We will grow and manage a diversified portfolio of metalsand mining businesses with the single aim of delivering

industry-leading returns for our shareholders. We can achievethis only through genuine partnerships with employees,customers, shareholders, local communities and otherstakeholders, which are based on integrity, co-operation,

transparency and mutual value-creation.

Rhovan

Maloma

Thorncliffe

MototoloHelena

Lydenburg

Chartech/African Carbon Group

BoshoekHorizonWaterval

Wonderkop Plant /Alloys Head Office

Rustenburg

Kroondal

Eland

Lion Smelter

Goedgevonden

SouthWitbank

Witcons

TavistockATC

Boschmans

Waterpan

ATCOM

Phoenix

ATCOM East

SpitzkopTselentis

Richards BayCoal Terminal

Cities and Towns

Xstrata Alloys

Xstrata Coal

B O T S W A N A

S W A Z I L A N D

Nelspruit

Polokwane

JohannesburgCoal South AfricaHead Office

S O U T H A F R I C A

Xstrata in South Africa

Nickel 5%

Copper 32%

Zinc 2%

Coal 49%

Alloys 14%

Xstrata is the fifth largest diversified mining company in the world, with strong industry positions

in copper, export thermal coal, export coking coal, ferrochrome, zinc and nickel. Xstrata’s activities are

organised into five global commodity businesses and a technology business, each of which operates

with a high level of autonomy. Xstrata differentiates itself from industry peers by devolving maximum

responsibility and authority to its commodity business units. We believe this directly benefits our

operations by creating a strong sense of local ownership, where entrepreneurial managers are

empowered and incentivised to address site-specific challenges and seize opportunities.

Xstrata Alloys – the world’s largestand amongst the world’s lowest costintegrated ferrochrome producers(through the Xstrata-Merafe ChromeVenture), one of the largest producersof primary vanadium and a growingproducer of platinum group metals.All of Xstrata Alloys operations arebased in South Africa.

Xstrata Coal – the world’s largestexporter of thermal coal (on a managedbasis) and a significant producer ofpremium quality hard coking coal andsemi-soft coal. Xstrata Coal has interestsin over 30 operating coal mines inAustralia, South Africa and Colombia.

Xstrata Copper – the fourth largestglobal copper producer, with mining andprocessing facilities located in Australia,Chile, Peru, Argentina and Canada.

Xstrata Nickel – the fifth largestglobal nickel producer and one of theworld’s largest producers of cobalt.Xstrata Nickel's operations includemines and processing facilities inCanada, the Dominican Republic andAustralia, and a refinery in Norway.

Xstrata Zinc – one of the world’slargest miners and producers ofzinc, operations span Spain,Germany, Australia, the UK, Irelandand Canada, with an interest in theAntamina copper-zinc mine in Peru.

†EBIT – earnings before interest and tax

Source: Xstrata 2008 annual report

Xstrata Technology Services –provides proprietary technologies andspecialist services in the areas of mining,mineral processing and metals extractionto Xstrata and other major miningcompanies worldwide.

North America 3.5%

South America 27%

Africa 19%Australasia 47.5%

Europe 3%

Diversified earnings†

by commodity and geographic regionXstrata operates in 19 countries

Key financial metrics

Stock exchange listings London and Swiss exchangesMarket capitalisation $34 billion*FTSE 100 position 21*2008 revenue $28 billion**2008 operating profit $9.7 billion**2008 net income $3.6 billion***As at 1 July 2009 **2008 Annual Report

Xstrata: a leader in the South African mining industrySince 2002 Xstrata has been a major investor and employer in South Africa at the forefront of sustainable

job creation, transformation, health and safety, community development and environmental practices.

Xstrata operates a devolved business model that ensures local executives have significant decision

making authority to drive investment decisions. Xstrata Alloys is headquartered in Rustenburg and

Xstrata Coal South Africa is headquartered in Johannesburg.

Ongoing significant investment in South AfricaOver R45 billion invested in South Africa since 2002, including:� R5.7 billion acquisition of Duiker Coal;� R1.7 billion construction of Lion chrome project;� R3 billion development of the Goedgevonden coal mine;� R7 billion acquisition of Eland Platinum and R1.38 billion

on the development of the Eland underground mineexpansion; and

� R14.6 billion on 25% stake in Lonmin.

