The Las Bambas copper project is located in Peru’s Cotabambas and Grau Provinces.

Exploration at Las Bambas commenced in March 2005 following extensive consultation with local communities.

The Xstrata plc Board approved the $4.2 billion Las Bambas project in August 2010. The project will produce an average of 400,000 tonnes of copper in concentrate including significant gold, silver and molybdenum by-products, and first quartile cash costs. The mine is expected to be commissioned in third quarter of 2014 with ramp up and full production reached by the end of that year.

In December 2011, Xstrata Copper announced increases in the Las Bambas project Mineral Resource estimate to 1.710 billion tonnes at a grade of 0.60% copper, using a 0.2% copper cut-off grade, an increase of 10% compared to the previous Mineral Resource dated 1 October 2010.

The project’s Environmental and Social Impact Assessment received community approval in July 2010 and was approved by Peruvian authorities in March 2011 paving the way for final permitting and construction to commence as scheduled in the third quarter of 2011.

Brief History of the Operation

In August 2004, Xstrata Copper was granted a term of up to six years to complete exploration and feasibility work at Las Bambas, during which time Xstrata may exercise the option to develop the mining concessions into a mining project.