Highlights

• Record quarterly thermal* coal production, 13% higher than the same period in 2010 and 22% higher than the second quarter of 2011
• Increased volumes of nickel and zinc metal and lead in concentrate production compared to same period last year
• Base metals and coal operations remain on track to deliver a stronger second half performance compared to first half 2011
• Thermal coal prices remain strong with 1 October annual contracts settled with long-term Japanese customers at $126.50 per tonne FOBT (6322GAR basis), following major settlements for the year from 1 April concluded at $129.85 per tonne
• Major growth projects remain on time and on budget with Antamina (copper-zinc), Collahuasi 150ktpd (copper), Koniambo (nickel), Antapaccay (copper) and Ravensworth North (thermal coal) projects on track to start production in 2012
• Four growth projects were approved during the period:
• A $1.3 billion expansion project (Xstrata share 33.3%) to increase saleable production and export capacity at the Cerrejón thermal coal operation in Colombia from 32 million tonnes to 40 million tonnes per annum by 2015
• A $530 million expansion to mining operations and infrastructure at the world-class Raglan operation in Quebec, Canada to produce 40,000 annual tonnes of nickel in concentrate by 2016
• The $119 million Fraser Morgan project to extend the mine life and further exploit polymetallic orebodies at the Fraser complex in Sudbury, Canada
• The AUD246 million ($239 million) construction of the greenfield Lady Loretta zinc-lead-silver mine in north-west Queensland, Australia to produce an annual average of 126,000 tonnes of zinc in concentrate and 40,000 tonnes of lead in concentrate over 10 years
• Xstrata Coal acquired 100% of privately-owned First Coal Corporation  for around CAD147 million ($153 million) in August, and in October agreed to acquire the contiguous Lossan deposit from Cline Mining Corporation for CAD40 million, providing access to coking coal exploration leases in the Peace River Coalfield, British Columbia, Canada
• The shareholders in Minera Alumbrera copper-gold mine in Argentina (Xstrata share 50%) secured an exclusive option to acquire Yamana’s 100% interest in the Agua Rica project, a feasibility stage project located approximately 35 kilometres from the Alumbrera mine
• Xstrata Zinc completed its acquisition of the Hackett River and Wishbone exploration properties, in the Western Kitikmeot region of Nunavut, Canada, from Sabina Gold and Silver Corp. for a cash consideration of CAD50 million in October
• Xstrata Zinc Canada agreed to purchase the remaining 23.6% interest in the Pallas Green property in the Republic of Ireland from Minco plc for $19.4 million in July, subject to approvals
• Xstrata Mount Isa Mines secured a long-term supply of electricity and gas from the Diamantina Power Station consortium to 2030, with gas supply and pricing fixed until 2023, to meet forecast demand for the life of current and planned copper and zinc-lead operations in north-west Queensland, Australia.

In the period from 1 July 2011, Xstrata’s operating and financial performance continues to be strong and the company’s financial position remains robust. Significant headroom has been maintained within Xstrata’s corporate debt facilities and $6.8 billion remains undrawn.  The modest debt maturities within the next two years, together with a good spread of maturities over subsequent years continue to underpin the Group’s financial position.

Xstrata’s preliminary results for the year ending 31 December 2011 will be announced on 7 February 2012.

* excludes semi-soft coal

To see the complete report, please visit Xstrata plc web site.

Xstrata Copper

Total mined copper production in the third quarter of 2011 was in line with the second quarter but 4% lower than the same period of 2010. Production at Collahuasi was impacted by planned lower grades, blizzard conditions in July and 18 days of repairs to the conveyor belt in September which reduced feed to the concentrator.  Planned lower grades at Mount Isa, Kidd and Tintaya mines also contributed to decreased production compared with the third quarter in 2010.

Partially offsetting lower volumes, production increased at Alumbrera due to higher grades and improvements to the grinding and pebbles circuit which improved throughput. At Antamina, the processing of a larger proportion of copper-only ores resulted in higher copper grades, while debottlenecking initiatives and improvements in blast fragmentation led to improved throughput and recoveries. 

Total refined copper production, including third party material, decreased by 5% compared with the corresponding period last year due to timing issues related to the supply of mined anodes to the Townsville refinery and lower third party anode supply to CCR refinery, together with reduced copper cathode production at Collahuasi and Tintaya mines as a result of lower grades.

Production Data	Q3 2011	Q3 2010	Nine months to 30.09.11	Nine months to 30.09.10
Total mined copper production (t) (contained metal)	223,606	233,647	657,652	667,795
Total mined gold production (oz) (contained metal)	141,411	129,667	416,576	363,873
Total copper cathode (t) (from mined and third party material)	163,683	171,397	477,504	542,570
Average LME copper price ($/t)	8,635	7,243	9,270	7,169
Average LBM gold price ($/oz)	1,685	1,227	1,531	1,178

  

Xstrata contacts		Investors & analysts
Alison Flynn		Martin Fewings
Telephone:	+44 20 7968 2838	Telephone:	+44 20 7968 2893
Mobile:	+44 7769 314374	Mobile:	+44 7990 591536
Email:	aflynn@xstrata.com	Email:	mfewings@xstrata.com
Pamela Bell		Caroline Yates
Telephone:	+44 20 7968 2822	Telephone:	+44 20 7968 2878
Mobile:	+44 7799 626715	Mobile:	+44 7824 826546
Email:	pbell@xstrata.com	Email:	cyates@xstrata.com

Notes to editors

About Xstrata plc

Xstrata is a global diversified mining group, listed on the London and Swiss Stock Exchanges. Headquartered in Zug, Switzerland, Xstrata maintains a meaningful position in seven major international commodity markets: copper, coking coal, thermal coal, ferrochrome, nickel, vanadium and zinc with additional exposure to gold, cobalt, lead and silver.  The Xstrata Group also comprises a growing platinum group metals business, iron ore projects, recycling facilities and a suite of global technology products, many of which are industry leaders. The Group's operations and projects span 20 countries.

This Interim Management Statement has been prepared solely to provide additional information to shareholders as a body to meet the relevant requirements of the UK Listing Authority’s Disclosure and Transparency Rules and should not be relied on by any other party or for any other purpose.