Xstrata Copper manages and has a 50 percent controlling interest in Minera Alumbrera open pit copper-gold mine in Argentina. Canadian companies Goldcorp and Yamana Gold own the remaining 50 percent.

Minera Alumbrera has the right to mine the Bajo de la Alumbrera copper-gold deposit by agreement with Yacimientos Mineros de Agua de Dionisio (YMAD), which has the title to the deposit. YMAD is formed by the government of Catamarca province and the National Tucuman University and is entitled to 20% of Minera Alumbrera’s net proceeds.

Bajo de la Alumbrera began operations in 1997 for initial investment of US$1.3 billion. Xstrata acquired Alumbrera in June 2003 as part of its MIM Holdings Limited acquisition. Since then a series of low capital cost expansions have increased processing capacity by 54 percent to 40 million tonnes per annum.

Bajo de la Alumbrera is located in the north-west of Argentina, in the province of Catamarca, at an altitude of 2,600 metres. The Minera Alumbrera operations consist of five facilities in three provinces: the open cut mine and processing facilities at Alumbrera, Catamarca; a 317 kilometre concentrate slurry pipeline through Catamarca and Tucumán provinces; a 202 kilometre 220kV powerline from El Bracho, Tucumán; the filter plant and rail loading facilities at Cruz del Norte, Tucumán; and the port and handling facilities at San Martín near Rosario, Santa Fe.

In 2008 Minera Alumbrera completed construction of a molybdenum plant, which has an annual production capacity of 1,600 tonnes of molybdenum concentrate.

Agua Rica

In September 2011 Xstrata Copper, Goldcorp Inc. (“Goldcorp”) and Yamana Gold Inc. (“Yamana”) announced that they have reached a definitive agreement providing Minera Alumbrera Limited Sucursal Argentina (“Minera Alumbrera”) the exclusive option to acquire Yamana’s 100% interest in the Agua Rica project in the province of Catamarca, Argentina, located approximately 35 kilometres from the currently operating Alumbrera mine.  Agua Rica has an estimated production capacity of 250ktpa utilising existing Alumbrera concentrator and mine fleet as brownfield expansion. The estimate mineral resources are 1.7 billion tonnes at a grade of 0.4% Cu, with credits of Molibdenum and Gold (0.20% Cu cut-off). A feasibility study has commenced and a decision is anticipated in 2013.

Filo Colorado

Xstrata Copper conducted a limited exploration program at Filo Colorado to assess a possible extension to the Minera Alumbrera operation. The exploration program was approved by the Catamarca provincial government in October 2006, following an Environmental Impact Assessment. The program concluded in 2007 and the access road was closed. No further exploration work has been conducted since then and Xstrata Copper has no current plans to recommence exploration at Filo Colorado.