community deveopment.
We seek to maintain broad-based ongoing
community support or our activities
throughout our operations ie cyce.
We consut with communities as eary
as possibe and estabish appropriate
mechanisms or ongoing consutation,
eedback and grievance resoution. This
incudes air and equitabe processes or
engagement with indigenous and oca
communities incuding, where reevant,
ree prior inormed consent.
Recycling
ProjectsOperations
Joint Venture Operations
Mount Isa Mines
CopperOperations
Tampakan
Frieda River
TownsvilleCopper
Refneryand PortOperations
Ernest Henry Mining
Xstrata RecyclingPenang
ArgentinaMinera Alumbrera
North Queensland
Mount Isa MinesCopper Operations
Ernest Henry Mining
Townsville CopperRefnery and PortOperations
Canada
Kidd Mine andMetallurgical Plants
Horne Smelter
Canadian CopperRefnery (CCR)
Xstrata Recycling
North ChileAltonorte
Lomas Bayas
Southern Peru
Tintaya
Projects
El Morro
Energa Austral
El Pachn
Las Bambas
Antapaccay
Frieda River
Tampakan
Joint Venture Operations
Collahuasi
Antamina
8/8/2019 Xstrata Copper Corporate Profile
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4 XSTRATA COPPER CORPORATE PROIlE
Minera Alumbrera
Bajo de la Alumbrera
Employs:Approximatey 2,200 peope, incuding
contractors.
Annual production capacity:180,000 tonnes o copper in concentrate;550,000 ounces o god in concentrate;50,000 ounces o god dore; and2,000 tonnes o moybdenum in concentrate.
Annual mining rate:30 miion tonnes o ore rom an open pit mine.
Annual plant throughput capacity:Concentrator: 40 miion tonnes o ore.
Pipeline:317 kiometre concentrate surry pipeine.
Port Operations:Owned and operated by Minera Aumbrera atPuerto Genera San Martn, Santa e province.
Xstrata Copper manages and has a 50%
controing interest in Minera Aumbrera.
Canadian companies Godcorp and Yamana
God own the remaining 50%. Minera
Aumbrera has its main oce at the mine site
in Catamarca province in northwest Argentina,
and support oces in the cities o Tucumn,
Catamarca and Buenos Aires.
Minera Aumbrera has the right to mine the
Bajo de a Aumbrera copper-god deposit by
agreement with Yacimientos Mineros de Agua
de Dionisio (YMAD), which has the tite to the
deposit. YMAD is ormed by the government
o Catamarca province and the Nationa
Tucuman University and is entited to 20%
o Minera Aumbreras net proceeds.
located at an atitude o 2,600 metres, Bajo
de a Aumbrera was deveoped at an initia
capita cost o USD1.3 biion and began
commercia production in ebruary 1998.
Since 2002, a series o ow capita cost
expansions to the concentrator have
increased pant throughput capacity by
54% to 40 miion tonnes per annum.
In December 2007, Minera Aumbreracommissioned a moybdenum pant with
production capacity o 2.000 tonnes per
annum o moybdenum in concentrate at
a capita cost o USD16 miion.
North Queensland
Xstrata Coppers North Queensand division
is headquartered in Mount Isa and comprises
the Mount Isa Mines copper mining and
processing operations, Ernest Henry openpit mine, and the Townsvie copper renery
and port operations. The divisions integrated
operations have the capacity to produce
300,000 tonnes o rened copper per annum.
Mount Isa Mines Copper Operations
Employs:Approximatey 2,600 peope, incudingcontractors.
Annual production capacity:190,000 tonnes o copper in concentrate romunderground mining; and300,000 tonnes o copper anode romthe smeter.
Annual mining rate:6.5 miion tonnes o ore rom two undergroundmines (Enterprise and X41).
Annual plant throughput capacity:Concentrator: 7 miion tonnes o ore; andCopper smeter: 1.19 miion dry metric tonneso concentrate eed.