Investing in South African jobs and skillsWe currently employ around 25,000 people, includingcontractors, in South Africa. Since 2002, we have:� Created over 4,400 permanent new jobs;� Created 5,800 contractor employment opportunities at our

Lion Ferrochrome and Goedgevonden expansion projects;� Invested over R300 million in skills training and workforce

development;� Contributed R15 million to the Joint Initiative for Priority Skills

Acquisition in South Africa (JIPSA) with 120 beneficiaries; and� Despite temporarily suspending 80% of our ferrochrome

production during a recent period of weak demand, weretrenched no permanent employees.

Facilitating meaningful transformationacross our businessWe were the first major diversified mining company to complywith the equity ownership requirements of the Mining Charteracross our entire portfolio in South Africa. We have accordinglyintroduced meaningful BEE partners into our businesses at alllevels with substantial equity participation.

Supporting HDSA-suppliersWe give preference to HDSA-owned or controlled businesses inall discretionary procurement. Where appropriate, we supportHDSA suppliers through management training and by sharingtechnology and expertise. Where no appropriate HDSA supplieris available, we encourage mainstream suppliers to partner withHDSA companies.� Xstrata Alloys sourced 55% of total discretionary

procurement from BEE suppliers procurement in 2008; and� Xstrata Coal achieved 41% in the same period.

Xstrata empowerment deals

Nature of transaction Empowerment partners

Ferrochrome 20.5% of pooling and sharing venture Merafe (29% Bafokeng, 22% IDC)Vanadium 26% of pooling and sharing venture Bakwena-Ba-Mogopa communityEland Platinum 26% of pooling and sharing venture NgazanaMototolo Platinum 26% of pooling and sharing venture KagisoXstrata Coal 20.2% (with 51% in new projects) African Rainbow Minerals

We have concluded BEE transactions across our entire commodity portfolio in South Africa. In addition to enabling partnersto access immediate cash flow, these transactions have resulted in hands-on participation at asset level and through jointexecutive committees.

Sustainable DevelopmentOur commitment to sustainable development was recognisedin 2008, when the Dow Jones Sustainability Index namedXstrata as the leading company in the basic resources sectorfor the second consecutive year.

Employee and community health and wellnessWorkplace HIV voluntary testing and counselling programmesare in place at all of our South African operations. Everyemployee and contractor is given time off to participate in HIVawareness training, empowering people to protect their health.Every HIV positive employee and their dependents are able toaccess free care and treatment:� Over 90% of Xstrata Alloys’ employees are participating in

its Wellness Programme; and� In 2008, 97% of Xstrata Coal South Africa employees

participated in voluntary HIV testing.

Xstrata Coal, through its partner Re-Action!, entered into acollaborative relationship with the Mpumalanga government andothers to extend HIV and Aids care and treatment tocommunities with a population of over 1 million. This initiativewas internationally recognised in 2008, when Xstrata Coal wasawarded the inaugural Business Excellence Award for ExpandedCommunity Programmes by the Global Business Coalition onHIV/ADIS, TB and Malaria. In 2009 alone, we have committedR32 million to these programmes.

Health and safetyWe operate to world-leading standards of health and safety:� Primary objective is to operate with no fatalities or injuries;� Support initiatives to address major community health

issues and enhance the wellbeing of employees; and� World class safety record in our South African operations.

EnvironmentWe identify, reduce and, where possible, eliminate allsignificant impacts of our mining, metallurgical andexploration activities on the environment through ISO 14001compliant management systems:� Xstrata-Merafe Chrome Venture’s energy efficiency

achievements were recognised by a special mining sectorenergy efficiency award, sponsored by the South AfricanNational Business Initiative;

� Xstrata Alloys received a Nedbank Green Mining Awardin 2008; and

� Since 2004, our water management plans, whichencourage water recycling, have led to a fall of 65% inwater usage at our South African coal operations.

CommunityMany of our projects are in line with Local Economic DevelopmentPlans and are linked to specific needs which have been identifiedby both local and national government. Notable examples include:� Whole School Development Programme to improve

governance in regional schools;� R40 million spent on education since 2004, including bursary

programmes that increase the number of graduates inengineering, accounting and IT;

� Enabling unemployed black farmers to become fully fledgedcommercial farmers in Mpumalanga; and

� Skills Training Centre in Steelpoort, Limpopo, which providesartisan training to local residents to support the growingplatinum group metals and chrome sectors in the area.

Xstrata plc | Bahnhofstrasse 2 | PO Box 102 | 6301 Zug | Switzerlandwww.xstrata.com