Xstrata Annual Report 2010

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					Xstrata Annual Report 2010
Strategy – Priorities, progress, KPIs

Strategic priorities                                           Progress in 2010                                               Key performance indicators
Develop our portfolio of significant organic growth projects   ■ Three major new mines successfully                           ■ Targeted 50% volume growth over 2009 levels
to deliver new production on time and on budget                  commissioned in 2010                                           by end 2014
                                                               ■ 10 projects approved and entered implementation with         ■ 20% reduction in operating costs by end 2014
                                                                 capital spend of $10 billion, 20 projects currently in
                                                               ■ $7.5 billion of project approvals due in 2011

Achieve further improvements to the net present value          ■ Record real cost savings of $541 million from efficiency     ■ Real cost savings (see page 37)
of our business                                                  initiatives and new, lower cost production                   ■ Increase in average mine life:
                                                               ■ Increased copper mineral resources at Antapaccay,              50+ years in 2010
                                                                 Collahuasi, El Pachón, Frieda River and Las Bambas           ■ Increase in total mineral resources:
                                                                                                                                up 60% on 2006 levels in 2010

Improve our health and safety, environmental and social        ■ Three fatalities at managed operations in 2010               ■   Zero fatalities
performance and, in particular, to operate a fatality-free     ■ 20% reduction in total recordable injury frequency rate      ■   Total recordable injury frequency rate (see page 38)
business                                                       ■ Corporate social involvement of $81.3 million (cash) and     ■   Environmental incidents (see page 39)
                                                                                                                              ■   Corporate social involvement (see page 41)

Retain key personnel and offer our people a rewarding          ■ 7.1% voluntary turnover in 2010, 11% higher than 2009        ■ Voluntary turnover (see page 41)
and non-discriminatory workplace with development              ■ Accelerated leadership development programme                 ■ Training spend and hours per employee
opportunities                                                    continued across Group                                         (see page 41)
                                                               ■ Career development processes in place across the Group
                                                                 including annual performance reviews

Maintain a robust and appropriate capital structure            ■ Extension of bank facilities through $4 billion syndicated   ■ Gearing (net debt / net debt + equity)
                                                                 loan with no financial covenants                             ■ Cash generation from operations (see page 3)
                                                               ■ Increased headroom of $8.7 billion                           ■ Net debt position
                                                               ■ Cash generation from operations of $9.95 billion
                                                               ■ Net debt reduced to $7.6 billion

Identify and execute opportunities to create value through     ■ Acquisition of Sphere Resources (iron ore projects in        ■ Successful integration of acquired assets,
acquisitions, divestments, mergers or                            Mauritania); majority ownership secured,                       realisation of anticipated synergies (if applicable)
strategic partnerships                                           integration underway
                                                               ■ Completion of divestment of El Morro to New Gold

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