Highlights:

• Record annual production from our Australian thermal coal operations following the successful commissioning of the greenfield Mangoola mine on budget and ahead of schedule, the expansion of Newlands Underground thermal coal operation and a strong second half performance;
• Record production of mined nickel, including first ore ahead of schedule from the Kikialik expansion at Raglan mine and record nickel metal volumes from a second successive record year at Nikkelverk;  
• We completed an expansion to extend the life of the Kidd copper mine in Canada on time and within budget and began commissioning the expansion at the Antamina copper-zinc joint venture in Peru at the end of 2011;
• During the second half, we commissioned the 120,000 tonnes per annum Black Star Deeps and 40,000 tonnes per annum Handlebar Hill zinc-lead projects on schedule and on budget;
• Our Falcondo ferronickel operation in the Dominican Republic exceeded expectations to operate at an annual rate of almost 15,000 tonnes per annum, following its restart in Februaryy;
• We approved seven key projects representing total capital expenditure of $2.6 billion during the year:
  • The 7 million tonnes per annum Ulan Open Cut thermal coal project in Australia;
  • The Tweefontein optimisation coal project in South Africa, which will, subject to receipt of final environmental approvals, produce 4 million tonnes per annum of thermal coal;
  • The 6,000 tonnes per annum Fraser Morgan nickel mine and expansion to 40,000 tonnes per annum at Raglan nickel mine, both in Canada;
  • Our share of capital to expand the joint venture Cerrejón thermal coal operation in Colombia to 40 million tonnes per annum;
  • The 126,000 tonnes per annum greenfield Lady Loretta zinc project in the Mount Isa region, Australia; and 
  • Mount Margaret, a 30,000 tonnes per annum copper project in Australia.
• During 2011, we announced significant increases in mineral resource estimates at the Antamina copper and zinc mine and Las Bambas and Coroccohuayco copper projects in Peru, the El Pachón copper project in Argentina and the Frieda River copper-gold project in Papua New Guinea.

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 contacts:

Alison Flynn
Telephone +44 20 7968 2838
Mobile +44 7769 314374
Email aflynn@xstrata.com

Investors & analysts

Martin Fewings
Telephone +44 20 7968 2893
Mobile +44 7990 591536
Email mfewings@xstrata.com

Caroline Yates
Telephone +44 20 7968 2878
Mobile +44 7824 826546
Email cyates@xstrata.com

Notes to editors

About Xstrata plc

Xstrata is a major producer of a range of essential commodities used in everything from constructing buildings and delivering electricity, to developing jet engines and mobile phones. We are one of the top five global producers of copper, thermal and metallurgical coal, ferrochrome, zinc and nickel and we also produce silver, lead, platinum, gold, cobalt and vanadium.

Founded in 2002 and headquartered in Switzerland, Xstrata plc now operates in over 20 countries and employs over 70,000 people at more than 100 operations and projects around the world. For more information, visit www.xstrata.com

Copper

Copper production was 3% lower than in 2010 as we enter a transition period in which a number of operations are approaching the end of their mine life and new lower cost production is on track to commence from the second half of 2012, notably at Antapaccay.  

We increased copper in concentrate production at Ernest Henry by 34% compared to 2010 to reach a total of 100,300 tonnes.  Production from the final high grade ore zone of the open pit operation and processing stockpiled ore boosted volumes, despite mining less material overall as a result of our ongoing project to convert the operation into an underground mine.

Our share of copper in concentrate production at Antamina increased by 11% to 112,600 tonnes, due to higher mill throughput as a result of de-bottlenecking initiatives and higher grades and recoveries.
Our Lomas Bayas operation benefited from increased run-of-mine (ROM) tonnes from the new Fortuna de Cobre pit as part of the Lomas 2 project. At Tintaya in Peru, we mined and processed higher grade sulphide ore resulting in increased copper production.

Production at our Alumbrera mine decreased by 17% to 116,700 tonnes compared to the previous year, primarily as a result of delayed access to high grade zones in the mine caused by geotechnical events in the latter part of 2010.  Our share of production from the Collahuasi joint venture reduced by 10% to 199,400 tonnes mainly due to lower milled copper grades, extended maintenance and repairs to the main ore conveyor belt and adverse weather conditions in the first and third quarters of the year.  Our Mount Isa operations produced 6% less copper in concentrate than in 2010 due to lower grades and reduced production from the Enterprise mine.  At our Kidd underground mine in Canada, production of copper concentrate was affected by lower grades and volumes due to restricted access caused by two seismic events in the second half of the year.

Total gold production was marginally lower in 2011 at 517,900 ounces compared to 524,800 ounces in 2010 as improved ore grades at Ernest Henry largely offset lower head grades and recoveries at Alumbrera.

Our Mount Isa smelter and Altonorte custom smelter both achieved record production in 2011. However, total combined custom and mined copper cathode production decreased by 9% to 650,900 tonnes in 2011 as a result of the closure of the Kidd metallurgical plant in May 2010 and a temporary plant shutdown at the Townsville refinery in the first quarter of 2011 in response to a severe tropical cyclone in North Queensland.