Xstrata Nickel

Xstrata Nickel

June 10, 2008 14:35 ET

Xstrata Nickel's Raglan Mine Honoured for Safety Performance

MONTEBELLO, QUEBEC--(Marketwire - June 10, 2008) -

Editors Note: A photo for this release is available via Marketwire's website.

Xstrata Nickel is pleased to announce that its Raglan operation in Northern Quebec has been awarded the 2007 F.J. O'Connell trophy for excellence in safety for the ninth time in the last ten years.

The F.J. O'Connell award is presented each year by the Mining Association of Quebec (AMQ) to the Quebec mine that has recorded the most improvements in mine safety and accident prevention.

"We are delighted to again accept this recognition of our commitment to 'Zero Harm' in our operations," said Michel Boucher, General Manager of the Raglan Mine. "We are proud of our record of continuous safety improvement and have all employees and contractors to thank for reducing our total recordable injury frequency rate by more than 50% last year and for putting safety first."

Ian Pearce, Chief Executive Officer of Xstrata Nickel, added "Over the past year, we have continued to make improvements to our health and safety programs throughout our operations and engrained a safety-first philosophy into everything we do. This significant achievement for Raglan is proof that the well-being of our employees is our top priority. We are committed to seeing our ambitious growth plans and prospects at Raglan go hand-in-hand with an emphasis on 'Zero Harm.'"

Xstrata Nickel's Raglan mining camp was constructed at a cost of Cdn$600 million and began production in 1997. In 2007, capital investments included Cdn$48 million to refurbish existing wharf facilities and Cdn$50 million to expand accommodation facilities. Exploration results have confirmed Zone 5-8 as the largest mineralized zone in Raglan's history, adding an estimated 4.5 million tonnes grading 2.80% nickel of inferred resources in 2007.

Raglan consists of three underground and one open pit nickel mines and a concentrator. Approximately 680 employees and 250 contractors work at Raglan. Work is currently underway to increase production to 1.3 million tonnes per annum by the end of 2008 and the company is reviewing plans for additional infrastructure, which is expected to allow a further expansion to reach 1.5 million tonnes by 2011. Exploration results continue to indicate that production can be doubled from current production in future.

Xstrata Nickel

Xstrata Nickel, headquartered in Toronto, Canada, is one of Xstrata Group's global commodity businesses, comprising five mines and processing facilities in Ontario and Quebec, Canada; a ferronickel mine and processing facility in Bonao, Dominican Republic, a high-grade sulphide mine and processing facility in Western Australia; and a refinery in Kristiansand, Norway. Xstrata Nickel has a significant portfolio of growth projects, including Koniambo in New Caledonia, Nickel Rim South in Canada, Kabanga in Tanzania, Araguaia in Brazil and Sinclair in Australia. Xstrata Nickel is the world's fourth largest nickel producer, with annual managed production of more than 116,000 tonnes of refined nickel.

Xstrata plc

Xstrata is a global diversified mining group, listed on the London and Swiss Stock Exchanges, with its headquarters in Zug, Switzerland. Xstrata's businesses maintain a meaningful position in seven major international commodity markets: copper, coking coal, thermal coal, ferrochrome, nickel, vanadium and zinc, with additional exposures to platinum group metals, gold, cobalt, lead and silver, recycling facilities and a suite of global technology products, many of which are industry leaders. The Group's operations and projects span 18 countries: Argentina, Australia, Brazil, Canada, Chile, Colombia, the Dominican Republic, Germany, New Caledonia, Norway, Papua New Guinea, Peru, the Philippines, South Africa, Spain, Tanzania, the USA and the UK. Xstrata employs approximately 56,000 people, including contractors.

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