Xstrata Half Yr Report 2010

Xstrata plc Half-Yearly Report
six months ended 30 June 2010
3 August 2010
Xstrata plc Half-Yearly Report 2010 | 1
Key Financial Results
Six months to Six months to %

$m 30.06.10 30.06.09 Change
Revenue 13,608 9,541 43
Operating EBITDA* 4,494 2,685 67
Operating profit* 3,236 1,605 102
Attributable profit* 2,299 909 153

Attributable profit 2,288 690 232
Earnings per share (basic)* $0.79 $0.38 108

Earnings per share (basic) $0.79 $0.29 172
Net debt to net debt plus equity 19% 28% (32)

Net assets 35,223 33,302 6
Net assets per share** $12.13 $11.49 6
Dividends declared and paid (2009 final) 8.0¢ - -

Dividends proposed 5.0¢ - -
* Excludes exceptional items
** Excluding own shares
Highlights
 Strong financial performance more than doubled operating profit to $3.2 billion and attributable
profit rose by 153% to $2.3 billion
 Further real cost savings of $243 million achieved during the period together with increased
volumes of ferrochrome, PGMs, coking and semi-soft coal, refined nickel and mined zinc
 Net debt reduced to $8.4 billion and gearing to 19% at the end of June
 On track to deliver 50% increase in volumes and 20% cost reduction from Xstrata’s industry-
leading organic growth pipeline by 2014:
– Successfully commissioned major Nickel Rim South, Blakefield South coal and Goedgevonden
coal growth projects in the first half
– Approval of major $4.2 billion Las Bambas copper project in southern Peru and $1.1 billion
Ulan West coal project in Australia – a total of over $8 billion of new projects approved in
2010
– 15 major growth projects now approved and in implementation, representing $14 billion of
capital investment
 Interim dividend of 5¢ per share, representing 25% increase over implied 2009 full year dividend
reflecting the Board’s confidence in Xstrata’s prospects.
Disclaimer
This announcement does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer
to purchase or subscribe for any securities. The making of this announcement does not constitute a recommendation
regarding any securities.
Certain statements, beliefs and opinions contained in this announcement, particularly those regarding the possible or
assumed future financial or other performance of Xstrata, industry growth or other trend projections are or may be forward
looking statements. Forward-looking statements can be identified by the use of forward-looking terminology, including the
terms “believes”, “estimates”, “anticipates”, “expects”, “intends”, “plans”, “goal”, “target”, “aim”, “may”, “will”,
“would”, “could” or “should” or, in each case, their negative or other variations or comparable terminology. These forward-
looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks
and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and
may be beyond Xstrata’s ability to control or predict. Forward-looking statements are not guarantees of future performance.
No representation is made that any of these statements or forecasts will come to pass or that any forecast result will be
achieved.
Neither Xstrata, nor any of its associates or directors, officers or advisers, provides any representation, assurance or guarantee
that the occurrence of the events expressed or implied in any forward-looking statements in this announcement will actually
occur. You are cautioned not to place undue reliance on these forward-looking statements.
Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure and
Transparency Rules of the Financial Services Authority), Xstrata is not under any obligation and Xstrata expressly disclaims any
intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future
events or otherwise.
This announcement may contain references to “cost curves”. A cost curve is a graphic representation in which the total
production volume of a given commodity across the relevant industry is arranged on the basis of average unit costs of
production from lowest to highest to permit comparisons of the relative cost positions of particular production sites,
individual producers or groups of producers across the world or within a given country or region. Generally, a producer’s
position on a cost curve is described in terms of the particular percentile or quartile in which the production of a given plant
or producer or group of producers appears. To construct cost curves, industry analysts compile information from a variety of
sources, including reports made available by producers, site visits, personal contacts and trade publications. Although
producers may participate to some extent in the process through which cost curves are constructed, they are typically
unwilling to validate cost analyses directly because of commercial sensitivities. Inevitably, assumptions must be made by the
analyst with respect to data that such analyst is unable to obtain and judgment must be brought to bear in the case of
virtually all data, however obtained. Moreover, all cost curves embody a number of significant assumptions with respect to
exchange rates and other variables. In summary, the manner in which cost curves are constructed means that they have a
number of significant inherent limitations. Notwithstanding their shortcomings, independently produced cost curves are
widely used in the industries in which Xstrata operate.
No statement in this announcement is intended as a profit forecast or a profit estimate and no statement in this
announcement should be interpreted to mean that earnings per Xstrata share for the current or future financial years would
necessarily match or exceed the historical published earnings per Xstrata share.
Chief Executive’s Report
Xstrata’s first half performance was characterised by another robust cost performance, volume growth in most
key commodities and positive momentum in developing our industry-leading pipeline of organic growth projects.
Operating profit more than doubled to $3.2 billion and EBITDA rose by 67% to $4.5 billion, reflecting a robust
operational performance and markedly stronger commodity markets compared to the first half of 2009 as
demand from China grew rapidly and the US economy continued its recovery. Earnings per share more than
doubled to 79 cents on a pre-exceptional basis.
Xstrata continues to be differentiated by an ongoing focus on maximising the value of our existing operations
and achieving incremental operational improvements. In the first half, sustainable real cost savings of $243
million were achieved as a result of the restructuring and expansions of our zinc and nickel assets undertaken in
2009, the restart of alloys and coking coal operations to meet growing demand from the steel industry, the
successful commissioning of three major, low cost operations in nickel and thermal coal and productivity
improvements across the portfolio that offset cost pressures, in particular from lower grades at most copper
operations and increased energy, fuel and labour costs.
Following the successful expansions and restructurings of our nickel and zinc businesses in 2009, both business
units are now operating well within the bottom half of their respective industry cost curves. Xstrata Nickel’s
recent initiatives have seen the business emerge as a robust nickel producer with C1 cash costs currently around
$2.50 per pound, with a portfolio of attractive greenfield and brownfield organic growth options. Xstrata Zinc’s
expansions and productivity improvements at the Mount Isa and McArthur River Mine operations in Australia in
2009 contributed $121 million to earnings in the first half, including $66 million of real cost savings and
delivered a 6% increase in mined zinc production and a 10% increase in mined lead production. Record
production was achieved at the Mount Isa mining operations and concentrator despite lower head grades, which
are expected to improve in the second half. Integrated zinc mine and smelter C1 costs were significantly
reduced in the first half of 2010 compared with the same period of 2009, falling by 18% from 44¢ per pound to
36¢ per pound. This marks an impressive reduction of around 30% in integrated zinc C1 cash costs since 2008.
In total, over $500 million of costs have been stripped out of Xstrata’s zinc operations since 2004, primarily as a
result of low capital cost expansions and productivity improvements. Over half of these savings have come from
the former MIM operations, demonstrating the significant value that has been created throughout the
commodity price cycle from the progressive improvement of formerly underperforming operations.
Safety performance improved further across the Group with a 19% reduction in the frequency of total
recordable injuries sustained compared to the prior year to 7.1 per million hours worked.
Growth from the portfolio

Since 2002, our commodity business teams have established a solid track record of on time, on budget delivery
of growth projects, successfully developing 14 new operations. The pace of our delivery of growth gathered
momentum in the first half, as we enter the most intensive phase of organic growth in Xstrata’s history.
Three major growth projects were successfully commissioned during the first six months of the year. The
polymetallic, negative cash cost Nickel Rim South mine in Canada is already exerting a significant positive
influence on our nickel cash costs as it ramps up to full production next year. The efficient 8 million tonnes per
annum Blakefield South underground longwall thermal coal operation to replace Beltana mine and extend the
life of our New South Wales operations by 12 years commenced production during the period, and the 7 million
tonnes per annum Goedgevonden open pit thermal coal mine in South Africa was commissioned to continue
our strategy of transitioning our South African coal operations into three major, low cost and primarily open cut
mining complexes.
In addition, over $8 billion of new projects were approved during the first half. Less than a month ago, Xstrata
Copper gained all approvals for the $1.47 billion Antapaccay expansion to the Tintaya operation in southern
Peru and we have today announced the approval of the $4.2 billion major greenfield Las Bambas project in the
same region. The $1.3 billion extension of the world-class Antamina copper-zinc operation in central Peru was
also approved in January. Xstrata Zinc’s Black Star Deeps expansion at Mount Isa and the Bracemac-McLeod
expansion project in Canada have recently commenced construction and today Xstrata Coal announced the
approval of Ulan West which will add another 6.7 million tonnes of annual thermal coal production from a
highly efficient underground longwall operation to Xstrata Coal’s industry leading asset portfolio for a capital
cost of $1.1 billion.
This momentum will continue into the second half of the year, as additional projects reach the approval stage,
including an expansion to the Cerrejón thermal coal operation in Colombia and the development of
Ravensworth North coal mine in Australia.
In total, 15 major growth projects are now approved and in the construction phase, representing a total of $14
billion of capital investment. These projects alone will deliver substantially all of our expected 50% increase in
overall volumes by 2014, delivering 40% volume growth over the same period. The balance of the projects to
achieve 50% volume growth will reach approval in the coming months. All of our projects remain on track and
within budget and I am very pleased with the progress our teams are making from a technical, social and
environmental point of view.
Industry-leading copper growth

Over the past five years, Xstrata Copper has grown its resource base more than five-fold through a combination
of acquisitions and intensive exploration programmes at existing operations and greenfield projects to provide an
exceptional base for our growth plans to increase copper volumes by 50% by the end of 2014. This includes the
recently announced 40% increase in mineral resources at the world class Collahuasi mine in Chile to over 7
billion tonnes, comprising 58 million tonnes of contained copper and increased reserves of 2.45 billion tonnes,
paving the way for the substantial future expansion of the operation to one million tonnes of annual production.
Conceptual studies for this major expansion will be completed in the first quarter of 2011.
Five brownfield copper expansion projects are currently in construction - Lomas Bayas and Collahuasi mines in
northern Chile; Ernest Henry underground mine in Queensland, Australia; and the Antamina and Tintaya-
Antapaccay expansions in Peru approved during the first half of the year. The approval of the greenfield Las
Bambas copper project announced today builds on this solid growth platform to continue the transformation of
Xstrata Copper into a low cost, 1.5 million tonnes per annum copper producer.
Since acquiring the option rights to Las Bambas in August 2004 for a total consideration of $121 million, Xstrata
has transformed this early stage exploration prospect into a world class mining project, which will be one of the
two largest greenfield copper projects to be commissioned globally over the next decade. The current Mineral
Resource is 1.13 billion tonnes at a copper grade of 0.77% across three separate orebodies, of which almost
80% is in the Measured and Indicated categories. There is substantial scope to add to this resource base as
extensions to the existing orebodies and in the highly prospective Las Bambas mineral district. Similarly, the
Antapaccay orebody and the Coroccohuayco deposit around 10 kilometres from Tintaya offer further brownfield
expansion potential and exploration and resource definition programmes are currently being developed for that
purpose.
Together, the Antapaccay expansion to Xstrata’s existing Tintaya operation and the Las Bambas greenfield
project in the same mineral district of southern Peru, mark the emergence of a world-class copper producing
division for the Xstrata Group. Annual production is expected to exceed 500,000 tonnes of copper in
concentrate per annum by the end of 2014, more than five times higher than current Tintaya production levels.
Antapaccay and Las Bambas are expected to enjoy competitive cash costs of around 90 cents and 60 cents per
pound respectively in their early years. Together, Xstrata Copper’s near-term growth projects are expected to
reduce the overall cost profile of our copper business by some 20%.
The Antapaccay project will use some of Tintaya’s existing infrastructure and increase production by 60% to an
average of 160,000 tonnes of copper per annum. The Antapaccay mine is scheduled to start production as the
Tintaya open pit closes in mid-2012 and will extend the life of the operations by at least 20 years. This project
paves the way for the larger Las Bambas development.
Both projects will use Xstrata Copper’s innovative standard concentrator design, developed through a three-year
partnership with major engineering firm Bechtel to reduce engineering and capital costs, minimise lead times,
improve efficiency and provide important maintenance and training synergies. Concentrate from Las Bambas
will be transported through a 215 kilometre pipeline to a new filter and molybdenum plant at the Tintaya-
Antapaccay site. Product from both operations will be transported on a common rail connection to the
expanded existing Matarani port facilities. The operations will also share the existing Tintaya road network,
pipeline access road, established Arequipa logistics centre and will be supported by an integrated team to reduce
overheads.
Initial production will commence in early 2014, 2 years after the start-up of Antapaccay. This sequencing of the
operations will enable a trained and experienced workforce to move from the construction of Antapaccay to the
Las Bambas project, ensuring that the project is properly resourced and minimising delays or costs associated
with the availability of skills.
Tier one mine to transform Xstrata Nickel

The Koniambo Nickel project is on schedule and within the original budget of $3.85 billion approved by the
Xstrata Board in October 2007. Koniambo will accelerate the next step in the transformation of Xstrata Nickel
by doubling mined nickel production and adding annual production of 60,000 tonnes of nickel contained in
ferronickel with a first quartile cost position. The long-life, high grade operation has an extensive resource base
that provides for over 50 years of production at current reserves and resources, with substantial future growth
potential. First ore is expected to be processed in mid-2012, followed by a ramp-up to full capacity within two
years. Importantly, the technology used at Koniambo is low risk. The project will use conventional pyro-
metallurgical smelting technology, meaning that it does not require high pressure acid leaching.
Around 80% of the budget has been committed, with $2.2 billion incurred to date. The project is almost 60%
complete and a number of significant milestones were reached in the first half of 2010. Dredging to complete
the port and the 150 metre wharf is now complete with the team maintaining its exemplary environmental
record throughout. The metallurgical plant site is now fully prepared for the arrival of the fabricated module
components from China and the first modules are due to begin loading in the first week of August.
The innovative modular design used for the Koniambo project enables substantial components of the
infrastructure required on site to be pre-fabricated at dedicated engineering facilities and shipped to be
assembled on site. This approach has significant capital cost benefits but also minimises the technical, safety and
environmental risks involved in constructing large-scale infrastructure from scratch at a remote location.
The next key milestones for the project are the successful delivery of all the modules from China by November,
followed by the completion of the on-site assembly of the metallurgical plant modules by year end. Earthworks
to construct the conveyor route and the ore preparation plant are expected to be complete by the end of this
year and the project is due to enter its peak on-site construction phase from the end of 2010.
Xstrata Nickel has also retained an attractive suite of potential additional brownfield and greenfield growth
projects including further expansions at the Raglan operation in northern Quebec, including from the Kikialik
deposit which is scheduled to begin in 2011 to maintain current production capacity, a 50% interest in the
Kabanga sulphide resource in Tanzania with a feasibility study due to be completed by the end of the year and
the early stage greenfield Araguaia deposit in Brazil. A feasibility study has recently been completed to
reconfigure the energy source of the Falcondo operation in the Dominican Republic from oil to gas and restart
production at an annual rate of 15 thousand tonnes of nickel in ferronickel.
High return growth in thermal coal

Xstrata Coal continues to benefit from an exceptional growth pipeline dominated by high return, brownfield
expansions and lower cost replacement capacity to extend the life of our regional complexes. Near-term growth
projects will add over 30 million tonnes per annum of new thermal coal production and 2 million tonnes per
annum of additional coking coal capacity by 2015 and reduce operating costs by approximately 10% over 2009
levels. The extent of Xstrata Coal’s growth pipeline is apparent in the range of 25 projects that are being
progressed at various stages of development in Australia, South Africa and Colombia.
The transition of our South African coal operations into three large, low cost, primarily open cut mine complexes
continued with the successful commissioning of the Goedgevonden open pit coal mine and the development of
the ATCOM East operation which is around one-third complete and the coal preparation plant is on track to
commission in the first half of 2011. This strategy mirrors the successful transition of our New South Wales coal
operations into four main complexes to leverage shared infrastructure and create regional scale.
In Australia, the Newlands Northern underground extension will commence production by the second half of
2011 while the Mangoola project is now almost 30% complete and on track to commission the coal handling
and preparation plant in the first half of 2011, around three months earlier than originally anticipated.
In addition to the Ulan West project approved today, approval is expected to be sought in the second half for
the major Ravensworth North mine to produce 14.5 ROM tonnes annually from a large, open cut operation. An
expansion to the world-class Cerrejón joint venture in Colombia will be tabled for approval in the second half to
increase production to 40 million tonnes per annum, with pre-feasibility work into further expansions due to
commence early next year. Reserves at the massive Wandoan deposit have increased to 1 billion tonnes and
feasibility studies continue to investigate the potential to develop a large-scale mine.
Leveraging Xstrata Zinc’s resource base

The zinc team continues to pursue opportunities to leverage the extensive resource base at Mount Isa and
McArthur River. Production at the Black Star open pit mine is on track to increase to around 4.5 million tonnes
in 2011 and a project to deepen and extend the life of the operation to 2016 was approved during the first half.
A further project to increase production from the underground George Fisher mine from 3.5 million tonnes to
4.5 million tonnes per annum is due for approval before the end of the year. Together, these projects will require
less than $300 million of capital expenditure. Recent expansions at the McArthur River Mine in the Northern
Territory have realised a 28% increase in concentrate production in the first half and ongoing cost
improvements. McArthur River Mine’s bulk zinc-lead concentrates will be processed on a trial basis at an
industrial scale demonstration plant for Xstrata Zinc’s proprietary technology for the direct leaching of zinc
concentrates, which was commissioned ahead of schedule and on budget at San Juan de Nieva in Spain.
Construction has also recently started on an expansion of Xstrata Zinc’s Nordenham operation in Germany which
will enable around 46,000 tonnes of bulk zinc-lead concentrates from McArthur River Mine to be processed
annually.
In Canada, the Bracemac-McLeod project in Quebec was approved in June with a capital cost of $151 million.
Located around 5 kilometres from the Matagami concentrator, the project will provide ore to Matagami once
the Perseverance mine reaches depletion at the end of 2012.
Exploration continues at the prospective Pallas Green deposit in Ireland where recent discoveries continue to
show encouraging signs of a potential world-class resource.
Ferrochrome efficiencies and growth in platinum