Mount Isa Mines operates two separate
mining and processing streams copper and
zinc-ead-siver orming one o the argest
underground mining operations in the word.
The North Queensand division oversees the
copper mining and processing operations.
Through its vision to create a secure uture
or Mount Isa, Xstrata Copper has invested
more than USD144 miion in new projects
since 2003. Most recenty it has competed
an expansion o the Mount Isa copper
smeter which has increased its capacity rom
240,000 to 300,000 tonnes per annum o
copper anode.
The Enterprise mine is the most recenty
deveoped copper ore source at Mount Isa and
is Austraias deepest mine, with an interna
shat which reaches a depth o 1,900 metres.
A pre-easibiity study is currenty underway
at Mount Isa to evauate underground massmining options. The mass mining studies aim
to progressivey increase the Mount Isa mine
hoisting and miing rates to 7 miion tonnes
per annum. A u easibiity study is expected
to start in 2009.
Ernest Henry Mining
Employs:Approximatey 610 peope, incudingcontractors.
Annual production capacity:115,000 tonnes o copper in concentrate; and120,000 ounces o god in concentrate.
Annual mining rate:11 miion tonnes o ore rom an open pitmining operation.
Annual plant throughput capacity:Concentrator: 11 miion tonnes o ore.
Ernest Henry Mining began commercia
production in 1998. The open pit mining
operation produces copper concentrate
containing god which is either trucked to
Mount Isa or smeting or sent to Townsvie
or export.
At the end o 2006, a pre-easibiity study
began to evauate the start o underground
mining at Ernest Henry, thus potentiay
extending the mine ie beyond 2010.
Positive pre-easibiity resuts ed to the
approva, in November 2007, o investment
o AUD26 miion to construct the rst
stage o an underground decine that wi
aciitate eary access to underground ore and
improve the continuity between open cut and
underground mining.
Construction o the underground decine
began in ebruary 2008 and is expected to be
compete in eary 2009. A easibiity study to
assess the viabiity o u scae underground
mining operations began in eary 2008 and isrunning in parae with the deveopment o
the rst stage o the decine.
Townsville Copper Refnery
and Port Operations
Employs:Approximatey 220 peope, incudingcontractors.
Annual production capacity:300,000 tonnes o copper cathode.
The Townsvie copper renery is one o the
words eading eectroytic copper reneries.
It produces copper cathode rom copper
anode produced at the Mount Isa smeterand other smeters, such as Xstrata Coppers
Atonorte smeter in Chie. The renery uses
Xstratas ISA PROCESS technoogy.
In 2005, the renery underwent a
AUD3 miion capita improvement project to
convert its ue source rom iquid ue to coa
seam gas. This has improved eciencies and
reduced greenhouse gas emissions. A renery
expansion rom 280,000 to 300,000 tonnes
per annum o copper cathode was competed
during the second ha o 2007.
The port operations export copper cathodes
and minera concentrates rom the NorthQueensand division and ertiiser or third
party customers through the Townsvie Port.
In addition to Xstrata Copper product, the
port operations aso hande concentrates
rom mining operations in the NW Mineras
Province o Queensand.
Xstrata Copper divisions
Haul trucks leaving the Minera Alumbrera open pit mine Mine Planning Engineer, Jade Munari, prepares or her
shit at Mount Isa Mines, Australia
8/8/2019 Xstrata Copper Corporate Profile
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XSTRATA COPPER CORPORATE PROIlE 5
Canada
The Xstrata Copper Canada division comprises
the Kidd mining and metaurgica compex,
the Horne smeter, the Canadian Copper
Renery (CCR) and Xstrata Recycing. Thedivisions main oce is ocated in Toronto.
Kidd Mine and Metallurgical Plants
Employs:Approximatey 1,350 peope, incudingcontractors.
Annual production capacity:50,000 tonnes copper in concentrate;135,000 tonnes copper in cathode;145,000 tonnes o zinc meta;Over 3 miion ounces siver; and575,000 tonnes o suphuric acid.
