Las Bambas and Antapaccay Projects

Southern Peru

Overview of Southern Peru Division

The development of the Antapaccay satellite deposit will convert the existing Tintaya operation into a long life, low cost asset and increase its production by 60%. The combined development of the Antapaccay and Las Bambas Projects will transform Xstrata Coppers assets in Southern Peru into a world class operating division. A total capital investment of US$5.7 billion will be made to develop the Antapaccay and Las Bambas Projects, resulting in a five-fold increase in Xstrata Coppers production in the region to over 500,000 tonnes of fine copper per annum from the end of 2014. Xstrata Copper holds Mineral Resources in the region of over 2 billion tonnes at an average grade of 0.81% copper, including the early stage, high grade Coroccohuayco Project, located 10 kilometres from Tintaya. Xstrata Coppers innovative standard concentrator design concept will be applied at both Las Bambas and Antapaccay resulting in reduced capex, operational costs and long-lead delivery times. Copper concentrates from Las Bambas will be pumped through a 215 kilometre pipeline to a molybdenum and filter plant at Tintaya-Antapaccay and then transported by railroad to Matarani Port. Las Bambas will be one of the two largest copper greenfield projects to be commissioned globally during the next five years. The development of the world class, long life and low cost Las Bambas and Antapaccay Projects will make a significant contribution to the transformation of Xstrata Coppers overall cost and production profile during the next four years.

Cities and Towns Operations & Projects National Reserves Access Roads Projected Railroad Railroad Concentrate Pipeline

Located 150 kilometres apart, the Las Bambas and Antapaccay Projects will benefit from important synergies that will reduce capital and operating costs in the form of transport and port infrastructure and logistics; standardized plant design, construction and operation; and support functions.

Apurimac Region

Ayacucho Region

Cotahuasi National Reserve

Las Bambas & Antapaccay filter plants

Puno Region

Salinas & Aguada Blanca National Reserve

Moquegua Region

October 2010

October 2010

Tintaya - Antapaccay
The Antapaccay copper deposit is located 10 kilometres from Xstrata Coppers Tintaya operation in Espinar Province, Cusco Region at an altitude of around 4,000 metres. Investment: US$1.47 billion Two open pits 70,000tpd (single line) sulphide grinding/flotation concentrator Initial production of 160,000tpy copper in concentrates Initial C1 cash costs including by-product credits of 90c/lb Initial mine life of 20 years Production start up mid 2012 Current Mineral Resource: 720Mt at a grade of 0.56% copper, plus gold credits, using a 0.2% copper cut-off grade

Las Bambas
The greenfield Las Bambas Project is located in Cotabambas and Grau Provinces, Apurmac Region, at an altitude of over 3,700 metres. Investment: US$4.22 billion Three open pits 140,000tpd (two line) sulphide grinding/flotation concentrator Initial production of 400,000tpy copper in concentrates Initial C1 cash costs including by product credits of 60c/lb Initial mine life of 18 years Production start up mid 2014 Current Mineral Resource: 1.13Bt at a grade of 0.77% copper, plus gold, silver and molybdenum credits, using a 0.3% copper cut-off grade

Las Bambas and Antapaccay Project timelines

2004

2005 2006
Acquisition of Tintaya, including Antapaccay deposit Resource definition drilling and PFS commences

2008
Commence Feasibility Study Procure grinding mills, gearless motor drives and crusher

2009
Feasibility Study complete

2010
Environmental and Social Impact Assessment approved Major earthworks completed Pour first concrete

2011
Plant erection starts Pre-stripping

2012
Commissioning and ramp up

2013
Full production

2014

2015

ANTAPACCAY

LAS BAMBAS

Acquisition of Las Bambas

Exploration and initial evaluation commences

Commence Feasibility Study

Feasibility Study completed and detailed engineering starts Procure grinding mills, gearless motor drives and primary crusher

Environmental and Social Impact Assessment approved Major earthworks underway

Plant construction starts

Pre-stripping

Commission and ramp up

Full production

For further additional information contact: Emily Russell - Manager Corporate Communications - Xstrata Copper Tel: +56 2 478 2204 - Email: erussell@xstratacopper.com - www.xstratacopper.com

October 2010