Xstrata Alloys continues to find innovative solutions to the cost pressures faced and during the first half the
Xstrata-Merafe Chrome Venture approved the construction of a new 600,000 tonnes per annum pelletizing and
sintering plant at its Rustenburg operations. The plant will be operational by 2013 at a capital cost of $114
million and will deliver significant cost savings, operational efficiencies and improved environmental performance
from reduced dust and air emissions. The plant is expected to further improve energy efficiency - a vital
consideration given recent significant increases in electricity prices in South Africa, which rose by around 68%
compared to the first half of 2009.
Our plans to grow our platinum business continue to make steady progress. The shaft for the Western Decline
System at Eland advanced by almost 700 metres during the first half and shaft development at the Eastern
Decline is currently at around 440 metres following capital approvals in March. Production from the
underground operations at Eland is projected to reach 250,000 tonnes per month by 2013, , with steady state
capacity of 500,000 tonnes per month equivalent to some 310,000 ounces of platinum being achieved during
2015. Eland will have a mine life of approximately 40 years. Exploration programmes are also under way to
investigate the potential to extend and increase capacity through the development of the deeper Madibeng and
adjacent de Wildt reserves.
The next transformation

Xstrata’s strategy has consistently focused on achieving value for our shareholders by growing our business
through acquisitions and organically and by progressively improving the quality of our existing assets. That
strategy remains intact and we continue to review opportunities for acquisition-led growth. Indeed we recently
announced a minor proposed transaction to acquire the outstanding priority units of the Noranda Income Fund
to gain full control of the CEZinc refinery in Quebec, Canada.
However, as we stand today, the next transformation of Xstrata will be delivered from the projects we are
currently constructing and those due for near-term approval. Our near-term organic growth pipeline and
expected capital spending of $14 billion from 2010 to 2012 is industry-leading both as a percentage of
enterprise value and in terms of the transformation and value that these projects will engender. A further,
second wave of projects is being concurrently progressed to replenish our range of growth options once the
projects in construction have been successfully delivered.
The compelling nature of the opportunity is clear. Our projects will deliver attractive returns and overall volume
growth of 50%, weighted towards copper, thermal coal and nickel. Our operating cost profile will reduce by
around 20% as new lower cost production is brought on stream. Importantly, the development of these
projects is largely within our control and involves lower execution risk than acquisition-led growth. There are
few transformational transactions that could be executed with the same degree of certainty in the value that will
be created for our shareholders over the next four years.
Within Xstrata, we have both the financial wherewithal and the project management expertise and experience
to continue delivering projects on time and on budget. We have established a robust financial position from
which to fund our growth, with gearing of 19% at the end of June, net debt of $8.4 billion and robust
operating cash flows. During the period, cash flows were further bolstered by Glencore’s exercise of its option
to repurchase the Prodeco operations in Colombia for an initial cash consideration of $2.25 billion plus the
balance of cash invested by Xstrata and profits accrued to the completion date.
Outlook
The short term outlook for macro-economic conditions remains mixed, with a ‘three-speed’ global economy
likely to persist for the foreseeable future. Uncertainty in Europe is likely to remain in the short term as high
national deficits drive spending cuts and the likelihood of higher unemployment that could further dampen
domestic demand. At the same time, governments will seek to strike a balance between austerity and growth
by retaining loose monetary policy and a certain level of stimulus, further increasing levels of sovereign debt.
With the exception of Germany, the EU is likely to struggle for some time to reach historical growth rates.
In the US, steady signs of recovery continue with industrial production returning to growth, employment
becoming progressively, albeit tentatively, positive and restocking of our products. Despite the occasionally
disappointing statistic, US growth appears to be moving to sustainable levels following the restocking phase,
supporting exports from China and other Asian economies. The US is likely to continue to provide an important
base of demand for exports from developing countries and directly for commodities as its economic recovery
continues.
However the developing economies, led by China, Brazil and India, are set to continue to provide the main driver
of demand growth for our products.
In China, the government has been proactive in taking steps to manage the economy into a sustainable growth
range of 8% to 10% in real terms to counter the high-end real-estate bubble and growing inflation, which now
appears to have peaked. Exports have grown robustly at 41% year-on-year in the second quarter and the 12th
five-year plan envisages over $1 trillion for urban infrastructure and significant spending on railway construction
and rural infrastructure. So, while the Chinese economy is clearly slowing, I remain confident that it is headed
for a soft landing and a GDP growth rate at or higher than last year’s levels.
India’s importance in demand growth for our products is becoming increasingly evident, in particular for thermal
and metallurgical coal. Although some way behind China’s level of investment, India’s construction spend is
forecast to grow at almost 13% per annum over the next five years and India is set to become the world’s
second largest steel producer within five years at over 120 million tonnes of annual production. Ambitious
energy generation plans to install over 20GW of capacity per annum are driving growing imports of thermal
coal.
We remain very confident in the buoyant outlook for Xstrata’s commodities in the medium term. It is worth
noting that China is undergoing a fundamental shift in the drivers of its economic growth as growing domestic
demand mitigates slowing infrastructure investment. Wages are rising as urbanisation continues, which is
positive for consumer expenditure. China is moving towards the manufacture of higher-value products as the
labour market experiences fewer new entrants. Demand for durable goods and other consumer products is set
to increase accordingly. At the same time, the savings ratio is expected to fall as China’s social security system
improves, fundamental land reforms take effect and the population ages.
In particular, I am encouraged by the outlook for thermal coal and copper, our two core commodities. In
copper, existing operations are struggling to maintain levels of production, while many of the new projects
expected to replace this declining production remain some years from reaching production. Growing imports by
China and India and infrastructure constraints mean the outlook for thermal coal is also expected to remain
positive.
Our growth plans aim to take advantage of these robust market conditions, bringing forward a 50% increase in
both copper and coal volumes over the next five years with substantial reductions in operating costs. Our
operating teams have delivered a robust operating performance and we move into the second half of the year
with positive momentum on volumes and on costs.
The next transformation of Xstrata is well under way from our suite of approved and soon to be approved
organic growth projects which will deliver industry-leading volume growth, substantial cost reduction and strong
returns.
We will continue to maximise the value of our existing operations and I expect further cost reductions in the
second half as new, lower cost production ramps up and our operating teams find new ways to unlock
productivity improvements and mitigate cost pressures. Acquisitions remain another potential avenue for further
growth and we will continue to review opportunities, maintaining our focus on pursuing only those
opportunities that will create clear and compelling value for our shareholders.
Our suite of commodities is well geared to continued infrastructure investment in China, India and elsewhere,
but also to growing domestic demand and the emerging shift to the production of higher value products in our
key markets.
The robust outlook for Xstrata’s prospects has enabled the Board to announce an interim dividend of 5 cents per
share to be paid to shareholders on the record at 17 September 2010, representing an increase of 25% over the
implied full year dividend for 2009. I remain very confident that Xstrata’s industry-leading growth prospects,
attractive commodity mix and proven ability to realise value from the optimisation of our existing portfolio
position the Group to deliver superior returns to its shareholders.
ML Davis
Financial Review
Basis of presentation of financial information

Financial information is presented in accordance with International Financial Reporting Standards (IFRS) as
adopted for use in the European Union. The reporting currency of Xstrata plc is US dollars. Unless indicated to
the contrary, revenue, operating earnings before interest, taxation, depreciation and amortisation (EBITDA) and
operating profit are reported in the Chief Executive’s Report and the Operating and Financial Review before
exceptional items. Exceptional items are significant items of income and expense which, due to their nature or
expected infrequency, are presented separately on the face of the income statement. All dollar and cent figures
provided refer to US dollars and cents.
Consolidated operational results

CONSOLIDATED RESULTS Six months to Six months to Year ended
$m 30.06.10 30.06.09 31.12.09
Alloys 920 530 1,305
Coal 3,579 3,242 6,749
Copper 5,879 3,687 9,223
Nickel 1,297 741 1,891
Zinc 1,868 1,295 3,450
Technology 65 46 114
Total Group Revenue 13,608 9,541 22,732
Attributable Total Group Revenue 13,089 9,114 21,790
Alloys 287 (16) 70
Coal 1,401 1,438 2,755
Copper 1,789 1,017 2,922
Nickel 436 25 427
Zinc 600 247 860
Technology 12 10 28
Corporate and unallocated (31) (36) (274)
Total Group Operating EBITDA 4,494 2,685 6,788
Attributable Total Group Operating EBITDA 4,284 2,486 6,350
Alloys 227 (52) (23)
Coal 1,030 1,137 2,038
Copper 1,377 648 2,126
Nickel 226 (179) (18)
Zinc 400 84 506
Technology 9 8 22
Corporate and unallocated (33) (41) (282)
Total Group Operating profit 3,236 1,605 4,369
Attributable Total Group Operating profit 3,069 1,440 3,999
The ongoing economic recovery in OECD countries and robust Chinese growth that led to a rebound in
commodity prices in the second half of 2009 continued into 2010, resulting in increased spot and LME prices for
all of Xstrata’s commodities compared to the first half of 2009. Following a strong first quarter, concerns over
the sustainability of economic recovery and high national debt levels, particularly in Europe, and Chinese
government interventions to cool rapidly growing sectors of its economy weighed on global market confidence
and commodity prices from April. Nonetheless, Xstrata’s revenues increased by 43% and improved sales prices
contributed $2 billion to operating profit compared to the same period last year.
Sales volumes increased in response to stronger market conditions and added $384 million to operating profit
compared to the first half of 2009. Increased coal volumes contributed $178 million to the result, boosted by
improved demand for semi-soft coal, increased coal chain capacity in New South Wales and a 58% increase in
coking coal sales, reflecting the return to growth of the global steel sector, which enabled the recommencement
of longwall operations at Oaky No. 1 in the second half of 2009. Ferrochrome production similarly benefitted
from improved stainless steel market conditions and rose by 149% compared to the first half of 2009 as idled
production capacity was bought back on stream. The full integration of Xstrata Nickel’s mining and processing
assets enabled maximum capacity utilisation of the Canadian smelting and Norwegian refining facilities. The
Nikkelverk refinery achieved record production at its increased annual capacity of 92,000 tonnes of nickel per
annum, increasing volumes of refined nickel by 8% compared to the first half of 2009. Copper sales volumes
recovered from weather-related impacts and reduced refined production in response to the collapse in demand
for sulphuric acid in 2009, with volumes rising by 2%. Volume growth was achieved despite lower grades at all
mining operations except Kidd Creek, Alumbrera and Collahuasi. Xstrata Zinc’s successful restructuring and
expansion of its Australian operations in 2009 and full production from the zinc smelters increased production of
zinc and lead by 6% and 10% respectively.
The benefits of the substantial restructurings and cost savings initiatives implemented in response to the global
economic downturn from late 2008, together with the ramp-up of new, lower cost production from successfully
completed growth projects continued into the first half of 2010. A total of $243 million of real cost savings was
achieved during the period. C1 cash costs at Xstrata Nickel were reduced by 31% to an average of $2.84 per
pound in the first half of 2010 from $4.09 per pound in the same period in the previous year as a result of the
Sudbury restructurings and the commissioning of the new Nickel Rim South mine. At the end of the first half,
Xstrata Nickel was operating with C1 cash costs of approximately $2.50 per pound at prevailing by-product
prices, well within the bottom half of the industry cost curve. Xstrata Zinc’s expansion and restructuring of the
Mount Isa and McArthur River operations, together with ongoing productivity improvements at the smelting
operations, reduced C1 cash costs on a fully integrated basis by 18% from 44 cents per pound in the first half of
2009 to 36 cents per pound in the first half of 2010, despite the impact of a weaker US dollar against the
Australian and Canadian dollars.
The restart of Oaky No 1 and the ferrochrome furnaces, lower maintenance costs following the closure of Kidd
Creek and productivity improvements at the Collahuasi and Cerrejón joint ventures further contributed to
Xstrata’s unbroken record of real cost savings at successive reporting periods since the Group’s inception in
2002. This was achieved despite cost increases in the copper business due to lower average grades, which
resulted in increased costs of $62 million.
The provisional pricing of copper and zinc sales reduced earnings from the copper and zinc businesses by $20
million and $48 million respectively. The terms on which Xstrata normally sells copper and zinc include a
provisional pricing mechanism whereby the sales price is calculated on the average price for the metal during the
‘quotational period’. This period ranges from 30 days after the date of the sale in respect of cathode sales to
180 days for some concentrate sales. Any outstanding provisionally priced sales at year end are marked to
market using the prevailing forward curve. Subsequent movements in commodity prices will impact on earnings
in the following period. Consequently in times of rising prices, Xstrata will tend to outperform the average LME
prices whilst the opposite applies in times of falling prices.
OPERATING PROFIT VARIANCES $m

Operating profit 30.06.09 1,605
Sales price* 2,033
Volumes 384
Unit cost – real 243
Unit cost – CPI inflation (122)
Unit cost – mining industry inflation 32
Unit cost – foreign exchange (767)
Other income and expenses (83)
Depreciation and amortisation (excluding foreign exchange) (89)
* net of commodity price linked costs, treatment and refining charges
The US dollar weakened substantially against the majority of Xstrata’s operating currencies in the first half of
2010 compared to the same period of 2009 and had a significant negative impact on earnings. The Australian
dollar strengthened by 25%, the South African rand was 18% stronger on average and the Canadian dollar
gained 15% on the US dollar compared to the first half of 2009. In total, adverse foreign exchange movements
reduced earnings by $767 million compared to the first half of 2009.
CURRENCY TABLE TO $ Average Average % At At At

H110 H109 change 30.06.10 30.06.09 31.12.09
USD:ARS 3.87 3.64 6 3.93 3.80 3.80
AUD:USD 0.89 0.71 25 0.84 0.81 0.90
USD:CAD 1.03 1.21 15 1.06 1.16 1.05
USD:CHF 1.08 1.13 4 1.08 1.09 1.04
USD:CLP 525 586 10 546 533 507
USD:COP 1,947 2,321 16 1,917 2,144 2,043
USD:PEN 2.85 3.10 8 2.83 3.01 2.89
EUR:USD 1.33 1.33 - 1.22 1.40 1.43
GBP:USD 1.53 1.50 2 1.49 1.65 1.62
USD:ZAR 7.53 9.19 18 7.67 7.71 7.39
Mining sector inflation reversed as the lagging impact of lower commodity prices in 2009 flowed through in the
first half of 2010, in particular in the coal business. Increased investment by the mining industry in response to
the global economic recovery and continuing demand for commodities from China, and increased costs of
consumables and labour are already increasing cost pressures.
Depreciation and amortisation increased mainly due to higher mine production in the zinc business, where
production at Black Star open cut rose 61% to 2.1 million tonnes, capitalisation of copper projects at Mount Isa
in 2009 and an adjustment to the reserve base in Collahuasi in 2009. Other income and expenses included
higher demurrage charges in the coal business and the reversal of a positive 2009 impact of nickel inventory
write down at the end of 2008, partially offset by lower standing charges in the alloys business.
AVERAGE COMMODITY PRICES Six months to Six months to %

Unit 30.06.10 30.06.09 Change
Ferrochrome (Metal Bulletin) ¢/lb 118.5 74.0 60
Ferrovanadium (Metal Bulletin) $/kg 30.7 22.5 36
Platinum (LPPM cash price) $/oz 1,597 1,098 45
Australian FOB export coking* $/t 193.7 142.6 36
Australian FOB export semi-soft coking* $/t 123.1 169.8 (28)
Australian FOB export thermal coal* $/t 80.3 89.2 (10)
Americas FOB export thermal coal* $/t 68.5 77.2 (11)
South African export thermal coal* $/t 69.9 69.8 -
Copper (average LME cash price) $/t 7,130 4,046 76
Nickel (average LME cash price) $/t 21,212 11,690 81
Zinc (average LME cash price) $/t 2,155 1,322 63
Lead (average LME cash price) $/t 2,084 1,332 56
* average received price
Recovering demand and ongoing constraints to supply, coupled with the return of investment activity in LME
metals, led to significant increases in the average price of copper, nickel, zinc and ferrochrome compared to the
corresponding period in 2009.
Realised coking coal prices rose steeply to over $193 per tonne as a result of recovery in global steel demand,
while realised semi-soft and thermal coal prices during the first half were lower, due to the impact of lower
priced 2009 contracts for the Japanese full year to 31 March 2010. Average prices in the comparable period
were also positively influenced by higher priced carryover tonnage in the first quarter of 2009 from 2008
Japanese contracts. Realised thermal and semi-soft coal prices in the second half are expected to rise, reflecting
the benefit of thermal coal contracts settled at up to $98 per tonne for the Japanese fiscal year from 1 April
2010. More recently, Xstrata has agreed contract prices at $103 per tonne for annual contracts commencing 1
July 2010.
Earnings
The pre-exceptional effective tax rate for the period was 25%, in line with the six months ended 30 June 2009.
Non-controlling interests increased mainly due to higher earnings at Alumbrera in the period.
EARNINGS SUMMARY Six months to Six months to Year ended

$m 30.06.10 30.06.09 31.12.09
Operating profit (before exceptional items) 3,236 1,605 4,369
Share of results from associates (2) (40) (56)
Net finance costs (8) (232) (347)
Income tax expense (800) (339) (993)
Effective tax rate 25% 25% 25%
Non-controlling interests (127) (85) (200)
Attributable profit (before exceptional items) from continuing operations 2,299 909 2,773
Earnings per share (before exceptional items) from continuing operations 0.79 0.38 1.05
Loan issue costs written-off (9) (41) (41)
Restructuring and closure costs - (40) (156)
Liability fair value adjustments - 79 350
Impairment of assets - (36) (2,553)
Share of loss from associates (4) (248) -
Profit on loss of control of interest in El Morro - - 194
Write down of investments in associates - - (277)
Foreign exchange gain on rights issue proceeds - 47 47
Income tax on exceptional items 2 20 324
(11) (219) (2,112)
Attributable profit 2,288 690 661
Earnings per share 0.79 0.29 0.25
OPERATING PROFIT SENSITIVITIES Impact on Indicative

