Mining investments opportunities in Argentina

June 2012

2

Headquartered in Brisbane, employing over 20,000 people in nine countries Top five global mined and refined copper producer with mined copper output of

approx 900ktpa and strong cost position in the second quartile Projects under construction to increase production by more than 50% to

1.5Mtpa over next three years, further extend mine lives and reduce unit costs Will become a leading custom concentrate producer by 2015

We are a fundamental pillar of Xstrata’s diversified model

Alumbrera Argentina

14%

North Queens-land Australia

21%

Canada Opera-tions*11%

Collahuasi Chile**

21%

Chile Opera-tions7%

Antamina Peru***

17%

Tintaya Peru9%

Alloys3%

Coal33%

Copper42%

Nickel11%

Zinc11%

XCu operating profit by region 2011 XCu Share of Group EBITDA 2011

* Canada includes Xstrata Recycling that operates in Canada and US ** Xstrata Copper’s 44% share of Collahuasi *** Xstrata Copper’s 33.75% share of Antamina

We have a strong portfolio of geographically diverse assets and growth projects

4

Our business strategy

2006 Tintaya

2006 Falconbridge

Growth through acquisitions and optimisation of asset portfolio

2003 MIM

Maximise NPV of existing operations including capitalising on regional

leverage opportunities

New quality growth through project development/construction

Generation and evaluation of new projects to replenish the pipeline

2Mtpa of potential copper production under evaluation

USD3bn capex approved for expansions/extensions; continuous improvement

2011 E1, Monakoff, Agua Rica

USD4.2bn growth capex approved for 400ktpy copper

Acquisitions, asset optimization and organic growth

5

Sustainable Development:

Xstrata Copper’s Safety performance

Injury-free, safe work environments

Demonstrated leadership in environmental performance

Reputation for social responsibility

Realisation of the full potential of our people

Xstrata plc – Mining Sector Leader of the Dow Jones Sustainability Index in

2011/12 for fifth consecutive year and Super Sector Leader for Basic

Resources for the second consecutive year

Strategic Objectives– Focus on Sustainability

Xstrata Copper – 28 regional and national awards in 2011 for best

practices in Sustainable Development

2006 2007 2008 2009 2010 20110

2

4

6

8

10

12

1412.7

10.8

7.3

4.83.3

2.3

Total recordable Injury Frequency Rate (TRIFR)

(per million hours worked)

Global recognition for our industry leading performance

Risk industry

• Projects need between 10 and 12 years to be developed until they are sold. Therefore, return on investment is obtained in the long-run. Likewise, the business depends on the fluctuation of the commodities values.

Project staging:

– 3-4 year exploration

– 3-4 year feasibility

– 3 year construction

– Operation – initial payback

– Price cycle

Pillars of mining development

• ¿What has made Xstrata invest in Argentina? 8 key points:

1. A world-class low-cost mining operation: Bajo de la Alumbrera.

2. Long-term confidence in the metal market.

3. Legal certainty and fiscal stability.

4. Value chain generation.

5. Infrastructure development.

6. Qualified workers.

7. An efficient operation.

8. Social license.

1. Bajo de la Alumbrera- Ownership history

1998

37,5%Wheaton

River (Can)

25%North (Aus)

25%Rio Algom

(Can)

50%- MIM (Aus)

25%Rio Tinto

(UK)

50%Xstrata(Swis

s)

12,5%Northern Orion

(Can)

50%MIM (Aus)

2000

2003

200550%

Xstrata(Swiss)

12,5%Yamana

Resources (Can)

37,5%Goldcorp

(Can)

25%BHP (Can)

1. Bajo de la Alumbrera

• Bajo de la Alumbrera is located in Catamarca, Northwestern Argentina at an altitude of 2600m amsl.

• Project commissioning: 1997

• Partner: YMAD. It is entitled to 20% of the profits. Minera Alumbrera has distributed a profit share for US$ 980 million.

• Production: *116,200t/y cu in con * 330,000oz of au in con * 32,500oz au in dore.

* 1708 tn molybdenum

1. Bajo de la Alumbrera (cont.)

• Capex: USD 1300 M.

• Current reserves: up to 2017

• Exports for 2011: USD 1523 M.

• Tax Revenues: In 2011, Minera Alumbrera paid taxes, charges, contributions and royalties for USD 818 million, at national, provincial and municipal level. In the last 13 years, such contributions amounted to USD 4.8 billion, what involves an amount similar to the total investment made by company so far.