Annual mining rate:2.7 miion tonnes o copper/zinc ore.
Annual plant throughput capacity:Concentrator: 2.7 miion tonnes copper/zinc oreand 0.9 miion tonnes nicke ore;Copper smeter: 455,000 tonnes o eed; andZinc pant: 285,000 tonnes o eed.
In operation since 1965, the Kidd mining and
metaurgica operations in Timmins, Ontario,
produce copper, zinc, indium, cadmium,
siver bearing renery simes, copper-nicke
carbonate, iquid suphur dioxide and
suphuric acid.
The Kidd Mine is ocused on deveoping and
sustaining economic mining pans or the
Kidd Creek orebody, which is currenty minedthrough two separate shats known as No. 2
and No. 4. Production operations reached a
depth o 8,800 eet (2,725m) in 2007, making
the operation the deepest base meta mine
in the word.
The Kidd metaurgica site, ocated
27 kiometres rom the mine, processes
both company-sourced and purchased eeds.
Currenty approximatey 50% o its eed is
acquired rom third parties. The metaurgica
site consists o a concentrator processing
the copper-zinc ore rom the Kidd Mine and
the copper-nicke ore rom Xstrata Nickes
Montcam Mine. It aso has a copper smeter
and renery, a zinc pant, and cadmium,
indium and suphuric acid by-product pants.
The Kidd smeter, one o the words ceanest
smeting operations with 98% suphuric
dioxide emission capture, aso has a nicke
recovery circuit. The copper renery uses
Xstrata Technoogys Kidd Process copper
rening technoogy.
Horne Smelter
Employs:Approximatey 550 peope, incudingcontractors.
Annual production capacity:180,000 tonnes o copper anode; and600,000 tonnes o suphuric acid.
Annual plant throughput capacity:840,000 tonnes o concentrates and recycabematerias.
In operation since 1927, the Horne smeter
is ocated in Rouyn-Noranda, Qubec and
is the argest processor o copper and
eectronic scrap in North America. The
smeter is a custom copper smeter whichuses both copper concentrates and precious
meta-bearing recycabe materias as its
eedstock to produce a 99.1% copper anode.
Copper anodes rom the Horne are raied to
Xstrata Coppers CCR renery in Montrea to
be converted into copper cathodes.
One o the notabe eatures o the Horne
smeter is its abiity to process a wide-range
o eeds, incuding copper and precious meta
bearing eectronic equipment provided by
Xstrata Recycing. In 2007, the voume o
recyced eeds procured by Xstrata Recycing
or processing at the Horne smeter was up by
26% to 120,000 tonnes.
Canadian Copper Refnery (CCR)
Employs:Approximatey 590 peope, incudingcontractors.
Annual production capacity:375,000 tonnes o copper cathode; andPrecious metas: approximatey 30 miionounces o siver and 1 miion ounces o god(depending on simes).
The CCR renery, ocated in Montrea,
Quebec, processes anodes rom three
principa suppiers Horne smeter, Atonortesmeter and CVRD Incos Sudbury operations
and has been in operation since 1931.
The pant is equipped to process anodes
that are high in bismuth, antimony, ead and
nicke. The renerys precious meta simes
processing pant obtains eed rom internay
generated as we as externay purchased
simes. The CCR renerys products incude
copper cathodes, god, and siver and other
speciaty metas and chemicas, incuding
seenium, teurium, copper suphate, nicke
suphate and a concentrate o patinum
group metas.
Xstrata Recycling
Employs:Approximatey 70 peope, incuding contractors.
2007 throughput:120,000 tonnes o recycabe materias.
Xstrata Recycing is the words argest
recycers o metaic copper and eectronic
scrap incuding printed circuit boards,processor chips and mobie phones. The
business operates two samping and recovery
pants ocused on eectronics recycing in San
Jose, Caiornia; and East Providence, Rhode
Isand. These two pants sampe high vaue
eectronic scrap materias. Commercia oces
are maintained in Toronto, Ontario; East
Providence, Rhode Isand; San Jose, Caiornia;
Zug, Switzerand; and Penang, Maaysia.