$m H2 2010* full year**
1¢/lb movement in ferrochrome price 5 12
$1/kg movement in ferrovanadium price 2 4
$1/t movement in Australian thermal export FOB coal price 4 36
$1/t movement in Australian coking export FOB coal price 1 7
$1/t movement in South African export thermal FOB coal price 2 10
$1/t movement in South American export thermal FOB coal price 3 9
1¢/lb movement in copper price 16 25
$10/oz movement in gold price 4 6
$1/lb movement in nickel price 70 141
1¢/lb movement in zinc price 15 26
$100/t movement in zinc treatment charge price 8 18
1¢/lb movement in lead price 4 7
$100/oz movement in platinum price 5 10
$100/oz movement in palladium price 3 5
10% movement AUD 133 504

10% movement CAD 140 218
10% movement EUR 27 42
10% movement ZAR 102 223
* After impact of currency and commodity hedging, and contracted, priced sales as at 30 June 2010
** Assuming current annualised production and sales profiles, no currency or commodity hedging and no contracted, priced sales and
purchases at 30 June 2010
Cash Flow, Net Debt and Financing Summary

Xstrata’s operations generated strong cash flows of $4.8 billion in the first half of 2010, an increase of $3.2
billion on the corresponding period in 2009. The Group benefitted from a substantially improved debt position
due to these robust operational cash flows and the cash inflow of $2.25 billion from Glencore following the
exercise of its option to repurchase Prodeco on 4 March. The transaction completed on 13 April and a further
$238 million will be included as a receivable for the balance of undistributed profits and net cash invested. This
receivable is currently subject to final independent review.
Net debt in the period decreased by almost one third to $8.4 billion, despite a 73% increase in expansionary
capital expenditure of $1.4 billion. Gearing (net debt to net debt plus equity) decreased from 26% at the end of
2009 to 19% at the end of June 2010. Gearing and lower interest rates reduced the amount of net interest paid
to $189 million, 45% lower than the same period last year. Cash tax payments more than doubled to $919
million due to higher earnings.
MOVEMENT IN NET DEBT Six months to Six months to

$m 30.06.10 30.06.09
Cash generated from operations 4,778 1,611
Net interest paid (189) (342)
Dividends received 2 -
Tax paid (919) (403)
Cash flow before capital expenditure 3,672 866
Sustaining capital expenditure (650) (502)
Disposals of fixed assets 22 7
Free cash flow 3,044 371
Expansionary capital expenditure (1,447) (836)
Cash flow before acquisitions 1,597 (465)
Purchase of Prodeco - (2,000)
Exercise of Prodeco option 2,250 -
Subscription to Lonmin rights issue (58) -
Other investing activities 73 (166)
Net cash flow before financing 3,862 (2,631)
Net purchase of own shares (3) (5)
Issue of share capital - 5,667
Proceeds from sale of joint ventures and subsidiaries 466 -
Equity dividends paid (232) -
Dividends paid to non-controlling interests (121) (72)
Other non-cash movements (59) (27)
Movement in net debt 3,913 2,932
Net debt at the start of the year* (12,290) (16,026)
Net debt at the end of the period* (8,377) (13,094)
* Includes derivative financial instruments that have been used to provide an economic hedge
RECONCILIATION OF EBITDA TO CASH GENERATED FROM OPERATIONS Six months to Six months to
$m 30.06.10 30.06.09
Operating EBITDA 4,494 2,685
Share based compensation plans 15 122
Decrease/(increase) in inventories 232 (288)
Decrease/(increase) in trade and other receivables 609 (687)
Increase in other assets (101) (363)
Decrease in trade and other payables (409) (7)
Movement in provisions and other non-cash items (62) 149
Cash generated from operations 4,778 1,611
NET DEBT SUMMARY

$m As at 30.06.10 As at 31.12.09
Cash 1,369 1,177
External borrowings (9,527) (13,286)
Finance leases (219) (181)
Net debt* (8,377) (12,290)
Net debt to net debt plus equity 19% 28%
* Includes derivative financial instruments that have been used to provide an economic hedge
Working Capital
WORKING CAPITAL
$m As at 30.06.10 As at 31.12.09
Inventories 4,227 4,570
Trade and other receivables 2,691 3,306
Prepayments 114 232
Trade and other payables (3,259) (3,697)
Net working capital 3,773 4,411
Working capital balances were lower at the end of June 2010 due partly to lower commodity prices compared to
the end of 2009, resulting in downward mark-to-market adjustments on receivables.
Treasury Management and Financial Instruments

The Group is generally exposed to US dollars through its revenue stream and seeks to source debt capital in US
dollars directly or by borrowing in other currencies and swapping them into US dollars.
Currency cash flow hedging may be used to reduce the Group’s short-term exposure to fluctuations in the US
dollar against local currencies. The unrealised mark-to-market loss on currency hedges at 30 June 2010 was $51
million. Currency hedging gains reflected in the income statement for the first half amounted to $106 million.
These related to coal sales for which prices were contractually fixed.
The Group did not enter into any strategic, long-term base metals hedging contracts in the period.
Consolidated Capital Expenditure

CAPITAL EXPENDITURE SUMMARY
(excludes deferred stripping expenditure) Six months to Six months to Year ended
$m 30.06.10 30.06.09 31.12.09
Alloys 47 38 114
Coal 214 151 424
Copper 230 204 498
Nickel 89 42 93
Zinc 88 54 133
Technology 1 1 2
Unallocated - 1 1
Total Sustaining 669 491 1,265
Attributable Sustaining 659 484 1,243
Alloys 59 17 49
Coal 542 315 687
Copper 325 173 436
Iron Ore 26 - 23
Nickel 611 432 1,049
Zinc 49 26 114
Technology - - 1
Total Expansionary 1,612 963 2,359
Attributable Expansionary 1,332 832 1,993
Alloys 106 55 163
Coal 756 466 1,111
Copper 555 377 934
Iron Ore 26 - 23
Nickel 700 474 1,142
Zinc 137 80 247
Technology 1 1 3
Unallocated - 1 1
Total 2,281 1,454 3,624
Attributable total 1,991 1,316 3,236
Expansionary capital expenditure increased to over $1.6 billion during the first six months of the year as Xstrata
continued to ramp up investment to deliver growth from its project pipeline. Expenditure in the period marked a
substantial 67% increase, reflecting the advanced stage of construction and commissioning of a number of
Xstrata’s major projects, set against lower spending in 2009 as cash was conserved in light of prevailing
economic conditions.
During the period, three major growth projects were successfully commissioned:
• Nickel Rim South mine in Sudbury reached full mine operations on time and below budget in April. The
mine is ramping up to full capacity of 18,000 tonnes of nickel per annum in 2011.
• Xstrata Coal commissioned two major thermal coal operations, namely the Goedgevonden greenfield open
cut operation in South Africa and the underground Blakefield South mine in Australia. Goedgevonden mine
production is ramping up to its capacity of 7 million tonnes per annum, split between the domestic and
export market, with full production expected to be achieved in 2011. The Blakefield South project will
replace the Beltana underground mine and is ramping up to reach full capacity in the third quarter of 2010.
Expansionary capital expenditure is expected to increase in the second half to approximately $4.6 billion for the
full year to progress the further 15 major projects that are currently approved or in the construction phase. The
most significant in terms of capital budget is the Koniambo nickel project in New Caledonia which is now almost
60% complete and on track to commence production in the first half of 2012.
The Mangoola thermal coal project is on track to commence initial production during the second half, ramping
up to an annual production capacity of 8 million tonnes of domestic and export thermal coal by 2011.
Construction of the ATCOM East project in South Africa is nearly one third complete and on track to commence
annual production of 5.7 million tonnes in the first half of 2011, ramping up to full production in 2014 at an
annual rate of 7.5 million tonnes. Provided regulatory approvals are received in the second half of 2010,
construction will begin on the 14.5 million tonnes run of mine per annum Ravensworth North project. Following
approval in August, full production at the Ulan West longwall operation is scheduled to commence in 2014 at an
annual rate of 6.7 million tonnes run of mine.
Xstrata Copper is progressing three brownfield expansion projects at Ernest Henry mine in Australia, Lomas
Bayas in Chile and Antamina in Peru. Board approval for the $1.5 billion Antapaccay project in July, a
brownfield expansion to the Tintaya operation in southern Peru, will see construction commence in the third
quarter, with commissioning expected in the second half of 2012. Once commissioned, Antapaccay will produce
an average of 160,000 tonnes of copper for the first six years and transform the mine into a long life business
with at least 20 years of operations. Xstrata’s Board has approved the $4.2 billion investment to develop the Las
Bambas project, including the exercise of the option contract with the Peruvian government to transfer the land
titles to Xstrata Copper. Construction is scheduled to commence in the third quarter of 2011, subject to
Peruvian government environmental approvals. Las Bambas will be a large, long life, low cash cost operation
comprising three mines feeding a 140,000 tonne per day concentrator that will initially produce 400,000 tonnes
of copper in concentrate a year from the end of 2014.
Xstrata Zinc has announced the commencement of construction on the Bracemac-McLeod deposit in Quebec,
Canada, which will replace the production from the Perseverance mine from 2012.
Capital for the shaft development of Xstrata Alloys’ Eland platinum mine’s Eastern Decline was approved during
March 2010 and the shaft development is currently at 442 metres. The previously approved Western Decline
development has reached a depth of almost 700 metres. Production from underground operations is projected
to double current production levels to reach some 250,000 tonnes per month by 2013, with steady state
capacity of 500,000 tonnes per month, equivalent to around 310,000 ounces of platinum in concentrate, being
achieved during 2015.
Acquisitions and disposals

The Group received formal notification on 4 March 2010 by Glencore of their exercise of its option to re-acquire
the Prodeco coal operations which Xstrata had acquired in 2009 for a net consideration of $2 billion. Under the
option agreement, Glencore paid Xstrata a cash sum of $2.25 billion and Xstrata is also entitled to earnings from
Prodeco up to 13 April 2010 and the net amount of cash paid into Prodeco by the Group.
In October 2009, the Group entered into an irrevocable sale agreement to dispose of the Group’s 70% interest
in El Morro SCM, the holder of the El Morro copper-gold project in Chile, and associated rights and assets, to
New Gold Incorporated for a total cash consideration of US$463 million. As the Group recovered the carrying
value of this asset through a sale transaction, the asset was classified as held for sale at 31 December 2009. The
sale proceeds of $463 million were received from New Gold Incorporated on 17 February 2010.
On 30 July, Xstrata Zinc and the Noranda Income Fund announced that they had entered into an exclusivity
agreement regarding a non-binding proposal by Xstrata Zinc to acquire all of the outstanding units of the
Noranda Income Fund not held by Xstrata for C$3.40 per priority unit. Noranda Income Fund, a publicly traded
unit trust in which Xstrata Zinc owns a 25% interest, owns the CEZinc refinery in Quebec, Canada. Xstrata Zinc
currently manages the CEZinc refinery and processing facility in Quebec and supplies CEZinc with its annual
requirement of zinc concentrate through a contract which will expire in May 2017.
Dividends
The Directors have proposed a 2010 interim dividend of 5¢ per share amounting to $145 million which will be
paid on 8 October 2010. The final 2009 dividend of 8¢ per share amounting to $232 million was paid on 14
May 2010.
DIVIDEND DATES 2010

Ex-dividend date 15 September
Record date 17 September
Deadline for return of currency election form 23 September
Applicable exchange rate date 1 October
Payment date 8 October
As Xstrata plc is a Swiss tax resident company, the dividend payment will be taxed at source in Switzerland at the
rate of 35%. A full or partial refund of this tax may be available in certain circumstances.
The interim dividend is declared and will be paid in US dollars. Shareholders may elect to receive this dividend in
Sterling, Euros or Swiss francs. The Sterling, Euro or Swiss franc amount payable will be determined by reference
to the exchange rates applicable to the US dollar seven days prior to the dividend payment date. Dividends can
be paid directly into a UK bank or building society account to shareholders who elect for their dividend to be
paid in Sterling. Further details regarding tax refunds on dividend payments, together with currency election and
dividend mandate forms, are available from Xstrata’s website (www.xstrata.com) or from the Company’s
Registrars.
Share Data
Under IFRS, own shares (treasury stock) are deducted from the total issued share capital when calculating
earnings per share. During the period, 5,103,008 shares were disposed and 521,098 purchased.
XTA LSE XTA SWX

SHARE PRICE (GBP) (SFR)
Closing price 31.12.09 11.21 18.45
Closing price 30.06.10 8.87 14.35
Period high 13.21 21.50
Period low 8.87 14.35
Period average 10.96 18.10
SHARES IN ISSUE FOR EPS CALCULATIONS Number of

shares
(000s)
Weighted average for 6 months ended 30.06.10 used for eps calculation 2,902,329
Total issued share capital as at 30.06.10 2,939,018
PUBLICLY DISCLOSED MAJOR SHAREHOLDERS Number of % of

Ordinary shares Ordinary
of US$0.50 each issued share
Name of shareholder at 30.06.10 capital
Glencore International AG* 1,010,403,999 34.38
BlackRock, Inc 175,809,581 5.98
Capital Research and Management 145,466,653 4.94
AXA S.A. 88,770,657 3.02
* The voting rights comprised in this interest are directly controlled by Finges Investment B.V., a wholly-owned subsidiary of Glencore
International AG
Principal risks and uncertainties

The Xstrata Group is exposed to a number of risks and uncertainties which exist in our business and which may
have an impact on our ability to execute our strategy effectively in the future. The principal risks and
uncertainties facing the Group, as outlined in the Annual Report 2009 in the Business review section on pages
36 to 41, remain appropriate for 2010.
Markets | Alloys
Ferrochrome and vanadium

Restocking of stainless steel commenced in the first half of the year, leading to a recovery in demand for
ferrochrome as stainless steel melt production increased. Global production of stainless steel melt during the first
six months of the year of 15.5 million tonnes was 38% higher than in the comparable period in 2009 and 11%
higher than the second half of 2009. China continued to be the dominant producer, producing 5.3 million
tonnes, followed by 3.9 million tonnes from European producers.
In response to increasing demand, South African ferrochrome producers returned to around 85% capacity
utilisation at the beginning of 2010. Chinese and Indian domestic production was also restarted in the first
quarter of the year as furnaces returned to profitability.
In line with the recovery in the ferrochrome market, the average European ferrochrome benchmark price for the
first half of the year was 119¢ per pound, up from 96¢ per pound in the second half of 2009. The third quarter
European ferrochrome benchmark price was settled at 130¢ per pound.
Vanadium demand improved during the first half of the year responding to the recovery in global crude steel
production. The average ferrovanadium price during the first half of 2010 was $31 per kilogram vanadium, 36%
higher than the comparable period in 2009. Vanadium pentoxide traded at an average of $7 per pound during
the first six months of the year, compared to $5 per pound during the same period in 2009.
Outlook
In the short-term, demand for ferrochrome will be impacted by the seasonally weak stainless steel demand in
Europe and the US and exacerbated by the measures being taken by the Chinese government to slow its
overheating economy. Despite the slowdown in the demand, the ferrochrome market is expected to be in
balance, as South African capacity is reduced due to maintenance programmes being undertaken to coincide
with higher winter electricity tariffs.
Continued global economic growth will support a recovery in demand in the final quarter of 2010.
Platinum Group Metals (PGM)

Platinum group metals experienced a strong recovery in the first half of 2010 with platinum, palladium and
rhodium prices increasing some 45%, 116% and 104% respectively over the same period last year.
Demand for platinum group metals came from a combination of exceptionally strong investment activity
triggered by the launch of the US ETF in January 2010 and the recovery of the global car market, driven by
restocking in the US and increased production from China and other BRIC countries.
The combination of concerns over Europe’s slow economic recovery and the impact on vehicle sales in the West
of scrappage schemes, which came to an end in the second quarter of 2010, resulted in a heavy liquidation of
speculative positions in both platinum and palladium in May 2010 followed by a retreat in prices. As metal prices
dipped, there was increased platinum buying on the Shanghai Gold Exchange, the barometer for Chinese
jewellery demand, accentuating jewellery’s role as a demand ‘shock absorber’.
Outlook
Austerity measures in Europe will reduce demand from the automobile sector, the impact of which on platinum
demand will be partially offset by a recovery in the commercial and heavy duty vehicle market as well as new
demand from off-highway vehicles, such as tractors and earth-moving equipment. Palladium will be favourably
exposed to increasing auto-catalyst demand due to an increase in gasoline vehicles and tightening emission
standards in China.
Demand will continue from jewellery sales in China and from increased investment activity following the recent
approval to list additional shares on the US-listed ETF securities.
In the medium term, the PGM market is expected to remain tight as a result of continued constraints to supply
growth following the deferral of capital projects during 2008 and 2009.
Xstrata Alloys
FINANCIAL AND OPERATING DATA Six months to Six months to Year ended
$m 30.06.10 30.06.09 31.12.09
Revenue 783 448 1,105
Operating EBITDA 229 (36) 15
Depreciation and amortisation (43) (22) (62)
Operating profit/(loss) 186 (58) (47)
Share of Group Operating profit 5.7% (3.6)% (1.1)%
Capital employed 1,278 1,135 1,176
Return on capital employed* 28.6% (12.2)% (4.5)%
Capital expenditure 63 35 103
Sustaining 44 35 102
Expansionary 19 - 1
Platinum Group Metals
Revenue 137 82 200
Operating EBITDA 58 20 55
Operating profit 41 6 24
Share of Group operating profit 1.3% 0.4% 0.6%
Return on capital employed* 4.7% 0.9% 1.6%
Sustaining 3 3 12
Expansionary 40 17 48
* ROCE % based on average exchange rates for the period
OPERATING PROFIT/(LOSS) VARIANCES

$m
Operating loss 30.06.09 (52)
Sales price* 267
Volumes 22
Unit cost – mining inflation (33)
Other income and expenses 66
Operating profit 30.06.10 227
*Net of commodity price linked costs, treatment and refining charges
Operations
Xstrata Alloys recorded an operating profit of $227 million in the first half of 2010, compared to an operating
loss of $52 million for the same period in 2009. The recovery of the global economy and restocking in the
stainless steel sector created a significantly stronger pricing environment for all of Xstrata Alloys’ commodities.
During the first half of 2010, the ferrochrome price and the average platinum group metals’ (PGM) basket both
increased by 60% compared to the same period in 2009.
Ongoing inflation in the South African mining sector together with CPI reduced earnings by $55 million,
exacerbated by the negative impact of a weaker US dollar against the South African rand, which contributed a
loss of $60 million. Despite a difficult operating cost environment, which included a 68% increase in average
electricity prices, Xstrata Alloys achieved real cost savings of $54 million as a result of savings from a number of
initiatives, including the increased use of lower cost UG2 in the ore mix and the optimisation of the reductant
mix to limit the impact of high metallurgical coke prices.

