Xstrata PLC - Introduction

Introduction

Bahnhofstrasse 2, Postfach 102
Zug CH-6301
Switzerland
Telephone: +41 41 726 60 70
Fax: +41 41 726 60 89

4th Floor, Panton House, 25 Haymarket
London
SW1Y 4EN
United Kingdom
Telephone: +44 20 7968 2800
Fax: +44 20 7968 2810
Web site: http://www.xstrata.com

Public Company
Incorporated: 1926 as Suedelektra Holding AG; 1999 as Xstrata
AG
Employees: 17,062
Sales: $6.09 billion (2004)
Stock Exchanges: London Zurich
Ticker Symbol: XTA
NAIC: 212234 Copper Ore and Nickel Ore Mining;
212111 Bituminous Coal and Lignite Surface Mining;
212112 Bituminous Coal Underground Mining;
212291 Uranium-Radium-Vanadium Ore Mining;
212299 Other Metal Ore Mining; 331511 Iron
Foundries; 331522 Nonferrous (Except Aluminum) Die-Castings

Xstrata PLC has risen rapidly in the early 2000s to become one of the world's major mining groups. The company is active in commodity mining markets: coal; copper; zinc; and alloys. Xstrata is the world's leading producer of export thermal coal, with mines in South Africa and in New South Wales and Queensland in Australia, and is also a major producer of coking coal from its site in Queensland. The company owns or has interests in more than 30 coal mines, and produces more than 70 million tons per year, more than two-thirds of which are in Australia. Some 90 percent of the group's coal production is destined for the export market. Coal represents approximately 35 percent of the group's total revenues, which topped $6 billion in 2004. Xstrata's Copper production takes place in mines in Queensland, Australia, and in Argentina and Peru, including the group's 50 percent share of Argentina's Alumbrera open-pit gold and copper mine. Copper accounts for nearly half of the group's revenues. Zinc (including lead) production is based on the former Asturiana de Zinc, acquired in 2001, with zinc and lead smelters in Spain, Germany, Australia, and the United Kingdom. Xstrata's Alloys division is the world's largest producer of ferroalloys, including chrome and vanadium, with operations centered on South Africa and Australia. Xstrata's transformation into a major mining firm was achieved through an ambitious acquisition program costing more than $3 billion. This process has been led by former Billiton executive, and one of the architects of the BHP Billiton merger, Mick Davis. Xstrata continues to seek large-scale acquisitions into the mid-2000s. Its takeover bid for Australia's WMC Resources in 2005 failed, however. Xstrata is listed on the London Stock Exchange but is headquartered in Zug, Switzerland.