The Maaysia oce sources copper and
precious meta-bearing scrap streams rom
eectronics manuacturers in Asia, which are
shipped to recycing aciities in Caiornia and
Rhode Isand or samping, then sent as eed
to the Horne smeter in Canada.
In January 2008, Xstrata Recycing announced
pans to doube eectronic scrap recycing
capacity at the Horne smeter, providing
the smeter with the capacity to receive and
process 100,000 tonnes per year o eectronic
scrap, thus contributing to the soution or
the growing environmenta concern o
eectronic waste.
Xstrata Copper divisions
Development Miner, Darryl Booth, conducts an
underground mark-up survey at Kidd Mine in Canada
Copper cooling vats at the Horne Smelter in Canada
Stock piles o recyclable materials are converted into
copper anode at the Horne Smelter in Canada
8/8/2019 Xstrata Copper Corporate Profile
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6 XSTRATA COPPER CORPORATE PROIlE
North Chile
Xstrata Coppers North Chie division
comprises the Atonorte metaurgica aciity
and the lomas Bayas open pit mine in
northern Chies Antoagasta Region. TheNorth Chie division aso manages Xstratas
44% interest in the Coahuasi Joint Venture
in northern Chies Tarapac Region. The
divisions main oce is in the port o
Antoagasta, cose to the operations.
Altonorte metallurgical acility
Employs:Approximatey 1,000 peope incudingcontractors.
Annual production capacity:290,000 tonnes anode copper;11 miion pounds o moybdenum; and800,000 tonnes o suphuric acid.
Annual plant throughput capacity:900,000 tonnes o copper concentrate; and14,000 tonnes o moybdenum concentrate.
The Atonorte custom metaurgica aciity
is ocated near the port o Antoagasta in
the words argest copper-producing region.
The words tenth argest copper smeter, the
metaurgica aciity aso produces suphuric
acid and moybdenum oxides rom its
moybdenum concentrate roasting pant.
In eary 2008 a smeter dust treatment
pant was commissioned.
A USD89 miion expansion is underway to
increase the smeters annua production
capacity by amost one third to 380,000
tonnes o copper anodes and 1.1 miion
tonnes o suphuric acid by 2009. In addition,
a easibiity study has started into the
instaation o a moybdenum eaching pant
and the reurbishment o an ide roasting
pant to doube moybdenum concentrate
roasting capacity.
A series o environmenta upgrades, incuding
the instaation o a new acid pant, wi initiay
increase suphide dioxide emissions capture
rom 93.5% to 95%, and then to 98% by
2010, converting Atonorte into one o the
words eading metaurgica aciities.
Lomas Bayas Mine
Employs:Approximatey 1,160 peope, incudingcontractors.
Annual production capacity:70,000 tonnes o copper in cathode.
Annual mining rate:49.2 miion tonnes o materia rom one openpit mine.
Annual crushing capacity:14 miion tonnes o ore.
located in the Atacama Desert, 120 kiometres
rom the port o Antoagasta in northern
Chie, lomas Bayas open pit copper mine
is one o the words owest-grade copper
operations with average grades in 2007 o
0.27% soube copper.
The oxide copper ores o lomas Bayas
are ast eaching and ow acid consuming.
Higher grade ore is crushed and eached in
heaps. low grade ore is sent directy romthe mine to dump each. Copper is recovered
rom soution by sovent extraction and
eectro-pated into high quaity cathodes.
Cathodes are transported to Antoagasta
and shipped to na customers.
An expansion to 75,000 tonnes o copper
cathodes per annum wi be competed in the
second ha o 2008, requiring investment o
USD70 miion. The lomas Bayas mine ie has
been extended by eight years to 2020 by the
incorporation o the nearby lomas II deposit
(ormery known as ortuna de Cobre) into
the mine pan.
