Xstrata Copper Recycling Business

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Xstrata CopperRecycling Business

• ISRI Las Vegas

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Agenda

• Xstrata today
• Copper industry changes
• Technology requirements
• Xstrata Coppers business

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Xstrata todayGeographic and commodity
diversification
Fourth largest global copper producer
World-leading portfolio of growth projects
Worlds largest exporter of thermal coal and
significant producer of hard coking and semi-soft
coal
Fourth largest global nickel producer and one of
the worlds largest producers of cobalt
Worlds largest producer of ferrochrome and
leading producer of primary vanadium entry into
PGMs
Group EBITDA¹
One of the world's largest producers of zinc
concentrates and refined zinc significant
producer of lead
Source Xstrata website, summary of key
operations ¹ For the 12 month period ending 31
December 2006, pro-forma Group EBITDA, excluding
technology, corporate and unallocated
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Xstrata Minnow to majorGrowth in EBITDA
diversification by commodity
2001 US126m
2002 US482m
2005 US3,103m
2006 US10,441m
Falconbridge, Tintaya and 1/3 Cerrejon
MIM and Organic Growth
IPO and Coal Acquisition
Pre-IPO
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Xstrata Scale within each commodity2007
forecast industry rankings¹
Top 5 Copper producers (mined)
Top 5 Nickel producers (refined)
Top 5 Zinc producers (mined)
Codelco
272
Norilsk
1,783
1,129
Zinifex.Nyrstar
BHP Billiton
257
CVRD Inco
1,475
923
Korea Zinc Group
1,147
143
BHP Billiton
Freeport
Xstrata
864
Xstrata
115
Xstrata
920
545
Glencore
828
111
Jinchuan
Rio Tinto
Boliden
445
0
100
200
300
0
1,000
2,000
0
250
500
750
1,000
1,250
Kt
Kt
Kt
Top 5 Chrome producers
Top 5 Coking Coal producers
Top 5 Thermal Export producers
Xstrata
1,400
BHP/Mitsubishi
56
Xstrata
58
1,000
Samancor
37
BHP Billiton
16
Fording
900
Kazchrome
12
Anglo American
36
PT Bumi Resources
Assmang
Xstrata
35
Anglo American
300
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28
Drummond Co.
300
10
Rio Tinto
Hernic
0
500
1,000
1,500
0
20
40
60
0
20
40
60
Mt
Mt
Kt
¹ On a consolidated basis. Industry average for
reserves only, i.e. excluding resources
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Xstrata Copper
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Recycling ElectronicsAn evolving industry
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Whats changed in 25 years?

• Everything
• Materials available to smelter are different
• Cu smelting industry

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Materials

• 1980s
• Relatively high value materials (Au 20
  ounce/ton) and relatively low volumes
• Significant production scrap rates
• Technology only for special applications
• 2008
• Generally lower grades (Au lt5 ounce/ton) but very
  high volume
• Focus on post-consumer EOL equipment that
  requires pre-processing prior to smelting
• Proliferation of technology

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Copper industry

• Independent of the changes in materials, the Cu
  smelting industry has undergone significant
  modernization
• New technology replaces old processes
• Smaller, older plants closed
• Larger plants implementing major environmental
  and process upgrades
• 1989 180 MM acid plant
• 1998 63 MM re continuous converting
• 2004 13 MM re gas handling improvements
• 2007-9 20 re gas handling improvements
• Average size of Cu smelters has increased

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Proportion of world copper smelter output vs.
smelter size, 1975-2005
Source Dr. P. Mackey, Xstrata Process Support
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Why is State of the Art required?
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Complexity

• Electronic scrap is a complex material
• Mixtures of metals, fiberglass and plastics
• Wide variation on physical sizing and density
• Significant variation in qualities, lot to lot,
  customer to customer
• Environmentally sound smelting of electronics
  requires specialized technology
• Smelting electronics provides significant energy
  to the process but..
• Incomplete combustion can generate organic
  emissions
• Uncontrolled combustion will cause significant
  damage to the process
• Complexity requires advanced technology,
  process flexibility and knowledge

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Technology requirements

• Smelting plant is the heart of the process but it
  must be supported by other processes
• Sampling and sample preparation processes
• Feed handling systems
• Oxygen plants (800 mt/day)
• Gas handling, cooling, cleaning
• Sulphuric acid plant (600,000 mt/yr)
• Management processes are equally important

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Responsibility

• Commitment to health, safety, environment and the
  community
• Operate facilities to high standards that ensure
  safe working conditions
• Preserve the long-term health, function and
  viability of the natural environments affected by
  our operations
• Contribute to the social and economic development
  of communities associated with our operations
• Ongoing commitment to Sustainable Development
• Policy, standards, auditing
• More information go to www.xstrata.com

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Xstrata Copper Horne Smelter
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Horne Smelter (Rouyn-Noranda, Quebec)

• 800 employees and contractors
• Custom copper smelter processing and concentrates
  (720 ktpy) and recycle metal bearing streams (120
  ktpy)
• Produce 180,000 tpy of copper anodes, plus
  sulfuric acid

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Electronics growth projectFrom 50,000 to 100,000
mt/yr

• Project announced January 16, 2009
• Responding to increased needs in the market -
  working to increase Xstrata Coppers smelting of
  electronic scrap by 50,000 mt/yr
• Provide viable, long term capacity that is
  available as the market grows be ahead of the
  market
• Leverage Xstrata Coppers technology (Noranda
  Reactor)
• Tests have demonstrated significant capacity in
  the smelter no major technical hurdles
• Heart of the process is ready need to develop
  supporting processes

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Electronics growth projectFrom 50,000 to 100,000
mt/yr

• Increase materials handling capacity
• Growth of 50,000 mt/yr implies an additional
  2,500 deliveries/year focus of work plan
• Unloading, sampling, sample preparation capacity
  increases limited capital required
• Implementation
• Phase I January 2009 (partial implementation)
• Existing process optimization
• Phase II January 2010 (full implementation)
• Capital projects

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More information?

• www.xstratarecycling.com
• www.xstrata.com

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Thank-you