Xstrata Plc formed Xstrata Copper in January 2004 to manage the Group’s growing portfolio of global copper operations and development projects. Charlie Sartain was appointed as Chief Executive of the newly formed Commodity Business Unit.
Since then Xstrata Copper has doubled its annual mined copper production, jumping from 10th to 4th spot in the ranks of world copper producers.
The first step towards becoming a global copper producer was taken in July 2003 when Xstrata acquired the Australian mining company MIM Holdings, and its copper assets in North Queensland, Australia and the Alumbrera copper-gold mine in Catamarca province, Argentina. Combined, these assets provided almost 500,000 tonnes a year of copper in concentrate.
Southern Peru
In August 2004 Xstrata Copper succeeded in its bid to acquire an option to develop the highly prospective Las Bambas copper district, giving us a foothold in southern Peru. Our initial analysis of regional business development opportunities resulted in the acquisition in May 2006 of the Tintaya copper mine, also in southern Peru, from BHP Billiton. These two assets have provided a significant platform for Xstrata Copper to grow a substantial mining business in southern Peru. Xstrata Copper’s total Mineral Resources in the region, including the Tintaya orebody and the Antapaccay, Coroccohuayco and Las Bambas deposits, have now grown to over 2.1 billion tonnes at an average grade of 0.77% copper.
Falconbridge
Just a few months after the Tintaya acquisition, Xstrata took control of Canadian mining company Falconbridge on 21 August 2006. This acquisition continued the rapid transformation of Xstrata Copper into a major player in the copper industry. The former Falconbridge copper operations established a strong centre for Xstrata Copper in northern Chile, with the Altonorte smelter, the Lomas Bayas mine and a 44% share of the giant Collahuasi mine. The acquisition also strengthened our position in Peru with joint ownership of the Antamina mine through a 33.75% shareholding and established a significant presence for Xstrata Copper in Canada with full ownership of the Kidd Mine and Metallurgical Sites, the Horne smelter, the Canadian Copper Refinery (CCR) and Noranda Recycling.
Xstrata Copper today
Today Xstrata Copper has operations and projects in eight countries across the globe. The business unit’s mining and metallurgical operations are managed through five operating divisions that are centred near the operating sites in Argentina, Australia, Canada, Chile and Peru. In addition, we have a world class portfolio of development projects to replenish and grow our production pipeline: El Pachón in Argentina, Las Bambas and Antapaccay in Peru, Tampakan in the Philippines and Frieda River in Papua New Guinea.
Our portfolio of near term expansion projects will increase our annual copper production by at least 50% to 1.5 million tonnes by the end of 2014 through the construction of five brownfield expansion projects and the Las Bambas greenfield project.