Southern Peru
The Southern Peru division was ormed in
November 2007 and comprises the Tintaya
copper mine in Cusco Region, the nearby
Antapaccay deveopment project, and the
las Bambas deveopment project in
neighbouring Apurimac Region. The Southern
Peru division is aso responsibe or managing
Xstrata Coppers 33.75% interest in the
copper operations at the Antamina Joint
Venture. The divisions headquarters are in
the city o Arequipa, cose to operations.
Tintaya Mine
Employs:Approximatey 1,300 peope, incudingcontractors.
Annual production capacity:85,000 tonnes o copper in concentrate;35,000 tonnes o copper cathode; and25,000 ounces o god in concentrate.
Annual mining rate:11 miion tonnes o ore rom an open pit mine.
Annual plant throughput capacity:Concentrator: 6.8 miion tonnes o ore; andleaching-SX/EW pant: 3.6 miion tonnes o ore.
The Tintaya open pit mine is ocated at
4,100 metres above sea eve in the Yauri
district o Espinar Province in southern
Perus Cusco Region. The orebody presents
both copper suphide and copper
oxide mineraisation.
The copper suphides are treated in a
conventiona crushing, grinding and fotationpant to produce copper in concentrates.
The copper oxides are treated in a combined
heap/agitation eaching process oowed by
sovent extraction/eectrowinning (SX/EW)
to produce copper cathodes. Both copper
concentrates and copper cathode products
are trucked 370 kiometres to Matarani port
in Arequipa department, and then shipped
to wordwide customers.
Inormation about Antapaccay and las Bambas
projects can be ound in the Xstrata Copper
Projects section (page 7).
Xstrata Copper divisions
Casting wheel operator, Anbal Contreras, at Altonorte
metallurgical acility in Antoagasta, Chile
Haul trucks undergo routine maintenance inspections
at Lomas Bayas mine
The Tintaya Foundation supports local Ilama breeders
through its corporate social involvement program
8/8/2019 Xstrata Copper Corporate Profile
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XSTRATA COPPER CORPORATE PROIlE 7
Xstrata Copper projects
El Morro, Chile
The E Morro copper-god exporation project
in Chie is a joint venture between Xstrata
Copper (70%) and Metaica Resourceslimited (30%). The project consists o two
porphyry systems on the property the
E Morro and la ortuna deposits.
A easibiity study was conducted in 2007
based on a mineabe resource o 487 miion
tonnes o ore grading 0.56% copper and
0.44% god at the la ortuna deposit.
The easibiity study, competed in January
2008, outined initia capita investment o
USD2.5 biion to construct an operation that
woud produce 195,000 tonnes o copper
and 355,000 ounces o god per annum
over the rst ve years.
Energa Austral, Chile
Energa Austra is an eectricity generation
project ocated in the Aysn Region o
southern Chie with the potentia to generate
more than 1,000 MW. A easibiity study is
being conducted into the construction o
three hydroeectric dams at Ro Cuervo, Rio
Banco and lago Condor. Energa Austra
expects to submit an environmenta impact
study or the initia Ro Cuervo hydroeectric
dam in the second ha o 2008.
El Pachn, Argentina
E Pachn is a bi-nationa copper projectocated in northwest Argentinas San Juan
Province, ve kiometres rom the Chiean
border. A easibiity study was competed by
previous owners in 1998.
In March 2008, Xstrata Copper pubished
its rst Minera Resource estimate or
E Pachn o 980 miion tonnes at grades
o 0.58% copper and 0.016% moybdenum
in the Measured, Indicated and Inerred
categories, using a 0.3% copper cut-o
grade. Recent work has ocused on
re-evauating previous studies through
the competion o a pre-easibiity study
in 200708.