In response to a strong market, attributable saleable production of ferrochrome rebounded strongly to 608,000
tonnes in the first half of 2010, an increase of 149% over the same period in 2009. Xstrata Alloys increased
ferrochrome capacity utilisation from 20% in the first half of 2009 to approximately 85% during 2010.
The European ferrochrome benchmark price increased some 35% from $1.01 per pound in the first quarter to
$1.36 per pound in the second quarter. Earnings from improved prices were offset against the strong rand and
electricity price increases in South Africa. The third quarter benchmark price has been settled at $1.30 per
pound, down 4% on the second quarter price.
Platinum Group Metals (PGM)

PGM volumes increased by 2% compared to the same period in 2009, mainly as a result of the production build-
up at Mototolo. Mototolo increased throughput by 91,000 tonnes, an 8% increase over the comparable period
in 2009, after reaching nameplate ROM capacity of around 200,000 tonnes per month in the third quarter of
2009.
At Eland, total volumes mined were 3% lower than the previous year, mainly due to a prolonged wet season
and delays in obtaining the regulatory permit for the De Wildt mining extension. Volumes milled during the first
half increased by 26,000 tonnes compared to the first half of 2009, with additional volumes being drawn from
stockpiles. Despite increased volumes being milled, PGM ounces were 4% lower than the first six months of
2009, as a result of declining average mine grades. Grades are expected to stabilise and gradually improve over
the next two years as the underground operations ramp up in line with the scheduled depletion of the remaining
opencast reserves.
SUMMARY PRODUCTION DATA

Six months to Six months to Year ended
30.06.10 30.06.09 31.12.09
Ferrochrome (kt)* 608 244 786
Vanadium**
Ferrovanadium (k kg) 2,186 1,313 2,284
V2O5 (k lbs) 10,707 7,039 11,492
Platinum Group Metals (oz)**
Platinum 63,937 63,508 132,969
Paladium 32,882 31,723 67,435
Rhodium 10,759 9,801 21,182
Indicative average published prices (Metal Bulletin)
Ferrochrome (¢/lb) 118.5 74.0 85.0
V2O5 ($/lb) 7.0 5.2 6.0
Ferrovanadium ($/kg) 30.7 22.5 25.0
Average prices ($/oz)
Platinum (London Platinum and Palladium Market) 1,597 1,098 1,205
Palladium (London Platinum and Palladium Market) 468 217 264
Rhodium (Johnson Matthey) 2,635 1,290 1,559
* Including Xstrata’s 79.5% share of the Xstrata-Merafe Chrome Venture
** 100% consolidated
Developments

During the first half of the year Xstrata Alloys concluded an offtake agreement with Lonmin plc, which expanded
the offtake of UG2 chrome tailings from Lonmin’s Eastern Platinum operations to Lonmin’s Western Platinum
operations. The tailings will be treated through a chromite recovery plant that will be built, owned and operated
by the Xstrata-Merafe chrome venture. This agreement will supply 1.5 million tonnes per annum of UG2
chrome.
The chrome venture has approved the construction of a new 600,000 tonne per annum pelletizing and sintering
plant at its Rustenburg operations. The capital cost of the project is $114 million and it is expected to be fully
operational by 2013. In addition to the agglomeration of UG2 and LG6 fines, the project will deliver significant
operational efficiencies, cost improvements and environmental benefits, including reduced dust and air
emissions.
The $46 million mine development continued at the Horizon complex to increase ROM capacity from 180,000
tonnes to 480,000 tonnes per annum in 2013.
Platinum Group Metals

Sinking of the Western Decline System at the Eland mine has substantially progressed and the shaft development
has advanced a total of 700 metres to date.
Capital for the shaft development at the Eastern Decline was approved during March 2010 and the shaft
development is currently at 440 metres. Production from underground operations at Eland will eventually
replace opencast tonnage, maintaining milling throughput and gradually increasing production as the Eastern
and Western Decline Systems ramp up to nameplate capacity. Production from underground operations is
projected to double current production levels to reach some 250,000 tonnes per month by 2013, with steady
state capacity of 500,000 tonnes per month, equivalent to around 310,000 ounces of platinum in concentrate,
being achieved during 2015.
Eland will have an estimated mine life of approximately 40 years. Potential to extend and increase capacity exists
through the development of the deeper Madiberg reserves.
Eland is revising its opencast mine plan to incorporate additional information arising from the extensive infill
drilling programme currently under way, and incorporating mineable reserves from the adjacent De Wildt
exploration area. Reserves in the De Wildt area are of a lower grade but will extend the life of the opencast pit
during the development of the underground operations. A mining right application pertaining to the De Wildt
property is currently awaiting approval from the Department of Mineral Resources (DMR).
A bankable feasibility study pertaining to the northern portion of the Nkwe Platinum project area (Garatau),
located on the Eastern Limb of the Bushveld Igneous Complex has progressed to the peer review phase. The
study will be completed in the second half of 2010 and Xstrata has an option to acquire a 50% participation in
the project.
The exploration programmes at the Madibeng, De Wildt and Mulunamisi properties, started in August 2008 has
yielded 126 UG2 reef intersections, with further exploration currently under way. Ten boreholes have been
completed to date at the Beestkraal properties, with the majority of the boreholes having intersected both the
Merensky and UG2 reef horizons. Exploration at the Beestkraal properties was temporarily suspended during the
economic downturn and will be revisited in October.
Markets | Coal
Thermal Coal Markets

Strong demand growth for seaborne thermal coal continued into 2010, driven primarily by growing demand for
imported coal by Chinese generators and the ongoing rollout of new generation capacity in India where
industrialisation is gaining momentum.
Demand for coal in the Pacific market outweighed the impact on demand of muted economic recovery and
lower gas prices in Europe and the US resulting in a steady improvement of coal prices during the first half of
2010.
The initial disparity in pricing between the stronger Pacific market and still weak Atlantic market narrowed
significantly towards the middle of the year as increased volumes of Atlantic supply moved into the Pacific,
primarily from South Africa to India.
Imports into China continued at very high levels during the first half, running at an annualised rate of 117 million
tonnes per annum compared to total imports for 2009 of 92 million tonnes. Strong domestic demand has driven
domestic coal prices up from 640 RMB per tonne during the first quarter to levels of around 725 RMB per tonne
more recently, basis 5500 NAR, despite increased levels of Chinese production. Demand has moderated
somewhat as the severe drought in China came to an end, resulting in increased hydro-electric power
generation. Demand for electricity, while still growing, has been impacted by the measures taken by the Chinese
government to prevent the economy from overheating. However, imported coal remains competitively priced
against domestic supply, encouraging continued use by electricity generators in the coastal and southern regions
of China.
Demand for thermal coal imports in other Asian markets also grew in the first half of 2010, increasing 18% in
Korea, 21% in Japan and 5% in India compared to the first half of 2009. In Europe, the US and other Atlantic
markets, high stock levels, a slower economic recovery and lower gas prices reduced import demand by
approximately 19% during the first half of 2010.
The thermal coal market was broadly in balance in the first half of 2010. Indonesian coal, comprising
predominantly low energy, sub-bituminous coal, accounted for the majority (83%) of global supply growth.
Australian thermal coal exports were hampered by adverse weather and the switching of production into the
buoyant metallurgical coal markets and remained in-line with 2009 levels. The increased demand from the
Pacific markets was satisfied by coal traditionally destined for the Atlantic markets. In the first half of 2010,
Colombian and South African thermal coal supplied to the Pacific market increased by more than 10 million
tonnes compared with 2009.
Spot thermal coal prices in the Pacific market remained in a range of $94-$100 per tonne for the period. Prices
in the Atlantic, as reported by the API2 and API4 indices, improved in the second quarter of 2010 due to the
steady reduction of EU stocks and demand from Asia. The API4 price increased from lows of around $81 per
tonne to recently trade in between $90-$93 per tonne. The API2 price has risen from lows around $71 during
the later part of the first quarter to recently trade in a range of $90-$95 per tonne.
At the end of March, Xstrata Coal secured contract price settlements with Japanese Power Utilities for the fiscal
year commencing 1 April 2010 at around $98 per tonne FOB basis 6322 GAR. More recently Xstrata has agreed
contract prices at around $103 per tonne for annual contracts commencing 1 July 2010. The Japanese Fiscal
Year contract price settlement is referenced to contracts with some other customers in the Pacific market, where
term and annual contracts represented 76% of Xstrata Coal’s thermal coal sales in the first half of 2010.
Xstrata’s thermal coal sales are underpinned by its position in the key thermal markets of Japan, Korea and
Taiwan, which together accounted for 75% of Xstrata’s Pacific market thermal coal sales over the same period.
Approximately 55% of export sales from South Africa in the first half of 2010 were priced on a spot or index
basis, with the balance of sales settled under fixed price term or annual contracts.
Outlook
Strong demand for imported coal in China and India and an improving, albeit muted, recovery in Atlantic
markets will support thermal markets during the second half of 2010. In Europe, a reduction in coal stocks built
up over the last year and increased gas prices during the second quarter of 2010, point to an improvement in
coal’s competitiveness as a fuel for electricity generation and some recovery in demand is expected for the rest
of the year.
Over the medium term, thermal coal markets are expected to remain robust as coal demand continues to
outpace projected supply growth, driven by economic growth in Asia and other developing economies, as China
continues on its path to industrialisation and India invests in new coal-fired generation to address their growing
electricity shortages,.
Coking coal markets

A key development in coking coal markets in 2010 was the shift from annual contract pricing to quarterly
contract pricing periods. The pricing system has been partially accepted by both suppliers and consumers,
although some contract arrangements covering a full 12 month period of pricing remain.
During the first half of 2010, pig iron production in traditional coking coal importing countries has increased
steadily and on an annualised basis reflected an increase of over 25% above 2009 levels. Demand was further
supported by the emergence of China, which was traditionally self sufficient, as a major coking coal importer. In
the first half of 2010, China imported coking coal at an annualised rate of 33 million tonnes per annum, 3
million tonnes more than in 2009. Increased demand for imports from China has been underpinned by the
restructuring of mine ownership in the Shanxi province, which resulted in coking production remaining flat
during the first quarter while Chinese annualised pig iron production increased 13% compared with 2009.
Unusually high rainfall and the consequent damage to infrastructure impacted coking coal supply from Australia
by an estimated 8 million tonnes per annum during the first quarter of 2010. Australian coking coal exports have
recovered strongly since April and for the first half of 2010 are at 18 million tonnes per annum higher than 2009
on an annualised basis. In the first half of 2010 US seaborne coking coal exports have increased by over 60% to
more than 52 million tonnes per annum, 21 million tonnes per annum higher than in 2009. The increased supply
from both Australia and the US combined with a 5 million tonne per annum increase from Canada has resulted
in a balanced market in the first half of 2010.
Stronger demand for coking coal during the first half of 2010, combined with the first quarter supply disruptions
in Australia, maintained a rising trend in spot coking coal prices which had commenced in April 2009. As supply
recovered during the second quarter and pig iron production in coal importing countries stabilised, spot prices
moderated slightly. During the first half of 2010, Xstrata secured prime hard coking coal prices through a range
of spot, quarterly benchmark and annual contracts with prices ranging from $200 to $270 per tonne with an
average in the upper end of the range. Quarterly benchmark contract prices for the second quarter of 2010
were settled in March at $200 per tonne and, in May, increased to $225 per tonne for the third quarter.
Outlook
Europe’s slow economic recovery and the measures taken by the Chinese government to slow overheating
sectors are expected to impact steel and pig iron production during the second half of 2010. In the longer term,
demand will be driven by the development of steel manufacturing capacity in China, India, Brazil and other
developing economies seeking to build infrastructure, while supply growth will be constrained by scarcity of
coking coal resources and potential infrastructure limitations. Consequently, coking coal markets are expected to
remain tight over a sustained period.
Xstrata Coal
$m 30.06.10 30.06.09 31.12.09
Revenue: operations† 3,440 3,073 6,424
Coking Australia 803 391 965
Thermal Australia 1,881 1,906 3,749
Thermal South Africa 412 387 968
Thermal Americas 344 389 742
Revenue: other 139 169 325
Coking Australia - - 22
Thermal Australia 139 166 294
Thermal South Africa - 3 9
Total revenue 3,579 3,242 6,749
Thermal Australia 2,020 2,072 4,043
Operating EBITDA 1,401 1,438 2,755
Thermal Australia 673 1,010 1,712
Coking Australia (53) (33) (87)
Thermal Australia (194) (156) (397)
Thermal South Africa (81) (69) (148)
Thermal Americas (43) (43) (85)
Operating profit 1,030 1,137 2,038
Thermal Australia 479 854 1,315
Share of Group Operating profit 31.8% 70.8% 46.6%
Australia 27.3% 60.9% 37.9%
South Africa 0.8% 1.1% 2.5%
Americas 3.7% 8.8% 6.2%
Australia 6,887 6,126 6,843
South Africa 2,300 1,792 2,239
Americas 1,882 1,285 1,744
Return on capital employed* 17.8% 27.7% 20.9%
Australia 24.2% 36.1% 27.4%
South Africa 2.1% 2.3% 5.6%
Americas 12.8% 22.1% 15.6%
Capital expenditure 756 466 1,111
Australia 590 267 662
South Africa 150 169 373
Americas 16 30 76
† Includes purchased coal for blending with mine production
OPERATING PROFIT VARIANCES

$m
Sales price* 60
Volumes 178
Unit cost – mining industry inflation 93
Operations
Xstrata Coal’s operating profit decreased by 9% to just over $1 billion in the first half of the year as higher
average prices, increased sales volumes and cost savings were more than offset by adverse foreign currency
movements.
Semi-soft sales volumes rose by 50% or 1.3 million tonnes and thermal coal sales remained consistent with the
prior period, as thermal coal production was switched into semi-soft in response to higher market prices.
Cerrejón sales volumes were at a similar level to the prior period.
Sales volumes from Prodeco operations were 3.3 million tonnes to 13 April 2010, 1 million tonnes lower than in
the first half of 2009, which included the full six months. Under the terms of the Option Agreement with
Glencore, Xstrata is entitled to earnings from Prodeco up to the completion of the transaction, which is recorded
as financial income and not included in Xstrata Coal’s reported earnings.
The recovery in global demand for steel from the second half of 2009 and the recommencement of longwall
operations at Oaky No. 1 mine contributed to a 58% increase in coking coal sales during the first half compared
to the same period last year.
Real unit cost savings of $109 million were mainly as a result of the recommencement of longwall operations at
Oaky No.1 as well as cost reduction initiatives and productivity improvements.
Substantially higher coking coal prices due to the recovery of the global steel market offset lower realised semi-
soft and thermal prices and contributing $60 million to operating profit. This compared to the first half of 2009,
when realised prices for coking coal were impacted by a number of deferrals of sales by customers in light of
market conditions. The average semi-soft price was lower than in the first six months of 2009 when the price
benefitted in the first quarter from the higher priced carryover from 2008 Japanese financial year contract year
sales.
Foreign exchange reduced Xstrata Coal’s operating profit by $398 million, as operating currencies strengthened
against the US dollar.
The lagging effect of deflation in the cost of spare parts and other steel-related items in Australia, partly offset
by higher fuel costs, benefitted first half earnings by $93 million.
Australian thermal coal

Operating profit from Australian thermal coal’s operations decreased by 44% to $479 million due to a 28%
reduction in average realised semi-soft and export thermal prices as a result of higher priced carryover tonnage
in the first quarter of 2009, compounded by the impact of the stronger Australian dollar against the US dollar.
Australian thermal coal production, including semi-soft, was in line with the first half of 2009. Semi-soft
production in New South Wales increased by 50% or 1.3 million tonnes to take advantage of higher prices. This
was offset by a loss of around 1.5 million tonnes of thermal coal due to extreme weather events at Rolleston.
South African thermal coal

South Africa’s operating profit rose by 47% to $25 million in the first half, primarily due to gains from hedging
and the impact of the stronger rand on domestic revenue.
South African production was 16% lower than in 2009, as a result of the planned shutdown of the Southstock
Opencut in the second half of 2009 having reached the end of its reserves and reduced volumes during the
ramp up phase of the new ATCOM East Opencast, which was transferred into Xstrata’s operations in December
2009 following the restructuring of the Douglas Tavistock joint venture.
The transition of the South African coal operations to three large-scale, lower cost, primarily open cut mine
complexes, continued with the successful commissioning of the Goedgevonden open pit coal mine and the
development of the ATCOM East operation. Cost savings from moving to open pit operations have been partly
offset by increased costs from lower seam height in the underground operations.
Americas
Xstrata Americas operating profit, which does not include any profits from the Prodeco Operations, decreased by
15% to $120 million due to lower prices and the impact of the weaker dollar. Real unit cost savings were
achieved due to a reduction in the strip ratio, productivity improvements and other cost reduction initiatives.
Cerrejón’s production remained in line with the corresponding period.
Coking coal
The coking coal business delivered operating profit of $406 million, an increase of 227% due to higher realised
prices and a 73% increase in production volumes following the restart of the Oaky No. 1 longwall operations in
August 2009 and increased productivity at Oaky North. Real unit cost savings were achieved from the full period
of production from Oaky No. 1. The impact of the weaker dollar partly offset the benefit of a strong operational
performance and improved prices.
SALES VOLUMES Six months to Six months to Year ended

