WIXLIB

Expansion in South America:Progress and Sustainable DevelopmentJose Marún – Executive General ManagerS h AmericaSouthAi OperationsOiDi i iDivision4 October 2012

South America Operations DivisionMaximising regional synergies Created in February 2011, headquarteredin Lima,Lima Peru Manages mining operations, corporateaffairs and business development inArgentina, Chile and Peru:- Tintaya Antapaccay (Peru)- Las Bambas (Peru)y ((Chile))- Lomas Bayas- Minera Alumbrera (Argentina)- Agua Rica Project (Argentina)- El Pachón Project (Argentina) Strong regional coordination Synergy capitalisation eg suppliers andpprocurement Effective coordination with regional JV,marketing and project development sites2

South America’s contributionMajor and growing contribution South American operations (including non-managed JV’s) contribute around 70% ofXstrata Copper’spppproduction and operatingpgpprofit Two major projects approved and in implementation: Tintaya/Antapaccay –commissioning and Las Bambas – under construction Several brownfield expansion opportunities at managed operations: Lomas Sulphides,CCoroccohuayco,hAAgua RiRicaXstrata Copper mined copper production2011: 889,000 tonnesXstrata Copper operating profit2011: 3,924 ueensland28%Chile*31%Chile†28%Peru** 23%Argentina14%Argentinag13%*Including Lomas Bayas and XCu’s share of Collahuasi**Including Tintaya-Antapaccay, Las Bambas and XCu’s share of Antamina†Including Lomas Bayas, Altonorte and Xcu’s share of CollahuasiPeru** 25%3

Strong Sustainable Development practicesSouth American Operations Division All operations and projects managed to Xstrata’s industry-leading sustainability standards, withstrong focus on community engagement– Regular internal and third party audits Continuous improvement in safety performance: Visible leadership, safe work procedures,effective investigations, training and risk management systems Industry-leading environmental performance: No moderate or more serious environmentalincidents; biodiversity programs; energy and water use efficiency targets Commitment to sustainability underpins business strategy and social licence to operate– Early community consultation, effective dialogue mechanisms and grievance proceduresLost Time Injury Frequency RateTotal Recordable Injury Frequency Rate2,003 003,001,502,001,001,00,000 20082009201020114

Operations andProjects in Chile

Chile: Lomas BayasExpanding production and extending mine life Lomas Bayas is located in the AtacamaDesert, 135 km northeast of the port ofDesertAntofagasta Employs approximately 1,700 people,including permanent contractors Annual production capacity: 75,000 tonnesof copper cathodes from a SX-EW plant Annual extraction rate: 70 million tonnes ofLomas Bayas supervisors at Fortuna pitminedi d ore ffrom an open piti minei Lomas II project to extend mine life atcurrent production is on track forcompletionpin the fourth quarterqof 2012 Pre-feasibility study underway into thedevelopment of the sulphide depositunder and around the initial Lomas Bayaspit to further increase life and expandproductionVinko Yutronic Process Area Shift Boss6

Focus on Sustainable DevelopmentRecognised for industry-leading performance Received the national annual Category A safetyprize from Sernageomin for safety performancei 2011inIndustry-leading environmental performance:eg initiatives to reduce water loss in leachingprocess due to evaporation– Leach pads’ sprinkler system replaced withdrip feed system and pads covered whenirrigated– Reduced evaporation rate by approximately54%Lomas Bayas safety performance30LTIFR / 72008LTIFR2009TRIFR20102011DISR– Increased area irrigated by almost 70%without placing additional stress on localwater resources Best in class community relations Stakeholder dialogue roundtables– Workingg with farmers, CONAF and UniversityyArturo Prat to conserve the Calama Oasis– Multiple industry recognitionsSupporting farmers to improveagricultural techniques7