Las Bambas, Peru
In August 2004, Xstrata was granted up to six
years to compete exporation and easibiity
work at the las Bambas copper project in
Perus Cotabambas and Grau Provinces,
during which time Xstrata may exercise the
option to deveop the mining concessions into
a mining project.Exporation at las Bambas commenced in
March 2005 oowing extensive consutation
with oca communities. By the end o 2007,
an accumuated tota o 241,000 metres
o resource driing had been competed
on the project. In March 2008 Xstrata
Copper pubished a 19% increase to Minera
Resources at las Bambas o 860 miion
tonnes at a grade o 0.93% copper and
0.02% moybdenum, using a 0.4% copper
cut-o grade. The project is at the pre-
easibiity stage.
O Xstratas payments to the Peruvian
Government to secure the project, an initia
USD45.5 miion was aocated to a trust und
or the benet o communities in Cotabambas
and Grau Provinces. This unds heath,
education, inrastructure and sustainabe
deveopment projects in the oca area and
is in addition to Xstrata Coppers Corporate
Socia Invovement programme at las Bambas.
Antapaccay, Peru
A positive pre-easibiity study into the stand-
aone deveopment o the Antapaccay project,
ocated ess than 10 kiometres rom Tintaya,
was competed in 2007. The pre-easibiity
work, which incuded 40,000 metres
o in driing, has ed to an updated
Minera Resource estimate or Antapaccay
o 520 miion tonnes at a grade o 0.72%
copper and minor god vaues, using a 0.4%
copper cut-o grade.
A na easibiity study into the deveopment
o Antapaccay is expected to be competed
in 2008 aong with a potentia decision
regarding its construction.
Frieda River, Papua New Guinea
In January 2007, Xstrata Copper exercised an
option to obtain a 73.7% interest in the high
grade rieda River copper-god project in a
joint venture with Highands Pacic limited
(16.4%) and Japans OMRD (9.9%). Xstrata
Copper subsequenty assumed management
contro and competed a scoping study,
incuding metaurgica studies, inrastructure
denition and exporation.
The current work programme incudes urther
driing to improve the condence categoriesin the resource inventory, urther metaurgica
testing, environmenta baseine studies and
consutation with oca communities.
Tampakan, Philippines
On 30 March 2007, Xstrata Copper assumed
management contro o the Tampakan
project through its Phiippine-based aiate
Sagittarius Mines, Inc (SMI) ater exercising its
option in December 2006 to acquire 62.5%
o the controing interest in the project.
Activities in 2007 ocused on integrating
SMI into the Xstrata Copper organisation,
strengthening community deveopment and
stakehoder engagement programmes, and
competing additiona technica studies to
suppement previous pre-easibiity work
undertaken by Indophi Resources.
In December 2007, Xstrata Copper pubished
a new Measured, Indicated and Inerred
Resource estimate or Tampakan o 2.2 biion
tonnes at a grade o 0.6% copper, 0.2 grams
per tonne god and 0.007% moybdenum
using a 0.3% copper cut-o grade.
Xstrata Copper projects
Geological samples at El Morro project, Chile
The Tierra de Nios centre in Fuerabamba is one
o the community initiatives supported by the
Las Bambas project
Geology student, Titus Saiwa, and geologist,
Misel Paulus, examine core samples at Frieda River,
Papua New Guinea
8/8/2019 Xstrata Copper Corporate Profile
8/8
Joint Venture Operations
Collahuasi Mine (on a 100% basis)
Employs:Approximatey 4,500 peope, incuding
contractors.
Annual production capacity:490,000 tonnes o copper in concentrate;50,000 tonnes o copper in cathode; and4,500 tonnes moybdenum oxides.
Annual mining rate:65 miion tonnes o ore rom three open pits:Ujina, Rosario and Huinquintipa.
Annual plant throughput capacity:Concentrator: 49 miion tonnes o ore; andleaching-SX/EW process: 6.5 miion tonneso ore.
Pipeline:
203 kiometre pipeine to moybdenum pantand port aciities at Punta Patache.
Port Operations:The port aciities at Punta Patache are ownedand operated by Coahuasi.