(million tonnes) 30.06.10 30.06.09 31.12.09
Consolidated Australian sales total 27.0 23.6 52.2
Coking export 4.1 2.6 6.4
Semi-soft coking export 3.9 2.6 6.2
Thermal export 15.9 14.8 31.6
Thermal domestic 3.1 3.6 8.0
Consolidated South African sales total* 8.2 8.6 19.8
Consolidated Americas sales total** 5.0 5.0 10.1
Attributable Australian sales total 25.5 22.6 49.8
Coking export 4.1 2.6 6.4
Semi-soft coking export 3.5 2.2 5.5
Attributable South African sales total* 6.9 7.0 16.0
Average received export FOB coal price ($/t)
Australian coking 193.7 142.6 145.0
Australian semi-soft coking 123.1 169.8 122.5
Australian thermal 80.3 89.2 80.3
South African thermal 69.9 69.8 68.1
Americas thermal** 68.5 77.2 73.5
* For production reporting DTJV is included for the first six months. For financial reporting DTJV will be excluded from
Xstrata Coal’s ex-mine results as a result of the DTJV re-structuring announced on 3 March 2008.
** Excludes Prodeco
SUMMARY PRODUCTION DATA Six months to Six months to Year ended

(million tonnes) 30.06.10 30.06.09 31.12.09
Total consolidated production 38.6 38.8 84.7
Total thermal coal 30.9 34.0 72.1
Australian thermal 17.4 18.8 41.1
South African thermal* 8.2 9.8 20.8
Americas thermal** 5.3 5.4 10.2
Australian coking 3.8 2.2 6.4
Australian semi-soft coking 3.9 2.6 6.2
* For production reporting DTJV is included for the first six months. For financial reporting DTJV will be excluded from
Xstrata Coal’s ex-mine results as a result of the DTJV re-structuring announced on 3 March 2008.
** Excludes Prodeco
Developments
Xstrata Coal is advancing an extensive project pipeline which consists of 25 major brown and greenfield projects
in Australia, South Africa and Colombia. In addition to replacement capacity that will add an additional 12 years
of production to the New South Wales division, near-term growth projects, including projects due for approval in
2010 and projects currently in execution will add over 30 million tonnes per annum of new thermal coal
production. These near-term projects will reduce operating costs by approximately 10% over 2009 levels.
Goedgevonden
The recently completed Goedgevonden colliery, coal handling and processing plant and mine is now ramping up
to steady state full production in 2011.
Blakefield South
Development of the first longwall panel was completed in May 2010 and the longwall was commissioned during
June 2010. Full production capacity will be reached in the third quarter. This new operation replaces the highly
productive Beltana underground mine which ceases in late 2010 and will have an annual run of mine capacity of
8 million tonnes. The project has been delivered within its approved budget.
ATCOM
The ATCOM East project, with a capital commitment of approximately $407 million was 32% complete at the
end of June and remains within budget. The coal preparation plant is on schedule to commission in the first half
of 2011 and will produce 5.7 million run of mine tonnes per annum.
Mangoola
The greenfield project is almost 30% complete and remains within budget. The project is now scheduled to
commission its new coal handling and processing plant in the first half of 2011, three months ahead of its
previously reported completion date. Pre-strip mining is planned to commence in September and, once in full
operation, the mine will produce up to 10.5 million annual run of mine tonnes consisting of both export and
domestic quality thermal coal with a mine life of 18 years.
Newlands Northern Underground

The Newlands Northern underground extension in Queensland was 26% complete at the end of June and the
development of the first extended underground longwall block continues. The project remains within budget
and longwall coal will start in the second half of 2011.
Ravensworth North
The Ravensworth North project is located in the Hunter Valley outside of Singleton. The project will be a large
open cut mine of up to 14.5 million tonnes run of mine per annum. Provided regulatory approvals are received
in the second half of 2010, first coal from this expanding operation will commence in 2012, with full production
occurring four years after. Xstrata Coal’s share of capital to reach full production is $1.1 billion.
Ulan West
Situated within the existing Ulan mine complex near Mudgee in New South Wales the Ulan West project consists
of an additional underground longwall mining operation to the existing Ulan No. 3 mine. Following approval in
August, full production is scheduled to commence in 2014 at an annual rate of 6.7 million tonnes, at a capital
cost of $1.1 billion.
Tweefontein Optimisation
In South Africa, the Tweefontein Optimisation project feasibility study is on track to be completed early 2011
and project construction to commence in the first half of 2011. Production will increase from 8.7 to 13.6 million
tonnes run of mine per annum with improved plant yields and significantly reduced train handling times.
Wandoan
The Wandoan Coal project is currently advancing through feasibility stage. Over 1 billion tonnes of reserves have
now been proved to underpin thermal coal exports from the initial stage of up to 30 million tonnes run of mine
per annum. The Supplementary Environmental Impact Statement was submitted in November 2009 with
approval anticipated in the second half of 2010. Such approval initiates the final stage of the Mining Lease
Application which could take up to 12 months. Early works and detailed design activities on the project were
temporarily suspended due to the Australian Federal Government’s proposed Resource Super Profits Tax (RSPT)
and have now resumed.
Exploration and development planning is also under way on a further 4 billion tonne resource target, which
could underpin a new basin in Queensland with capacity in excess of 100 million tonnes per annum.
Xstrata Coal is also in the process of moving from pre-feasibility into full feasibility studies in the second half of
2010 under its exclusive right to develop a new coal export terminal at Balaclava Island, approximately 40
kilometres north of Gladstone.
United Optimisation
The United Optimisation project remains on track to complete its options analysis and selection study and
commence a feasibility study in the second half of 2010. The project involves both open cut and underground
components.
Rolleston Expansion
At Rolleston open cut mine in Queensland, a brownfield expansion to give an additional 240 million tonnes of
potentially mineable coal is at prefeasibility stage. The project will commence feasibility studies in early 2012.
Sarum
Located south east of the existing Collinsville mine, the greenfield Sarum project is analysing and evaluating a
combination of underground and open cut mine operations producing up to 10 million tonnes run of mine per
annum. Following completion of this evaluation the project will commence a feasibility study in the first half of
2012.
The new 7 million tonne run of mine per annum open cut operation will utilise truck and shovel mining methods
for around 13 years, commencing from 2013. The operation will produce approximately 60% semi soft product
with the remaining product export thermal coal.
The underground operation will utilise longwall methods to produce 4 million tonnes run of mine per annum
and have a mine life of 12 years. Saleable production will be approximately 80% semi soft with the remainder a
thermal product.
Cerrejón
Studies of the proposed staged expansion programme at Cerrejón are progressing and following completion of
the feasibility study, the first phase delivering an 8 million tonne expansion to 40 million tonnes per annum will
be presented for approval by joint shareholders by the end of 2010. Options for further expansion will move into
pre-feasibility phase in the first half of 2011.
Zonnebloem
The Zonnebloem project, situated east of Emalaheni (formerly known as Witbank), is a greenfield 7 million
tonnes run of mine per annum open cut mine. The current study phase will be completed in mid-2011 and
followed by a feasibility study in 2012 to mid-2013.
Markets | Copper
LME copper prices rose from the end of 2009, supported by recovering demand, constrained supply and
improved market expectations and appetite for commodities. The average LME price rose to $3.23 per pound
($7,130 per tonne) during the first half of the year, compared with an average of $1.83 per pound during the
first six months of 2009. However, concerns surrounding sovereign debt in Europe and China’s property market
repeatedly tested investor confidence, fuelling market volatility. From a high of $3.61 per pound ($7,951 per
tonne) in early April, LME cash copper prices hit a six-month low of $2.76 per pound ($6,091 per tonne) in early
June.
Despite the uncertain macroeconomic environment, the recovery in global copper consumption gathered
momentum through the first half of the year. China continued to drive the majority of demand growth,
consuming more than 1.5 million tonnes of imported refined copper during the half of 2010, 14% below last
year’s record levels. China’s real estate, infrastructure and consumer goods sectors powered ahead, as the large
government stimulus spend of 2009 continued to fuel domestic demand growth.
Western copper demand was more subdued during the opening months of the year, with a tentative recovery
more dependent on exports, while domestic consumption was muted by weak construction activity and low
consumer confidence throughout the major Western economies. European government austerity measures are
continuing to weigh on recovery, although the weakening Euro has provided further support to export demand.
The sluggish start to the year in Western markets along with recovering supply led to a rise in global exchange
stocks to 799,000 tonnes by mid-February. However, as the recovery has gathered pace, exchange stocks have
been drawn down during the second quarter, falling to 667,000 tonnes at the end of the first half, some 20,000
tonnes lower than at the beginning of the year, and representing only 13 days of global copper consumption.
On the supply side, high copper prices are encouraging increased supply of mined copper and there has been
limited disruption to major operations compared with recent years. However, copper supply growth remains
constrained by a limited pool of new mine projects, many of which were delayed during the global financial crisis
and the ability to accelerate project development remains a significant challenge.
Limited primary mine supply growth and high smelter concentrate demand ensured continued tightness in the
concentrate market. By the end of the first half, spot treatment and refining terms had declined to as low as $0
per dry metric tonne and 0¢ per pound. In line with this mine-smelter imbalance, miners are seeking further
concessions from smelters in the current mid-year contract negotiations. The mid-year benchmark is expected to
be concluded at around the $40 per dry metric tonne and 4.0¢ per pound level.
Outlook
Copper prices are expected to be well supported around current levels due to recovering OECD demand, limited
scrap supply growth and copper’s strong medium to longer term market outlook. However, uncertainty
surrounding European national debt levels and the outlook for Chinese economic growth is expected to lead to
ongoing price volatility throughout the second half of the year.
Extended mine development timelines and limited availability of capital have reduced expectations of global
mine supply from probable mine projects in 2015 by an estimated 2.1 million tonnes compared with growth
forecasts two years ago. While higher prices will encourage producers to accelerate the development of new
projects where possible, the availability of power, water, contract labour and infrastructure development
together with potential licensing delays and social and sovereign risk issues are all likely to constrain project
development timelines.
Custom smelters will continue to face difficult trading conditions in an environment of constrained concentrate
supply growth and growing smelting capacity, which are expected to keep treatment and refining charges near
record lows.
Xstrata Copper
$m 30.06.10 30.06.09 31.12.09
Revenue 5,879 3,687 9,223
Alumbrera, Argentina 795 564 1,256
North Queensland, Australia 885 435 913
Canada* 1,566 1,052 2,335
Collahuasi††, Chile 847 475 1,514
North Chile 1,006 588 1,766
Antamina‡, Peru 467 317 790
Tintaya, Peru 313 256 649
Operating EBITDA 1,789 1,017 2,922
Alumbrera, Argentina 331 231 543
Canada* 113 (20) 84
Collahuasi††, Chile 565 260 771
North Chile 113 85 242
Alumbrera, Argentina (52) (47) (94)
North Queensland, Australia (102) (72) (160)
Canada* (27) (41) (84)
Collahuasi††, Chile (103) (85) (199)
North Chile (51) (47) (98)
Antamina‡, Peru (46) (43) (86)
Tintaya, Peru (31) (34) (75)
Operating profit 1,377 648 2,126
Alumbrera, Argentina 279 184 449
Canada* 86 (61) -
North Chile 62 38 144
Capital Employed† 15,449 15,736 16,335
ROCE 22.5% 10.7% 16.8%
Capital Expenditure 555 377 934
Argentina 18 13 43
Australasia 214 98 263
Canada* 43 36 94
North Chile and Others 74 78 147
† Includes goodwill allocation on acquisition of Falconbridge
†† Xstrata's 44% share of Collahuasi
* Canada includes Xstrata Recycling that operates businesses in Canada, the United States of America and Asia
‡ Xstrata Copper's pro rata share of Xstrata’s 33.75% interest in Antamina

$m
Sales price* 948
Volumes 13
Unit cost – real (35)
Unit cost - CPI inflation (29)
Unit cost - mining industry inflation (9)
Unit cost - foreign exchange (142)
Other income and expenses 11
* Net of commodity price linked costs, treatment and refining charges
Buoyant commodity prices and improved copper sales volumes increased operating profit by $948 million and
$13 million respectively compared to the same period in 2009.
Provisional price settlements reduced earnings in the first half of 2010 by $20 million, compared to a positive
impact of $158 million in the same period of 2009. As at 30 June 2010, provisionally priced sales amounted to
155,829 tonnes and valued at a price of $6,503 per tonne.
High copper sales volumes from Collahuasi due to operational improvements, increased recoveries and higher
grades were offset by lower volumes due to the processing of low grade copper ore at Ernest Henry and reduced
copper grades at Antamina and Tintaya. Total sales volumes are expected to increase in the second half as a
result of improved ore grades at the Mount Isa and Ernest Henry mines.
Real unit costs decreased operating profit by $35 million compared to the first half of 2009 mainly due to an
impact of $62 million from lower copper grades at most sites, partially offset by cost benefits of $27 million from
the Kidd Metallurgical site closure and improved mining rates at Collahuasi and in North Queensland.
In addition to higher CPI inflation of $29 million, mining industry inflation impacted operating profit by $9
million due to higher energy and fuel prices across all divisions, offset by lower consumable prices in North
Queensland and Tintaya, and deflation in consumables and maintenance at Alumbrera.
The weaker US dollar on average against Australian and Canadian currencies trimmed operating profit by $142
million.
Depreciation and amortisation costs increased, mainly due to the capitalisation of projects at Mount Isa and an
adjustment to total reserve tonnes at Collahuasi, offset by favourable impacts in Canada related to the closure of
the Kidd smelter, refinery and zinc plants.
Operations
Argentina
Minera Alumbrera generated operating profit of $279 million, an increase of 52% compared to the first half of
2009, due to higher realised copper prices and lower treatment and refining charges, offset by lower gold sales
volumes, higher dividend distributions to YMAD and sea freight costs.
Copper in concentrate production remained at a similar level to the same period last year while gold production
decreased by 20% due to lower gold head grades and recoveries in line with the mine plan sequence and
increased volumes of oxidized material processed.
Australia
The North Queensland copper division, comprising the Mount Isa underground mine and smelter, Ernest Henry
mine and Townsville refinery, recorded an operating profit of $167 million in the first half of 2010, significantly
higher than the same period in 2009, primarily due to the impact of higher copper prices.
Overall the North Queensland mining operations produced 88,000 tonnes of copper in concentrate in the first
half of 2010, 14% less than in the corresponding period in 2009. Lower grades resulted in reduced copper in
concentrate production at Mount Isa, despite slightly higher volumes mined, and at the Ernest Henry open pit
mine, which reached an anticipated lower grade zone involving a higher rate of waste mining. Ernest Henry’s
performance will improve in the second half as the mine plan reaches a high grade zone and at Mount Isa as
copper grades increase in line with the mine plan.
Refined copper sales increased by 6% driven by increased production from the Townsville refinery. Increased
volumes of anode from Xstrata’s Altonorte smelter to the refinery more than offset lower production from the
Mount Isa smelter which underwent a scheduled maintenance shutdown in March for re-bricking.
Canada
The Canadian division returned to profitability in the first half, generating an operating profit of $86 million, a
$147 million improvement over the same period in 2009. Stronger metal prices, a recovery in production rates
at the mine and metallurgical plants, lower operating expenses at metallurgical facilities and lower depreciation
charges resulting from the write down of the Kidd metallurgical assets all contributed to an improved financial
performance. This improvement was partially offset by a stronger Canadian dollar relative to the US dollar and
lower treatment and refining charges for third party sourced material. The division’s operating cash flow during
the period improved by $275 million to $297 million, primarily due to higher operating EBITDA and reduced
working capital levels.
Higher grades at Kidd mine and improved mining rates compared to the first half of 2009, when two seismic
events impacted production, increased copper in concentrate production by 10% to 24,400 tonnes. Zinc in
concentrate production declined by 19% to 49,500 tonnes due to lower zinc head grades.
In the first half of 2010, the Kidd copper smelter and refinery produced 42,800 tonnes of anodes and 38,000
tonnes of cathode, an increase of 6% and 18% respectively compared to the same period in 2009 when
production levels were adversely impacted by the global slump in sulphuric acid demand, resulting in one
temporary shutdown. During the period, Xstrata completed the previously announced permanent closure of
the Kidd copper smelter, copper refinery and zinc plant as part of the consolidation of the Canadian operating
assets to improve the economic performance of the Canadian copper division.
The Horne smelter processed 372,600 tonnes of copper concentrate and produced 91,200 tonnes of copper
anodes, a 21% and 39% improvement respectively over the first half of 2009, when the operation was
impacted by a global shortage of concentrate and a dramatic collapse in demand for sulphuric acid. Following
the Kidd smelter closure, all Kidd mine concentrate is now being sent to the Horne smelter for processing. At
the same time, the volume of recyclable material procured by Xstrata Recycling for processing at the Horne
smelter increased by 6% to 51,800 tonnes.
The CCR refinery produced 139,300 tonnes of copper cathodes in the first half of 2010, in line with the same
period last year as the facility continues to operate at lower production levels due to market circumstances.
Management continues to optimize production levels and reduce operating costs to drive improved profitability
at the refinery.
Chile
Collahuasi
Xstrata's 44% share in Collahuasi generated operating profit of $462 million, an increase of 164% compared to
the first half of 2009, due to higher realised copper and molybdenum prices and improved sales volumes,
partially offset by higher depreciation charges and royalties. Xstrata's share of total copper production rose by
8% to 117,400 tonnes compared to the first half of 2009 due to increased mill throughput volumes, higher ore
grades and improved metallurgical recoveries.
North Chile
Xstrata Copper’s operations in North Chile generated an operating profit of $62 million, an increase of 63%
compared to the first half of 2009, due to higher realised copper prices, offset partially by decreased cathode
sales volumes, an unfavourable exchange rate, higher depreciation charges, higher waste volumes and increased
acid and power consumption rates at Lomas Bayas.
Mined volumes at Lomas Bayas were impacted by higher waste stripping rates and slower dynamics in the run-
of-mine (ROM) leach recoveries, which decreased cathode production by 4% to 34,600 tonnes compared to the
first half of 2009. Second half production is expected to improve due to higher ROM recoveries and as higher
grade ore from the new Fortuna pit begins to increase the flow of pregnant leach solution to the SX-EW plant.
Anode production at Altonorte increased by 9% to 123,800 tonnes compared to the previous corresponding
period mainly as a result of additional oxygen capacity commissioned in the fourth quarter of 2009, offset
partially by a major maintenance shutdown in January 2010 that was extended by eight days due to industrial
action. Management achieved a new three-year collective agreement with the Altonorte labour union on 3
January.
Peru
Antamina
Xstrata Copper’s share of Antamina’s operating profit increased by 7% to $165 million. Higher realised copper,
silver and molybdenum prices compared to the first half of 2009 were offset by a 16% decrease in copper in
concentrate sales as a result of lower production in the first half of 2010.
In spite of higher mill throughput and recoveries, copper production decreased by 8%, mainly due to a 16%
reduction in copper ore grades in line with the mine sequence plan.
Tintaya
Operating profit increased by 77% to $156 million due to higher realised copper, gold and silver prices
compared to the first half of 2009. A 5% decrease in copper production due to the planned increased
processing of stockpiled lower grade material compared to the first half of 2009 reduced copper in concentrate
and cathode sales. However, the period-on-period impact was also influenced by increased sales volumes in the
first half of 2009 which benefitted from sales that had been postponed from 2008, as a consequence of the
global financial crisis.
Higher grades and recoveries are expected to improve copper in concentrate and cathode production in the
second half of the year.
Developments
Argentina
El Pachón
Further work was undertaken to update previous feasibility studies into the El Pachón project following the 40%
increase in Mineral Resources announced last year. Additional work programs related to environmental and
technical aspects of the project will be progressed in the coming months.
Australia
The $542 million project to transform the Ernest Henry open pit mine into a major underground mine was
approved in December 2009 and work continued during the first half of 2010. Expenditure to sink the
underground shaft at Ernest Henry was suspended on 3 June 2010 as a result of the uncertainty introduced by
the Australian government’s proposed Resource Super Profits Tax (RSPT). A regional exploration programme
focused on a number of projects in the Cloncurry and Mount Isa region that hold potential to provide additional
ore feed to the Ernest Henry and Mount Isa mines was also suspended in light of the proposed RSPT.
Work recommenced on the Ernest Henry underground shaft project and on the regional exploration programme
on 2 July following the government’s decision to replace the RSPT with a revised Minerals Resources Rent Tax to
be levied on Australian iron ore and coal production only. The proposal remains subject to Senate approval.
As at 30 June, the underground decline development had reached a total of 4,480 metres and initial site works
had commenced to construct a 1.2 million tonne per annum magnetite facility to process Ernest Henry tailings.
The high-grade magnetite will be exported through the Townsville port to international steel mills for the
production of iron. Shipments are expected to begin in the first half of 2011.
A pre-feasibility study into a “starter open pit” at Mount Isa copper operations is being undertaken and work
will continue into 2011. Underground exploration drilling at Mount Isa has been focused on mineralisation
associated with the 500 orebody at the X41 Mine together with additional exploration programs in the
Enterprise mine.
Canada
Following a decision to consolidate the Canadian copper assets to improve the economic performance of this
division, the permanent closure of the Kidd copper smelter, refinery and zinc hydrometallurgical plant
commenced on 1 May and all mineral processing had stopped by mid June.
A project to extend mining operations at Kidd Mine continued on schedule and on budget. The ramp reached its
final elevation of 9,600 feet during June with full project completion on schedule in the first half of 2011.
Chile
Collahuasi
The procurement and site works for the $92 million (100% basis) expansion project to enlarge the pebble
crushing plant and concentrator water and electrical distribution systems to achieve an intermediate ore
processing capacity of 150,000 tonnes is on schedule for completion in the first quarter of 2011. Further
debottlenecking projects are planned to enable the concentrator to progressively reach a processing capacity of
170,000 tonnes per day.
At the end of July, Collahuasi announced a 40% increase to Mineral Resources which now total 7.1 billion
tonnes at an average grade of 0.82% copper and 269 parts per million (ppm) molybdenum, using a 0.34%
copper cut-off grade, representing 58 million tonnes of contained copper metal. This significant increase will
enable Collahuasi to strategically plan for the further transformation of its business. Concept studies into the
options to expand production to at least one million tonnes per annum will be completed in the first quarter of
2011.
North Chile
Work progressed on the $293 million Lomas Bayas extension project, approved in October 2009, designed to
extend the Lomas Bayas mine life by eight years to 2020 via the development of the satellite Fortuna deposit
(Lomas II). The procurement and site works for the development of the Fortuna pit and related infrastructure
remain within budget and are on schedule to reach full production in the fourth quarter of 2012. Fortuna pit
development and ore mining commenced in the second quarter of 2010 and higher grade ore is now being
trucked from Fortuna to the existing heap ore crushing facilities adjacent to the existing Lomas pit.
In 2009, Lomas Bayas published a sulphide Mineral Resource of 195 million tonnes at a copper grade of 0.44%,
using a cut-off grade of 0.3%, for the mineralization beneath the existing Lomas pit. In the first half of 2010
studies advanced to update and improve the classification of the Mineral Resource, including 2009 drilling
results, with the publication of a new resource expected in the second half of the year. An infill drilling
programme of 55,000 metres will take place in the second half.
The Altonorte metallurgical facility is advancing a project to treat smelter dust from third parties following the
approval of the project’s environmental impact declaration by the Chilean authorities during the period.
Energía Austral
Engineering and environmental impact studies relating to the proposed 1,000MW Energía Austral hydropower
project, comprising three generating facilities and a dedicated transmission line, progressed in the first half of
2010. Responses to the environmental authorities’ observations on the Rio Cuervo generating facility’s
Environmental and Social Impact Assessment (ESIA), submitted in August 2009 will be presented in the second
half of this year. The ESIAs for the Blanco and Condor generating facilities will be submitted in the first half of
2011. Commercial assessments, engineering activities and early procurement and construction activities are
under way. After receiving expressions of interest and conducting a strategic analysis, Xstrata Copper is
conducting a process to seek a partner with demonstrated capability and knowledge of the energy sector to
support the further development of the Energía Austral project.
El Morro
In the first quarter of 2010 Xstrata Copper completed the sale of its 70% interest in the El Morro project to
Canada’s New Gold Incorporated for $463 million.
Peru
Antamina
Following shareholder approval in the first week of January, construction of the $1.3 billion project (on 100%
basis) to expand milling capacity at Antamina by 38% to 130,000 tonnes per day began in the first quarter and
commissioning is scheduled to start at the end of 2011. The project will increase Xstrata Copper’s share of
copper metal output by approximately 40,000 tonnes per annum, to around 140,000 tonnes per annum.
Tintaya - Antapaccay / Coroccohuayco