Creating value at Lomas BayasRapid value creation over six yearsSince 2006, we have expanded the operation by 15% to 75ktpa, extended the mine life by16 years to 2028 and are evaluating a Sulphides project to further extend/expand the mineProject delivery timelineAcquire Lomas Bayas aspart of Falconbridgeacquisition20062007June: 70minvestmentapproved toexpand LomasBayas by 15% to75k75ktpaExpansion to75ktpacompleted inQ4 on timeand budget2008Basicengineeringof Lomas IIprojectcommences2009Oct: 293MLomas IIinvestmentapproved toextend mine lifeb 8 years toby2020 throughdevelopment ofsatellite Fortunade Cobre pitDetailedengineeringof Lomas IIcommencesAug: Lomas IIproject 92%completeProcurement2010Lomas Bayasmine lifeextended byfurther 4 yearsto 20242011Constructioncompleted ofLomas II ROMsystemCommencedCdPre-feasibilitystudy for LomasSulphides2012Lomas Bayasmine lifeextended byfurther 4 years to2028Q mechanicalQ4:hlcompletion:Heap LeachConveyor systemPrimary Crusher8

Lomas Bayas II Project, ChileOn schedule for completion Q4 2012Primary Crusher location – heap systemDescription Extension to Lomas Bayas mine lifel f throughhhdevelopment of Fortuna del Cobre orebody,3km from the original pit Production: 75ktpap Cu usingg existingg SX-EWplant Approved capital cost: 293M LOM: extended by 16 years to 2028Project Status (as of Sept 2012)Fortuna pit and ROM Pad – ROM system Commissioned ROM system: Q4 2011 Production ROM system: Q1 2012 Commissioning heap leach system: Q3 2012 Production heap leach: Q4 2012 Primary crusher and conveying system:mechanical completion Q4 20129

Lomas Bayas II ProjectElectro Mechanical Assembly Belts and CrusherCounterweight structure for overland conveyorAssembly of primary crusherConstruction of overland conveyor10

Lomas Bayas II ProjectHeap leach pad construction11

Lomas Bayas Sulphides ProjectEvaluating further growth potential Sulphide & oxide resource surroundingandad bebeneatheat thet e Lomaso as Bayasayas openope pitp t inAntofagasta Region, Chile Lomas Bayas Mineral Resource: 430 Mt @ 0.28% Cu in Oxides andMixed oresLomas Bayasy openp pitp 880Mt @ 0.33% Cu in sulphides andoxides Estimated additional production capacity:average of 90ktpa copper in concentratesover at least 18 yearspre feasibility: potential start-upstart up 2017 In pre-feasibility: Scope considers using standardconcentrator concept (one line, 90ktpd) Projectconsiders the use of sea water forjprocessingStandard concentrator concept12

Lomas Bayas Sulphides ProjectMine area planPUBLIC ROADSULPHIDESDUMPROMPADSCRUSHERSULPHIDENEW ACCESSCONVEYOR BELTSMANAGEMENT AREAFORTUNADUMPCHECKPOINTHEAPLEACHYARDS- SERVICESSULPHIDES PIT(existing Lomas I pit)OXIDE CRUSHERFORTUNA PITSULPHIDES BELTSCONCENTRATORROM PADSFORTUNAELECTRICALLINES (SING)TRUCK SHOPCAMP13

OperationsandtidjProjectsinArgentina

Argentina: Bajo de la Alumbrera MineLarge scale, low cost operation Ownership: Xstrata Copper 50% andmanager,g , Goldcorpp 37.5%;; and Yamana Gold12.5% Located in Catamarca province at 2,600metres above sea level 317km concentrate pipeline to Tucumán thenrail to port facilities in Santa Fe province. Annual production of 135,000 tonnes ofcopper in concentrates; 350350,000000 ounces ofgold in concentrates; 25,000 ounces of golddoré; and 1,400 tonnes of molybdenumconcentrateTransporting ore to the primary crusher LLow fifirst quartileil C1 cashh cost positionii Mine life to 2018 through successive minelife extensions over recent years.Alumbrera concentrator15