• Employees: 2216 (Dec 2011)

2. Long-term confidence in the metal market

· Customers

· Access to long-term capital.

· Confidence of those sharing risks

3. Legal Certainty and fiscal stability

• Stable and competitive legal framework (as Chile and Peru). • Legal framework was unanimously passed in the Congress in the 90`s.

4. Value chain generation

a) Supplier development• Objectives

* Identify and train local companies with the potential to offer services to other mining companies or sectors. Support from local authorities. * Organize business talks with suppliers.* Contribute to domestic development

b) Economies of scale• * Growth potential proportional to the development of new

projects. • * Refining growth depends on the growth of local production. For

that purpose, reasonable infrastructure and maintenance of clear rules are required.

• * Chilean mining uses Argentine raw materials to produce goods which are later imported by that country.

• * Refineries are in large production and consumption centers. Argentina has not met such requirements yet.

5. Infrastructure development

Due to the large amounts of supplies and the high consumption of

energy, it is necessary to have:

a) Available power

b) Transport infrastructure: roads and railway

• Updated transport rules

5. Infrastructure development (cont.)

Bajo de la Alumbrera includes five major individual projects across three different provinces:

1. The open pit and ore processing facilities

2. A 316 km concentrate pipeline

3. 202 km-long 220 kV powerline from El Bracho station (Tucumán) to the minesite.

4. A Filter Plant and concentrate storage facilities (Tucumán)

5. Port, storage, rolling stock maintenance and ship-loading facilities.

Other facilities:

• NCA railway line to rail concentrate from Tucumán to the port.

• MAA owns 4 locomotives and 182 wagons.

• National roads.

Mine facilities

Powerline and pipeline

Filter Plant & Minera Alumbrera locomotives

Port facilities

6. Qualified workers

• High level of employment and training of the local workforce. Full human resources sourced from Argentina.

• MAA strongly encourages training by education programs, scholarships, and traineeships. 35% of trainees have been recruited in different positions.

7. An efficient operation

a) Environment I) Re- certification of environmental rule ISO 14001

* Filter Plant, Slurry pipeline and Gral. San Martín Port Facilities.* Auditors have proposed certifying body BVQi to certify the facilities.

II) Accreditation of laboratory rule ISO 17025* MAA water laboratory in Filter Plant* Assurance of management and analytical results

III) 5 Stars Certification in pollutant control in the area of Mechanical Maintenance of Mine Sites granted by Caterpillar Internacional.

b) Industrial Safety

Minera Alumbrera, leader in industrial safety* Best indicators within the Xstrata group * Recognition from Instituto Argentino de Seguridad

8. Social license

•Xstrata´s overall commitment to the communities in the vicinity of operational sites is reflected in CSI programmes.

•Bajo de la Alumbrera: In 2008, expansion of Xstrata´s CSI programme to USD 3 million for a term of four years in Catamarca & USD 3 million for a term of three years in Tucumán to carry out major health and education projects.

•This is in addition to the commitment undertaken in 2005 by which Minera Alumbrera has contributed USD 3 million and USD 2,8 million, to each province, respectively.

8. Social license (cont.) CSI Programme  

Infrastructure works in Catamarca • Provincial Water Laboratory • Belén technical school for 1400

students• Andalgalá Lafone de Quevedo school • SJ Bautista Hospital Refurbishment• Refurbishment of local health centres • Belén, Andalgalá and Santa María ICU

Refurbishment and Equipment  • La Ciénaga Redonda School

Refurbishment • UNCA Auditorium Refurbishment• Agricultural equipment for Belén• Ambulances • State-of-the-art technology for the

provincial maternity ward

Infrastructure works in  Tucumán • Refurbishment of two wards at Padilla

Hospital• Niño Jesús Hospital Refurbishment • Zenón Santillán Hospital

Refurbishment • Obarrio Hospital fencing• El Carmen Mental Hospital • Avellanead Hospital • Refurbishment of helth centres from • Southern Tucumán • Obarrio Hospital remodelling works • Maternity ward staircase • Civil works at the maternity ward 

Conclusions

• The mining industry can provide growth opportunities in underdeveloped areas with limited other growth or development options in the immediate future. • Communities can gain access to training, employment, business and industrial support and sustainable development programs to meet their needs. •The active and responsible involvement of social and political leaders is required to roll out the benefits.• Companies with a strong Sustainable Development focus will be best equipped to provide this win-win outcome.• Private-public alliances will help to ensure long-term regional development that outlives the lifespan of any mining operation.

Questions?