In early July, Xstrata Copper announced corporate and environmental approvals for the development of the
Antapaccay orebody as a brownfield expansion and mine life extension to the Tintaya operation. The
construction team is being mobilised, initial work will start in the third quarter of 2010 and detailed engineering
is close to 50% complete. The $1.47 billion Tintaya-Antapaccay project will utilise some of Tintaya’s existing
infrastructure and increase production by 60% to an average of 160,000 tonnes of copper per year in its early
years. The Antapaccay mine is expected to start production when the Tintaya open pit closes in mid-2012 and
will extend the life of the operation by at least 20 years.
As part of the integrated strategy in southern Peru, Xstrata Copper has lodged an Environmental and Social
Impact Study with the Peruvian authorities to conduct 100,000 metres of drilling over three years to further
evaluate the Coroccohuayco deposit located approximately 10 kilometres from Tintaya.
Las Bambas
Xstrata’s Board has approved the $4.2 billion investment to develop the world-class Las Bambas project, located
150 kilometres from Tintaya-Antapaccay, including the exercise of the option contract with the Peruvian
government to transfer the land titles to Xstrata Copper. Construction is scheduled to commence in the third
quarter of 2011, subject to Peruvian government environmental approvals. Las Bambas will be a large, long life,
low cash cost operation comprising three mines feeding a 140,000 tonne per day concentrator that will initially
produce 400,000 tonnes of copper in concentrate a year from the end of 2014.
Following a detailed two-year community consultation process, in January 2010 a formal agreement was
reached with the Fuerabamba community to resettle approximately 400 families to allow the Las Bambas project
to be developed.
In May 2010, the Las Bambas Environmental and Social Impact Assessment (ESIA) was lodged with the Peruvian
authorities for evaluation, a process that is expected to be completed in the first quarter of 2011. As part of the
ESIA development, three rounds of informative workshops were conducted in the areas surrounding the project
and also the proposed pipeline route in 2009 and the study’s formal Public Audience was successfully completed
in mid July.
Further drilling is planned across the Las Bambas mineral tenements to expand the Mineral Resource base in this
district.
Philippines
The Tampakan Mining Project Feasibility Study was completed and submitted to the Philippine Government
Mines and Geosciences Bureau (MGB) on schedule in April 2010.
In late June 2010, outgoing South Cotabato Governor Fuentes approved the South Cotabato Environment Code,
a provincial ordinance that includes a ban on the use of open pit mining methods in the province. The Code runs
contrary to the Philippine Mining Act of 1995 that allows the use of open-pit mining methods where approved
by the MGB. Xstrata Copper, through its Philippine affiliate SMI, continues to engage with all stakeholders,
including the newly elected national and provincial governments, regarding the potential impact of the Code on
the proposed development of the Tampakan Project.
Xstrata Copper expects to finalise specialist studies and stakeholder engagement activities for the development
of the project’s Environmental and Social Impact Study (ESIS) and submit the report to the Philippine authorities
by the end of 2010.
Papua New Guinea

The pre-feasibility study on the Frieda River project which commenced in January 2009 is on schedule for
completion in August 2010. The field studies to support the Environmental and Social Impact Assessment (ESIA)
are over 80% complete and the ESIA is expected to be submitted in the first quarter of 2011. The first phase of
formal stakeholder engagement as part of the permitting process was conducted in April 2010.
In January 2010 a new Mineral Resource statement was announced for the Horse-Ivaal-Trukai (HIT) porphyry
deposit of 1.1 billion tonnes at 0.53% copper, 0.29 g/t gold and 0.8 g/t silver, using a cut-off grade of 0.3%
copper, representing a 26% tonnage increase over the previously published Mineral Resource.
SALES VOLUMES
30.06.10 30.06.09 31.12.09
Argentina – Alumbrera †
Copper in concentrate (t) inter-company (payable metal) - 3,421 3,421
Copper in concentrate (t) third-parties (payable metal) 73,754 67,920 135,173
Total copper (t) (payable metal) 73,754 71,341 138,594
Gold in concentrate (oz) inter-company (payable metal) - 10,016 10,016
Gold in concentrate (oz) third-parties (payable metal) 179,479 194,604 352,886
Gold in doré (oz) (payable metal) 27,665 39,476 57,924
Total gold (oz) (payable metal) 207,144 244,096 420,826
Australia – North Queensland
Refined copper – mined copper (t) 80,782 102,291 212,770
Refined copper – inter-company and third party sourced (t) 55,412 25,956 63,835
Copper in concentrate (t) (payable metal) - 1,139 1,139
Other products (payable metal) - - (204)
Gold in concentrate and slimes (oz) (payable metal) 19,279 33,562 75,302
Canada
Refined copper – mined copper (t) 24,043 22,707 38,216
Refined copper – inter-company sourced (t) 143,360 52,605 165,968
Refined copper – third party sourced (t) 11,387 105,178 126,214
Other products third-parties (t) (payable metal) - 4,190 6,326
Chile – Collahuasi ††
Copper in concentrate (t) inter-company (payable metal) 6,531 19,797 33,146
Copper cathode (t) (payable metal) 8,723 9,454 18,679
Chile – Lomas Bayas and Altonorte
Copper cathode (t) (payable metal) 33,951 37,060 74,604
Copper anode (t) inter-company (payable metal) 55,858 48,885 169,872
Copper anode (t) third parties (payable metal) 63,893 55,480 96,084
Peru – Antamina ‡
Peru Tintaya
Copper cathode – mined copper (t) 11,856 15,103 27,364
Copper cathode – third-party sourced (t) - - 501
Gold in concentrate (oz) (payable metal) 12,329 17,226 34,855
SALES VOLUMES
Six months to Six months Year ended
30.06.10 to 30.06.09 31.12.09
Mined copper sales (t) (payable metal) 408,974 439,703 911,847
Custom copper sales (t) (payable metal) 329,910 292,294 628,800
Inter-company copper sales (t) (payable metal) (67,864) (75,474) (212,387)
Total copper sales (t) (payable metal) 671,020 656,523 1,328,260
Total gold sales (oz) (payable metal) 563,959 590,250 1,254,297
Average LME copper cash price ($/t) 7,130 4,046 5,150
Average LBM gold price ($/oz) 1,152 915 973
† 100% consolidated figures
†† Including Xstrata's 44% share of Collahuasi
‡ Including Xstrata Copper's pro rata share of Xstrata’s 33.75% interest in Antamina
SUMMARY PRODUCTION DATA

30.06.10 30.06.09 31.12.09
Total mined copper (t) (contained metal) 434,147 447,509 906,898
Total mined gold (oz) (contained metal) 234,206 294,859 502,967
Total copper cathode (t) (from mined and third party material) 371,173 360,950 727,050
Consolidated C1 cash cost – post by-product credits (US¢/lb) 91.2 84.7 91.2
Markets | Nickel
Demand for nickel improved in the first half of 2010 as a result of continued growth in China and continuing
recovery in Europe, the United States and Japan. From a high of 166,476 tonnes on 8 February, LME nickel
stocks have steadily reduced as a result of improved demand, the impact on supply of protracted strikes at Vale’s
Canadian operations and the delayed ramp-up of a number of new supply projects. By the end of June, LME
nickel inventory had fallen by over 34,000 tonnes from the beginning of the year to 124,026 tonnes,
representing approximately one month of global consumption. Across industry, customer inventories remain at
low levels. The nickel price was volatile throughout the period, recovering from a low LME cash price of
$17,035 per tonne on 8 February to a six month high of $27,600 per tonne on 16 April. The price has
subsequently softened and ended the first half of the year at $19,430 per tonne. The average LME cash price
for the first half of 2010 was $21,212 per tonne, 81% higher than the average price in the first half of 2009.
High stainless steel melt rates for China and other Asian producers including South Korea, Taiwan and Japan
prevailed for the first four months of 2010. Measures taken in China to cool overheated sectors, including high-
end residential housing, coupled with a growing stainless steel inventory, slowed stainless steel output from the
region towards the end of the period. Stainless steel demand in other major producing regions, particularly
Europe and the United States, strengthened during the period in response to higher industrial production. The
rising nickel price into April moderated the pace of recovery in austenitic stainless steel production, tempering
the resultant rate of demand growth for primary nickel in stainless steel.
Demand for nickel from non-stainless steel applications recovered considerably during the first half of 2010 as a
result of higher industrial production and strong recovery in key sectors such as aerospace and power
generation.
Global production of refined nickel was constrained for the first half of 2010 due to strikes at Vale’s Canadian
operations in Sudbury and Voisey’s Bay, despite Vale’s resumption of partial operations at these sites.
Developers of several new nickel supply projects, particularly projects based upon hydrometallurgical processing
of ores, encountered unanticipated delays and slower than expected ramp-up of nickel output during the period.
Chinese output of nickel contained in nickel pig iron increased considerably in the first half of the year as
suppliers responded to higher prices and strong demand from Chinese stainless steel producers in the first four
months of the year. Recently, output of nickel pig iron fell significantly due to lower nickel prices and reduced
demand from stainless steel producers in China.
Outlook
Destocking and lower output by Chinese and other Asian stainless steel producers in response to China’s
measures to moderate growth and the normal US and European summer slowdown in stainless steel end-user
demand is expected to impact demand for nickel in the third quarter, with stronger market conditions expected
in the final quarter. Demand for nickel from the non-stainless steel sector will remain at a similar level during the
second half of the year.
Resumption of full production at Vale’s Canadian facilities and nickel pig iron output in China are expected to
underpin supply for the remainder of the year, though the latter is contingent on nickel price.
Xstrata Nickel
$m 30.06.10 30.06.09 31.12.09
Revenue 1,297 741 1,891
INO† 1,297 741 1,887
Dominican Republic - - 4
INO† 444 30 436
Dominican Republic (8) (5) (9)
INO† (208) (202) (440)
Operating profit/(loss) 226 (179) (18)
INO† 236 (172) (4)
Share of Group Operating profit 7.0% (11.2)% (0.4)%
INO† 7.3% (10.8)% (0.1)%
Dominican Republic (0.3)% (0.4)% (0.3)%
ROCE* 7.8% (5.1)% (0.3)%
Capital expenditure 700 474 1,142
INO† 165 228 443
Dominican Republic 3 3 8
South America 1 2 3
Africa 3 9 15
New Caledonia 528 232 673
Sustaining 89 42 93
Expansionary 611 432 1,049
† Includes Canadian mines, Xstrata Nickel Australasia (XNA) mines in Western Australia, Sudbury smelter and Nikkelverk refinery
OPERATING PROFIT/(LOSS) VARIANCES

$m
Operating loss 30.06.09 (179)
Sales price* 374
Volumes 116
Unit cost - CPI inflation (6)
Unit cost – mining industry inflation (4)
Foreign exchange (39)
Other income and expense (79)
Average nickel prices rose substantially compared to the first half of 2009, contributing $374 million to Xstrata
Nickel’s operating profit. Improved sales volumes and real unit cost savings positively impacted results by $165
million in total. Volumes were boosted by Nikkelverk’s first full year of production at an increased capacity of
92,000 tonnes and Nickel Rim South’s increased by-product copper and precious metals revenues, which
combined, contributed $116 million. Operating profit in the first half of 2010 of $226 million marked a
substantial improvement over the prior period. EBITDA of $436 million for the period marked a $411 million
increase from the first half of 2009.
Despite the impact of a weaker US dollar, average consolidated cash costs fell by 31% to an average of $2.84
per pound in the first half of 2010 from $4.09 per pound in the same period the previous year, largely due to
the restructuring activities taken to optimise the business throughout 2009, efficiency improvements, and the
ramping-up of the negative cash cost Nickel Rim South mine. At the end of the first half of 2010, Xstrata Nickel
was operating with a C1 cash cost of approximately $2.50 per pound at prevailing by-product credit prices, well
within the bottom half of the industry cash cost curve.
Other income and expense is a negative cost variance of $79 million which is mainly associated with the lower-
than-normal unit costs in the first half of 2009 following the write-down of inventory costs to the net realizable
value at the end of December 2008, during the credit crisis and related market downturn.
Operations
INO
At Xstrata Nickel’s Integrated Nickel Operations (INO), which comprise the Sudbury operations and Raglan mine
in Canada, Xstrata Nickel Australasia (XNA) mining operations and the Nikkelverk refinery in Norway, refined
nickel sales volumes from own mined concentrate increased by 23% in the first half of 2010 compared to the
same period last year.
Sudbury and Montcalm