Minera Alumbrera: Sustainable DevelopmentperformanceCommitted to continuous improvement Strong safety performanceMinera Alumbrera safety performance Industry–leading environmentalmanagement:– Over 928 days without any Category 2(minor) or more serious environmentalincidents– Effective biodiversity managementprogram– Meeting water use improvementtargets Effective community relations programs– Community surveys indicate improvingperception of mining benefits– Delivery of a number of majorinfrastructure projects eg.eg Schools andHospital in Catamarca and Tucumánmaternity hospitalMonitoring Alumbrera’s cacti revegetation program16

Agua Rica ProjectPotential to extend life and expand Minera Alumbrera Minera Alumbrera holds the option todevelop the Agua Rica project,project 35km fromthe Alumbrera processing facilities Mineral Resource: 1.7 billion tonnes @ 0.4%Cu with Mo and Au credits (0.20% Cu Cutoff) Mineral Resource confirmation programunderway FeasibilityFibili studyd (Fl(Fluor/XCu)/XC ) isi evaluatingl iDrill pprogramgAgua Rica development as a brownfieldexpansion to Minera Alumbrera, utilisingthe existing concentrator and mine fleet Estimated production capacity 250ktpa Cuwith gold and substantial Moly credits,mine life of over 25 years If option / investment decision is made,madethere is potential transition from MineraAlumbrera to Agua Rica in 2018-2019Preliminary design – Crusher platform17

El Pachón ProjectRecent history of substantial Mineral Resource improvements Located in San Juan Province,Argentina 5km from border withArgentina,Chile Mineral Resources: substantialongoing increases achieved– 2010-2011 increase achievedthrough major drilling program(56,000m)– 2011-12 increase achieved viakey geometallurgical &geomechanical optimization &minor drill program CompletingCl i finalfi l ffeasibilityibili studyd– Very low Waste:Ore strippingratio of 0.2:1– Mine life of 30 years– Initial production of more than400ktpa Cu with Mo creditsEl Pachón Mineral ResourceEvolution by Category & Yearktonnes3.5003.0002 691932003200720094345302011Jun‐12jul-12El PachónTotal Mineral Resources (Oct 12):3 280 million3,280illi tonnestatt a graded off 00.47%47%copper, 0.011% molybdenum and 2.1 ppmsilver using a cut-off grade of 0.2% copper18

OperationsOtianddProjectsjin Peru

Operations in PeruRapid development and growth Acquired Las Bambas project in Apurimac Region in 2004– Construction underwayy for 400ktpap operationptocommence commissioning end-2014 Acquired Tintaya in Cusco Region in 2006– Nearby Antapaccaypprojectpcommencedcommissioning in August – first concentrateproduction scheduled for October– Capitalising on synergies Tintaya/Antapaccay/Bambas Acquiredd 33.75%33 % stakek in Antamina in Ancashh Region in2006 via Falconbridge acquisition– Major expansion to increase throughput by 38%successfullysuccessu y completedco p eted in Q1 20120 Since 2004, Xstrata has committed investment of US 10billion in Peru (including Antamina) and employs 16,500people including contractors We have contributed US 1.44 billion in socialfunds/projects, taxes and royalties over same period20

Industry-leading community engagementStrong focus on gaining licence to operate Commenced community engagement at LasBambas before explorationpprogramp g Established benchmark Independent AdvisoryGroup at Las Bambas Overwhelming community support duringP bli ConsultationPublicClt ti on LLas BBambasb anddAntapaccay EIAs Effective social programs at all sites providingshared value Dialogue Tables with communities in EspinarDistrict since 2002 (renamed DevelopmentTable) Espinar Province “DialogueDialogue TableTable” withnational / local authorities and communityrepresentatives established July 2012 Participatory environmental monitoringunderwayd Strong environmental managementAward-winning dairy plant in Espinarfunded by TintayaTintaya’s safety performanceTRIFR 0.3021

Tintaya-AntapaccayDelivering sustainable benefits22