The giant Coahuasi open pit operation, the
words th argest copper mine, is ocated
on the Andean pateau o northern Chies
Tarapac Region. The mine is operated by
a joint venture company, Compaa Minera
Dona Ins de Coahuasi SCM. The joint
venture partners are Xstrata (44%), Ango
American (44%), and a group o Japanese
companies headed by Mitsui & Co. ltd (12%).
Xstrata Copper is represented on the Board
and Executive Committee o Coahuasi.
The operation is ocated at atitudes o 4,000
metres to 4,600 metres above sea eve
and consists o two major porphyry copper
deposits Ujina and the Rosario custer andthe smaer Huinquintipa deposit, containing
a mixture o suphide and oxide copper
mineraisation. The suphide ore is processed
in the concentrator pant to produce copper
in concentrates and the oxide ore is eached
and processed in the SX/EW pant to produce
copper cathodes. In ate 2005, Coahuasi
competed construction o a moybdenum
pant at its port aciities in Punta Patache.
One o the words argest copper resources,
in January 2008 Coahuasi announced an
increase to its tota Minera Resource o 28%
to 5.19 biion tonnes at an average grade o
0.83% copper. This signicant resource wisupport the business strategy to more than
doube annua production to over 1 miion
tonnes o copper progressivey by 2014.
Antamina Mine (on a 100% basis)
Employs:Approximatey 1,400 peope, incudingcontractors.
Annual production capacity:360,000 tonnes o copper in concentrate(average or the ast three years);250,000 tonnes o zinc in concentrate; and7,000 tonnes o moybdenum in concentrate.
Annual mining rate:36 miion tonnes o copper-zinc ore romopen pit mine.
Annual plant throughput capacity:32.5 miion tonnes o ore.
Pipeline:300 kiometre concentrate surry pipeineto port.
Port Operations:Owns and operates Puerto lobitos at Huarmey.
The words ourth argest zinc and ninth
argest copper mine, Antamina is ocated in
the Andes in northern Perus Ancash Region
at an eevation o 4,300 metres. It is operated
by a joint venture company, Compaa Minera
Antamina S.A. The joint venture partners
are Xstrata (33.75%), BHP Biiton (33.75%),
Teck-Cominco limited (22.5%) and Mitsubishi
Corporation (10%). Xstrata Copper andXstrata Zinc are represented on the Board and
Advisory Committee o the company.
The Antamina open pit mine began
operations in 2001 or investment o over
USD2.2 biion, the argest mining investment
in Perus history. The operations concentrator
is considered to be the words argest
poymetaic processing pant, treating copper,
zinc, moybdenum, siver and ead ores.
Antamina has an expected mine ie o
over 15 years.
XST0982 04/08
Xstrata Queensland LimitedABN 69 009 814 019
Xstrata Copper Head Ofce leve 9 Riverside Centre 123 Eage Street GPO Box 1433 Brisbane Queensand Austraia 4001 Te +61 7 3295 7500 ax +61 7 3295 7640
Xstrata Copper Chile Mariano Snchez ontecia 310 Piso 4 las Condes Santiago Chie Te +56 2 478 2200 ax +56 2 478 2299
Xstrata Copper Argentina Av. leandro N. Aem 853 22 C1001AAD Buenos Aires Argentina Te +54 11 4316 8300 ax +541 1 4316 8390
Xstrata Copper Peru Monte Rosa 271 O. 7B Centro Empresaria Urbanizacin Chacaria de Estanque Surco lima Peru Te +511 372 2223 ax +511 217 1111
Xstrata Copper Canada irst Canadian Pace 100 King St West Suite 7200 P.O. Box 405 Toronto ON M5X 1E3 Te +1 416 775 1200 ax +1 416 775 1290
www.xstrata.com
Joint Venture Operations
Collahuasis, Lucio Condori, inspects plants or
environmental rehabilitation projects in Tarapac
Region, Chile
Water monitoring at Antamina Ore is transported by conveyor belt at Collahuasi Mine