Total mined nickel production from the Sudbury Operations increased by 20% over the same period last year.
The successful ramp up of Nickel Rim South mine more than offset the volume impact of the restructuring of
Sudbury operations in 2009. Nickel Rim South commenced full mine operations in April 2010 and is on target to
reach its nameplate capacity of 18,000 tonnes of nickel in concentrate per annum in 2011.
Production from the Strathcona Mill increased by 12% to 573,208 tonnes in the first half of 2010 due to
increased volumes from Nickel Rim South. Nickel in matte output from the Sudbury Smelter increased by 5% as
a result of increased volumes of feed from XNA.
Raglan
Total mined ore at Raglan fell by 3% in the first half of 2010 to 682,619 tonnes, but exceeded the targeted
annual production rate of 1.3 million tonnes. Nickel head grade also fell by 2% to 2.40% from 2.46% in line
with planned mining sequence shifts as the operations transitioned into new ore zones. Head grade is expected
to increase in the second half of the year.
Xstrata Nickel Australasia (XNA)

Nickel in concentrate production at XNA fell by 9% compared to the first half of 2009 as a result of the deferral
of the Sinclair underground development in April 2009 due to poor market conditions. The underground
development at Sinclair recommenced in April 2010, with production on track to begin in the fourth quarter of
2010. At Cosmos, total ore treated increased by 28% to 182,616 tonnes mainly due to increased mining
activity at the Prospero deposit.
Nikkelverk
Nickel metal production at the Nikkelverk refinery increased by 8% to 45,458 tonnes from 41,972 tonnes in the
same period last year as a result of maximum capacity utilisation in the integrated nickel operations. At the end
of the first half of 2010, Nikkelverk successfully recorded its first full year of production at an increased
annualised rate of 92,000 tonnes, achieved through low-cost debottlenecking and capacity enhancing initiatives.
Copper metal production rose by 9% as a result of increased feed from the poly-metallic Nickel Rim South mine.
Cobalt production decreased by 2% due to lower cobalt content from the third-party feed.
Falcondo
The Falcondo operation in the Dominican Republic remained on care and maintenance throughout the first half
of 2010, having suspended operations in August 2008 due to weak market conditions. Falcondo is traditionally
a swing producer and oil prices impact the majority of the operation’s costs.
Developments
Koniambo Project
The major Koniambo project in New Caledonia is over 50% complete and is progressing well. Dredging and
construction of the wharf were successfully completed in the first half of 2010 without environmental incident.
The port is now in use, allowing vessels to dock. In the first six months of the year, the foundations for the
furnaces in the metallurgical plant were completed, in preparation for the arrival of the completed modules from
China which will begin arriving on site in the third quarter. Earthworks to construct the conveyor route to
transport ore to the plant and the ore preparation plant are expected to be completed by the end of the year.
Accommodation for approximately 2,500 workers has been successfully installed and capacity will be increased
to 3,750 beds in the third quarter in preparation for an increase in workforce during peak on-site construction
activity from January to July 2011.
Koniambo remains on track and on budget for first ore to be processed in mid-2012, ramping up to annual
capacity of 60,000 tonnes of nickel in ferronickel within the following two years.
Sudbury
The Nickel Rim South project in the Sudbury basin was officially commissioned and transitioned to full mine
operation on 1 April 2010. The project was delivered on time and below budget with a world-class safety
record. Nickel Rim South has a mine life in excess of 12 years at a production rate of 1.25 million tonnes of ore
per year and will ramp up to full production of 18,000 tonnes of nickel in concentrate per annum in 2011.
Copper mining was reactivated at the Fraser Mine in February 2010 in light of improved market conditions and a
robust outlook for copper demand.
Raglan
Underground development at the Kikialik deposit is expected to resume in the third quarter of 2010 following its
temporary deferral in 2009 due to market conditions. Kikialik contains 1.8 million tonnes of ore at 3.1% nickel
and 0.9% copper, with a current eight year mine life and considerable further exploration potential. First ore
production from Kikialik is expected to begin at the end of the first half of 2011 and will replace declining
production at other Raglan mines to maintain Raglan’s 1.3 million tonnes per annum processing capacity. A pre-
feasibility study on the Qakimajurq project was initiated in the first half of 2010. The deposit contains 2.5
million tonnes of probable reserves grading 4.52% nickel and is expected to begin construction in 2012,
reaching its full production capacity of an average 11,000 tonnes of nickel in concentrate in 2014, with a mine
life of over 10 years based on existing reserves.
Xstrata Nickel Australasia (XNA)

Underground development at Sinclair recommenced in April 2010 with the first cut of the Phoenix decline,
having been placed on care and maintenance in April 2009 as a result of market conditions. Decline and lateral
development at Sinclair advanced to 750 metres of a planned 3,000 metres by the end of the first half, with the
concentrator expected to start operations in August. Sinclair is expected to produce 6,000 tonnes of nickel in
concentrate per annum. It will remain a swing producer and will run as a satellite operation of Cosmos to take
advantage of existing mine infrastructure and capacity while minimizing overheads.
Nikkelverk
Further low-cost debottlenecking opportunities have been identified at the Nikkelverk refinery, following
successful initiatives which enabled the operation to increase capacity to 92,000 tonnes in 2009 without
additional capital investment. A project to reduce already low acid plant SO2 emissions is in progress to bring
emissions to close to zero in 2011.
Kabanga Nickel
The Kabanga Nickel project, a 50:50 joint venture with Barrick Gold Corporation, is on schedule to complete a
feasibility study by the end of 2010. A social and environmental impact assessment is simultaneously being
prepared for submission to the Tanzanian government by the end of the year. Kabanga was granted a five-year
retention licence by the government in 2009 that will allow the project to maintain title to the property while the
execution phase is under review and align the project’s development with market conditions.
Falcondo
The feasibility study to convert the energy source for Falcondo’s process plant from oil to natural gas and to
optimise mining and plant processes has been completed. These initiatives aim to transform Falcondo from a
traditional swing producer into a lower-cost, sustainable operation, with minimum capital outlay. The site has
undergone thorough maintenance activities to preserve its processing facilities in preparation for the restart of
operations, when market conditions allow. These activities have included repairing two of the operation’s
electric furnaces, reconditioning the six transformers within the furnaces and overhauling transmission lines
between power and processing facilities.

30.06.10 30.06.09 31.12.09
INO - Europe – Nikkelverk
Refined nickel from own mines (t) (payable metal) 29,224 23,771 47,862
Refined nickel from third parties (t) (payable metal) 16,154 18,218 40,596
Refined copper from own mines and third parties (t) (payable metal) 17,841 17,288 34,021
Refined cobalt from own mines and third parties (t) (payable metal) 1,542 1,472 3,066
INO – North America
INO - Australia – XNA
Nickel in concentrate (t) third-parties (payable metal) - 1,440 2,020
Copper in concentrate (t) third-parties (payable metal) - 43 58
Cobalt in concentrate (t) third-parties (payable metal) - 9 12
Falcondo – Dominican Republic
Ferronickel (t) (payable metal) - - 236
Total nickel sales (t) (payable metal) 45,378 43,429 90,478
Total ferronickel sales (t) (payable metal) - - 236
Total copper sales (t) (payable metal) 28,648 20,565 45,763
Total cobalt sales (t) (payable metal) 1,542 1,481 3,078
Average LME nickel cash price ($/t) 21,212 11,690 14,712
Average LME copper cash price ($/t) 7,130 4,046 5,150
Average Metal Bulletin cobalt low grade price ($/lb) 18.83 12.95 15.17

30.06.10 30.06.09 31.12.09
Total mined nickel production (t) (contained metal) 27,960 28,505 57,052
Total mined copper production (t) (contained metal) 18,264 11,870 25,428
Total mined cobalt production (t) (contained metal) 520 765 1,326
Total refined nickel production (t) (payable metal) 45,458 41,972 88,577
Consolidated nickel cash cost (C1) – post by-product credits (US$/lb) 2.84 4.09 3.80
Markets | Zinc
Zinc
Global refined zinc demand increased by over 10% during the first six months of 2010 compared to the same
period last year due to rebounding economic growth spurred on by ongoing global stimulus spending and the
rebuilding of raw material, intermediate and finished goods inventories. Global consumption of galvanized steel,
including demand from the construction and automobile sectors, benefitted from increased government,
industrial and consumer spending compared to 2009. Zinc demand growth from China remained strong, up
over 15% year-on-year during the first six months of the year. At 2 million tonnes in OECD economies, demand
for zinc grew strongly, increasing by 28% on the same period in 2009, although still below the peak levels seen
in 2008.
Following the rapid recovery in demand, zinc smelters and miners expanded global output by more than 14%
year-on-year in the first half of 2010. In response to rising metal prices, most smelters and mines returned to
production after the many cutbacks and suspensions imposed in late 2008 and the first half of 2009. China,
which in recent years has been the greatest contributor to annual growth in terms of global smelter and mine
output, saw both zinc metal and zinc concentrate output up by approximately 30% in the first six months of
2010 compared to the same period in 2009.
Despite a rapid increase in domestic mined zinc production in response to stronger prices, Chinese smelters still
required 1.3 million tonnes of imported concentrates to meet their needs, a similar amount to the first half of
2009. Lower metal prices in May and June led a number of Chinese smelters, concentrators and mines to hold
back material in anticipation of higher prices.
LME zinc prices declined from a high of $2,634 per tonne in early January to end the period at $1,730 per
tonne. Despite strong demand growth for zinc metal during the period, zinc prices were impacted by Chinese
government interventions to dampen rapid growth in certain sectors in the second quarter and by steadily
increasing global supply as smelters and miners returned idled capacity to production, outstripping global
demand. Nonetheless, the average LME price of $2,155 per tonne was 63% higher than the equivalent price of
$1,322 per tonne in the first half of 2009.
Benchmark treatment charges for 2010 moved to $272.5 per tonne on a $2,500 per tonne zinc price basis
compared to $198.5 per tonne on a $1,250 per tonne zinc price basis in 2009. With global smelter production
back on-line and China’s smelters continuing to import zinc concentrates, spot treatment charges moved below
$100per tonne by mid-year after reaching above $200 per tonne at the end of 2009.
Outlook
A slowdown in Chinese economic growth and the ongoing but tentative recovery in the US and Europe are
expected to lead to a more moderate but healthy rate of demand growth for zinc in the second half of 2010 and
into 2011, driven by demand for galvanized steel and its use in vehicle production, infrastructure projects, and
consumer goods. The current tightness of supply of zinc concentrates is expected to continue and, once
demand growth picks up, may lead to a longer term shortage of mined production that could limit refined metal
production and support higher average prices for zinc.
Lead
Global demand for lead increased by 6% in the first six months of 2010 compared with the same period last
year. Increased demand was matched by a similar increase in global production and LME warehouse stocks rose
by 43,450 tonnes to 189,950 tonnes, representing approximately eight days of global consumption.
The average LME cash price of $2,084 per tonne was 56% higher than the average cash price of $1,332 per
tonne for the same period in 2009.
Production in the global automobile sector has risen significantly compared with the first six months of 2009
boosting battery shipments and consequent demand for lead. Chinese automotive, motorbike and electric
bicycle producers continue to drive steady increases in demand for lead, despite measures undertaken by the
Chinese government to curb excessive growth in some sectors.
Chinese imports and exports of refined lead were at negligible levels following the end of significant
opportunities arising from arbitrage in mid-2009. Chinese refined lead output fell in the first half of the year
and the expected resumption of production has been further delayed.
Outlook
During the first half of the year, the battery market, which constitutes 80% of global demand for lead, remained
strongly supported by demand from product manufacturers and from the replacement battery sector. Lead
prices will be supported by a continuation of this trend through 2010 and 2011.
Xstrata Zinc
$m 30.06.10 30.06.09 31.12.09
Revenue 1,868 1,295 3,450
Zinc lead Australia 251 153 545
Lead Europe 271 199 490
Zinc Europe 769 470 1,185
Zinc North America 513 437 1,126
Zinc Peru** 64 36 104
Lead Europe 7 6 32
Zinc Europe 159 54 134
Zinc North America 191 79 284
Zinc Peru** 60 32 106
Zinc lead Australia (75) (46) (112)
Lead Europe (1) (2) (2)
Zinc Europe (21) (17) (36)
Zinc North America (87) (82) (172)
Zinc Peru** (16) (16) (32)
Lead Europe 6 4 30
Zinc Europe 138 37 98
Zinc North America 104 (3) 112
Zinc Peru** 44 16 74
Australia 3.3% 1.9% 4.4%
Europe 4.5% 2.5% 2.9%
North America 3.2% (0.2)% 2.6%
Zinc Peru** 1.4% 1.0% 1.7%
Capital employed† 4,966 5,341 5,348
ROCE* 22.0% 4.7% 14.1%
Australia 102 49 152
Europe 13 12 51
North America 22 19 44
** Xstrata Zinc’s pro-rata share of Xstrata’s 33.75% interest in Antamina

$m
Sales price* 384
Volumes 55
Unit cost – mining industry inflation (15)
Xstrata Zinc’s operating profit increased to $400 million in the first half of 2010 from $84 million in the same
period of 2009. The negative impact of a weaker US dollar against the Australian and Canadian dollars was
more than offset by higher prices, increased volumes, costs savings and higher by-products revenues due to
better prices and recovery increases.
The actions taken by Xstrata Zinc to improve operational productivity contributed $121 million, which includes
$66 million from the sustainable cost savings that have been achieved across the business. Zinc and lead in
concentrate production increased by 6% and 10% respectively in the first half of 2010 compared to the same
period of 2009, due to the ongoing transformation of the business through expansions and productivity
improvements at the Mount Isa and McArthur River operations. Despite the closure of Kidd Creek zinc smelter in
May 2010, total zinc and lead metal production increased by 3,618 tonnes and 1,387 tonnes respectively
compared to the first half of 2009 as a result of all smelters producing at full capacity. Improved volumes added
$55 million to operating profit.
Integrated mine and smelter C1 costs were significantly reduced in the first half of 2010 compared with the
same period of 2009, falling by 18% from 44¢ per pound to 36¢ per pound.
Operations
Zinc Lead Australia

The operating profit for the Australian operations rose from $30 million in the first half of 2009 to $108 million
in the same period of 2010. Higher LME prices contributed $129 million and improved volumes and operational
cost savings added $59 million to the operating profit and together offset the negative impact of a weak US
dollar against the Australian dollar.
Overall operational performance at Mount Isa achieved record levels. Compared to the first six months of 2009,
mined production was 28% higher, concentrator throughput rose by 15% and zinc metal in concentrate
production increased by 9%. Head grades are expected to improve in the second half of the year.
Record mine production level of 3.5 million tonnes per annum has been maintained at George Fisher due to the
utilisation of the decline for trucking ore to the surface in conjunction with the shaft hoist. George Fisher mine
produced 1.7 million tonnes of ore for the first half of 2010, 11% more that the first half of 2009.
Black Star open cut ore production was a record for the half year at 2.1 million tonnes, 56% more than prior
year and the ongoing development of stage 2 and 3 of the ore mining profile continues to progress well.
Handlebar Hill Open Cut is being mined opportunistically at a rate of 800,000 tonnes per annum and is utilised
when concentrator capacity is identified.
The concentrator throughput was at record levels for the half year at 4 million tonnes, 15% more than the same
period of last year. The record production volumes of zinc in concentrate is 9% above the same period last year.
Lead in concentrate has increased by 23% due to processing a higher proportion of ore from George Fisher
which has a higher grade and recovery curve.
Smelter production was 3% higher than the first half of 2009 and the purchase of third party concentrates
reduced to 11,000 tonnes from 20,000 tonnes in the first half of 2009.
The open pit development at McArthur River Mine is continuing ahead of plan. During the first half of 2010,
production was up to 1 million tonnes, 22% higher than last year. The average head grade improved from 9.7%
in the first half of 2009 to 11.2% in 2010 mainly as a result of better than expected ore presentation and a
focus on dilution control. The production of zinc concentrate has exceeded original expectations and together
with higher grades in the bulk concentrate has increased zinc metal production by 28% to 88,500 tonnes.
Zinc Lead Europe

Operating profit for the European operations of $144 million was $103 million higher than the same period of
2009, mainly due to higher metal prices, costs saving and efficiency improvements.
The San Juan de Neiva plant is producing at its maximum capacity, an annualised production rate of 510,000
tonnes and saleable zinc production was 4% higher than the same period last year. Increased efficiencies and
recoveries led to a 28% rise in production of silver concentrate to 11,133 tonnes, with a silver content of 38,313
kg. The smelter produced 331,600 tonnes of saleable sulphuric acid, 8% more than in the same period of last
year.
At Nordenham, zinc production for the first half 2010 was 70,000 tonnes, a similar rate to the previous year.
At Britannia Refined Metals in Northfleet, the continuous supply of bullion from Mount Isa allowed for the
uninterrupted operation of the refinery. As a result of improvements to plant bottlenecks, lead and lead alloy
production increased to 79,000 tonnes, 3% higher than the first half of 2009. Silver production was 3.8 million
ounces, 15% lower than the previous year due to lower average silver content in the unrefined lead feed.
Zinc Lead Americas

Operating profit for the Americas operations was $148 million in the first half of 2010 compared with $13
million in the same period of 2009, mainly due to higher prices and cost cutting initiatives, partially offset by the
negative impact of a weak US dollar against Canadian dollar.
At Brunswick mine, ore processed in the first half of 2010 was 1.7 million tonnes, 3% lower than the first half of
2009. The operation is currently recovering from a series of seismic events in April. Lower throughput was offset
by cost saving initiatives and operational improvements that reduced Brunswick’s C1 cash costs by 25% relative
to the first half of 2009.
The Brunswick smelter treated 7% more feed and produced 51% more silver doré and 3% less lead metal
compared to the first six months of 2009, as the smelter focussed on high margin, silver-rich complex
concentrates and secondary feeds with lower lead grades.
Perseverance Mine processed 535,000 tonnes, a 4% increase over the first half of 2009. Lower head grades
were offset by higher throughput to maintain zinc production levels at 69,000 tonnes. Improvements to the
metallurgical process resulted in improved copper recovery to 86.2%, compared to 80.2% in 2009 and 5,000
tonnes of copper, 21% higher than in 2009.
The CEZinc refinery in Quebec produced 132,000 tonnes of cast zinc, 141,000 tonnes of cathode zinc and
213,000 tonnes of sulphuric acid, a 10% increase in zinc metal production on the first half of 2009, when there
was reduced production due to constraints in the sulphuric acid market.
Kidd Creek zinc operation produced 46,000 tonnes of saleable zinc metal, 17% less than in the same period of
2009. The plant ceased production during May following the announcement at the end of 2009 of the
permanent shutdown of the Kidd zinc and copper smelting operations.
In the first half of 2010, zinc ore mined at Antamina decreased by 15% compared with the same period of
2009. Ore processed by the concentrator increased by 11% to 6.11 million tonnes (Xstrata Zinc’s 33.75% share)
and Xstrata Zinc’s share of zinc metal in concentrate increased by 10% on 2009 to 74,600 tonnes.
Developments
Zinc Lead Australia

At the Mount Isa complex, a feasibility study is being completed into the expansion of George Fisher from its
current record level of 3.5 million tonnes per annum to 4.5 million tonnes per annum in 2013.
Production from Black Star open pit is on track to increase during 2011 to reach 4.5 million tonnes per annum.
The Black Star Open Cut Deeps $116 million project is under way and infrastructure relocation projects are on
time and on budget. This project will deepen the existing pit, targeting ore at a depth of 400 metres, 100 metres
below the current design, adding approximately 15 million tonnes of ore and extending the life of the mine at
current production rates by four years to 2016.
In McArthur River Mine test work and preliminary engineering has begun to assess the potential for heavy
medium separation for the ore. Further work is being conducted on the optimisation of the zinc concentrate
production process to improve lead recovery from the bulk concentrate without compromising the lead grade
limits in the zinc concentrate.
Zinc Lead Europe

An industrial scale demonstration plant at San Juan de Neiva in Spain utilising Xstrata’s proprietary Albion Plant
technology was commissioned at the end of June, ahead of schedule and on budget. The process, used for the
direct leaching of zinc concentrates has been developed as an alternative for treating McArthur River and other
bulk concentrates. The demonstration plant will allow for the assessment of the viability of the process on an
industrial scale, as well as showing how the technology will handle by-products.
The Nordenham zinc plant’s 20,000 tonne per year expansion project is currently under way with an approved
budget of $15 million. The expansion will allow the plant to be self sufficient in calcine and to produce 20,000
tonnes per year of saleable zinc while providing an alternative processing option for the bulk zinc-lead
concentrate from McArthur River Mine, which is currently predominantly processed by imperial (ISF) smelters. A
total of 46,000 tonnes per year of McArthur River Mine concentrate will be treated at the new installation. Basic
engineering for this fast-track project has already been completed and long delivery equipment has been
ordered. Construction works are scheduled to begin in August 2010 and zinc production is expected to start in
February 2011.
The feasibility study for the 160,000 tonnes per year expansion at Nordenham zinc plant is on track to be
completed by the end of 2010. The expansion project will involve the processing of 362,000 tonnes per year of
McArthur River Mine concentrate using Xstrata Zinc’s direct leaching proprietary technology.
The exploration programme at Pallas Green in Ireland with Xstrata Zinc’s joint venture partner, Minco Plc, has
continued to provide positive results with the discovery of a fourth high grade zone. A $10 million exploration
programme is being carried out in 2010 and has led to an update in the Inferred Resource. The new Inferred
Resource estimate total of 24.1 million tonnes at an average grade of 7.85% zinc and 1.35% lead, using a 4%
zinc and lead cut off.
Zinc Lead Americas

During the first half of 2010 exploration activities continued in northern Quebec. A feasibility study in the
Bracemac-McLeod lenses was completed in April. The project was subsequently approved and will move to a
development stage during the second half of the year. The mine will start production in early 2013 and will
contribute 324,000 tonnes of zinc metal and 40,000 tonnes of copper metal over an expected four year life. The
$151 million project will utilise the Matagami concentrator and the required additional infrastructure has already
been installed.
The CEZinc refinery in Quebec, Canada is owned by the Noranda Income Fund, a publicly traded unit trust in
which Xstrata Zinc owns a 25% interest. On 30 July, Xstrata Zinc and the Noranda Income Fund announced that
they had entered into an exclusivity agreement regarding a non-binding proposal by Xstrata Zinc to acquire all of
the outstanding units of the Noranda Income Fund not held by Xstrata for CAD3.40 per priority unit. Xstrata
Zinc currently manages the CEZinc refinery and processing facility in Quebec and supplies CEZinc with its annual
requirement of zinc concentrate through a contract which will expire in May 2017.

30.06.10 30.06.09 31.12.09
Australia – Mount Isa
Zinc in concentrate (t) third party sales (payable metal) 104,226 114,233 266,227
Zinc in concentrate (t) inter-company sales (payable metal) 37,614 7,140 7,140
Total zinc (t) (payable metal) 141,840 121,373 273,367
Lead in concentrate (t) third party sales (payable metal) - - 2,696
Lead in bullion (t) inter-company sales (payable metal) 78,836 78,352 149,605
Total lead (t) (payable metal) 78,836 78,352 152,301
Silver in concentrate (koz) third party sales (payable metal) 126 176 563
Silver in bullion (koz) inter-company sales (payable metal) 4,029 4,303 7,853
Total silver (koz) (payable metal) 4,155 4,479 8,416
Australia – McArthur River
Zinc in concentrate (t) inter-company sales (payable metal) 8,665 5,967 -
Lead in concentrate (t) third party sales (payable metal) 10,237 11,225 26,929
Silver in concentrate (koz) third party sales (payable metal) 161 128 374
Europe – San Juan de Nieva
Refined zinc (t) 246,589 233,988 481,588
Europe – Nordenham
Refined zinc (t) 73,780 63,378 140,615
Europe – Northfleet
Refined lead (t) 74,763 84,382 166,010
Refined silver (koz) 3,750 4,032 8,677
North America - Brunswick
Lead concentrate (t) inter-company sales (payable metal) 25,637 23,752 43,906
Zinc in bulk concentrate (t) third party sales (payable metal) 6,695 14,812 22,732
Lead in bulk concentrate (t) third party sales (payable metal) 4,366 12,158 18,492
Silver in bulk concentrate (koz) third party sales (payable metal) 205 731 1,162
Refined lead & Alloys (t) 41,879 47,320 87,036
Silver doré (koz) inter-company sales 7,066 4,597 8,650
North America – CEZ **
Refined zinc (t) 34,282 28,211 60,995
Perseverance
Zinc in concentrate (t) third-party sales (payable metal) 8,013 3,683 10,202
North America – Kidd Creek
Refined zinc (t) 47,405 57,101 115,833

30.06.10 30.06.09 31.12.09
Peru - Antamina zinc***
Zinc in concentrate (t) inter-company sales (payable metal) - 8,936 -
Total zinc metal third party sales (t) 402,056 382,678 799,031
Total zinc in concentrate third party sales (t) 267,152 287,262 670,970
Total lead metal third party sales (t) 116,642 131,702 253,046
Total lead in concentrate third party sales (t) 14,603 23,383 48,117
Total silver metal third party sales (koz) 3,750 4,032 8,677
Total silver in concentrate third party sales (koz) 492 1,034 2,099
Average LME zinc price($/t) 2,155 1,322 1,659
Average LME lead price $/t) 2,084 1,332 1,726
* Xstrata Zinc’s pro rata share of Lennard Shelf sales volumes (50%)
** Xstrata Zinc’s pro rata share of CEZ sales volumes (25%)
*** Xstrata Zinc’s pro rata share of zinc sales from Xstrata’s 33.75% interest in Antamina

30.06.10 30.06.09 31.12.09
Total zinc in concentrate production (t) 521,563 493,808 1,032,755
Total zinc in metal production (t)* 404,871 401,253 825,208
Total lead in concentrate production (t) 121,071 110,086 229,782
Total lead in metal production (t) 123,206 121,816 241,485
Consolidated Zinc cash cost (C1) - post by-product credits (U¢/lb) 43.34 44.57 43.45
* The closure of Kidd Creek zinc smelter in May 2010 represents a decrease of 9,540 tonnes of zinc metal compared to the first half
of 2009
Xstrata Technology Services
FINANCIAL AND OPERATING DATA

Six months Six months to Year ended
$m to 30.06.10 30.06.09 31.12.09
Revenue 65 46 114
Xstrata Technology Services supports the processes involved in mining, mineral and metallurgical processing. It
comprises Xstrata Technology, based in Brisbane, a specialist products provider and Xstrata Process Support,
based in Sudbury, an independent group which provide technological support both to Xstrata’s operations and
to third-party customers.
Xstrata Technology
In the first six months of 2010, demand for Xstrata Technology products and services improved on the
comparable period in 2009, although remained below the levels achieved prior to the global economic
downturn. The outlook for all its technologies remains healthy as mining industry project activity increases.
Albion Process™
The Albion Process™ is a low cost, simple atmospheric leach process to recover metals from refractory ores.
Interest in the technology continues to grow strongly. Xstrata Zinc has commissioned an Albion Process plant at
its San Juan de Nieva operation in Spain for the direct leaching of McArthur River Mine’s zinc concentrates. An
Albion process plant is under construction at Xstrata Zinc’s Nordenham plant in Germany. A refractory gold plant
is under construction in the Dominican Republic and will be commissioned in 2011. Two further projects are in
advanced design stages in Romania and Canada. New licences are expected to be signed in 2010, and demand
for test work is high.
Xstrata Technology also supplies design and specialist leaching equipment to enable the successful adoption of
the Albion technology. This service includes the ZipaTankTM modular tank technology and the HyperSpargeTM
oxygen injection technology, which has been successfully applied at Mount Isa Mines and at Xstrata’s San Juan
de Nieva zinc refinery.
IsaMill™
The IsaMill™ technology package significantly increases the efficiency of mineral grinding and processing.
Volumes of both orders and enquiries have improved in the first half of 2010. The final two IsaMills for
Penasquito in Mexico are currently being commissioned. The efficiency and reliability of installations is high and
market acceptance of the technology is growing quickly.
ISASMELT™
The ISASMELT™ technology package combines Top Submerged Lance smelting technology with comprehensive
engineering, supply and technology transfer to provide efficient and low emission smelters. ISASMELT™
technology is distinguished from competitors by the excellent start up, high plant availability and low operating
cost of installations, with examples including Vedanta, Southern Peru Copper, Yunnan Copper and Mopani.
Work continues on projects under construction in Kazakhstan, India and China. Commissioning of the new
copper ISASMELT™ at the Kazzinc complex in Ust-Kamenogorsk, Kazakhstan is expected before the end of the
year, followed by commissioning of the lead ISASMELT™ in 2011.
Smelting projects are highly capital intensive and long term and are expected to take longer to recover from the
financial crisis than other technologies, however enquiries increased in the last quarter. New markets for
ISASMELT™ continue to be developed, including copper converting, nickel smelting and converting, and
recycling of scrap materials.
Jameson Cell
The Jameson Cell is a high intensity flotation technology which enables low cost and efficient flotation circuits.
Orders increased significantly in the first half of the year from coal and base metals operations. Enquiries for
both new projects and expansions were strong from coal, base metals and industrial minerals businesses. An
order for Phu Kham will provide the second installation of Xstrata Technology’s new high efficiency copper
circuit design which combines an IsaMill followed with a Jameson Cell.
Tankhouse Technology (ISA Process™ & KIDD Process™)

Tankhouse technology sales and equipment deliveries were ahead of budget for the first half of the year, mainly
due to better than expected replacement plate orders in Europe, Africa and South America.
The second quarter saw a growing number of enquiries for new projects in South America and China.
Xstrata Process Support

Xstrata Process Support provides expert technical services to the minerals sector through four separate groups.
In the first half of 2010 demand for these services continued to be soft, although interest began to strengthen in
the second quarter. As in 2009, external customers accounted for approximately 25% of total revenue.
Process Mineralogy
Process Mineralogy is a mineral processing and mineral science group that utilises quantitative mineralogy,
sampling, statistics and ore benefication test work to improve concentrate grade and maximise metal recoveries
for new mine projects and existing operations. In 2010 it provided ore characterisation, plant optimisation and
process design services to Xstrata Nickel, Xstrata Copper and Xstrata Zinc’s operations in Canada and Australia
and Xstrata Alloys’ Eland platinum operation in South Africa. Demand from external companies, which had
slowed in 2009 and early 2010, is returning and is expected to increase in the second half of the year.
Extractive Metallurgy
Extractive Metallurgy provides expert pyrometallurgical and hydrometallurgical services to smelters and refineries.
Extractive Metallurgy’s engineering service, combined with its laboratory testing and piloting facilities, is used to
optimise process design and support environmental compliance projects. It identifies opportunities in the nickel,
copper and gold industries to match available technologies to specific ore types in order to allow for the
development of low-cost commercially viable processes. The group continued to see demand for its process
modelling expertise on roasters and smelters from within Xstrata and from external clients.
Process Control
Process Control is a group of highly experienced engineers based in both Sudbury, Canada and at various Xstrata
operations. Demand for these services is very strong and increasing, creating a resource shortage in this group,
which Xstrata Process Support is addressing through recruitment efforts. Process Control’s engineers are
delivering numerous improvements to Xstrata operations including Xstrata Alloys’ Eland platinum concentrator in
South Africa and for Xstrata Nickel in Canada at its Strathcona concentrator. In Sudbury, Canada, at Xstrata
Nickel’s new Nickel Rim South mine and Fraser mine projects, Process Control is helping to improve automation
and control, particularly for energy savings in the ventilation systems. In South America, Process Control is part
of Xstrata Copper’s Standard Concentrator Design team, which is designing a replicable copper concentrator
and other facilities that can be applied to Xstrata Copper's individual projects. This will enable the early ordering
of long lead time items and reduce the engineering time and costs on individual projects as well as providing
construction efficiencies.
Materials Technology
Materials Technology provides materials of construction selection, equipment construction specifications, quality
assurance, plant reliability inspections and root cause failure analyses. Plant inspections are very specialised and
are a key service to minimise unexpected plant shutdowns. In 2010 Materials Technology worked with Xstrata
Nickel and completed an asset integrity inspection at the Raglan mill in the Canadian Arctic Circle, developed
converter repair procedures for the Sudbury Smelter and reviewed materials selection, design and fabrication
procedures for the acid plant pre-heater at the Nikkelverk refinery in Norway. In addition, several planned
inspections of smelter acid plants were completed, two of which were for external companies.
Materials Technology continues to experience strong demand and as a result will expand both its workforce and
services.
Statement of directors’ responsibilities
We confirm that to the best of our knowledge:
a) the condensed set of consolidated financial statements has been prepared in accordance with IAS 34
“Interim Financial Reporting”;
b) the half-yearly report includes a fair review of the information required by DTR 4.2.7 (being an
indication of important events that have occurred during the first six months of the financial year, and
their impact on the interim report and a description of the principal risks and uncertainties for the
remaining six months of the financial year); and
c) the half-yearly report includes a fair review of the information required by DTR 4.2.8 (being disclosure of
related party transactions that have taken place in the first six months of the financial year and that have
materially affected the financial position or the performance of the Group during the period and any
changes in the related party transactions described in the last annual report that could have a material
effect on the financial position or performance of the Group in the first six months of the financial year).
The directors of Xstrata plc are listed in the Xstrata Annual Report 2009.
By order of the board
T L Reid
Director
Chief Financial Officer
3 August 2010
Independent Review Report to Xstrata plc
Introduction
We have been engaged by Xstrata plc (the Company) to review the condensed set of consolidated financial
statements in the half-yearly report for the six months ended 30 June 2010 which comprises the condensed interim
consolidated balance sheet and the related condensed interim consolidated income statement, condensed interim
consolidated cash flow statement, condensed interim consolidated statement of comprehensive income and
condensed interim consolidated statement of changes in equity and related notes 1 to 17. We have read the other
information contained in the half-yearly financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the company in accordance with guidance contained in ISRE 2410 (UK and Ireland)
“Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the Auditing
Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than
the company, for our work, for this report, or for the conclusions we have formed.
Directors' responsibilities
The half-yearly report is the responsibility of, and has been approved by, the directors. The directors are responsible for
preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United
Kingdom’s Financial Services Authority.
As noted in note 2, the annual financial statements of the group are prepared in accordance with the International
Financial Reporting Standards (IFRSs) as adopted by the European Union. The condensed set of financial statements
included in this half-yearly report has been prepared in accordance with International Accounting Standard 34, "Interim
Financial Reporting", as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-
yearly financial report based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410,
“Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards
on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of
all significant matters that might be identified in an audit. Accordingly we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial
statements in the half-yearly report for the six months ended 30 June 2010 is not prepared, in all material respects, in
accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and
Transparency Rules of the United Kingdom's Financial Services Authority.
Ernst & Young

London
3 August 2010
The maintenance and integrity of the Xstrata plc web site is the responsibility of the directors; the work carried out by the
auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any
changes that may have occurred to the financial information since it was initially presented on the web site. Legislation in the
United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other
jurisdictions.
Condensed Interim Consolidated Income Statement

For the six months ended 30 June 2010
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) (Audited) (Audited)

Before Before Before
exceptional Exceptional 6 months exceptional Exceptional 6 months exceptional Exceptional 12 months
US$m Notes items items† 30.06.10 items items† 30.06.09 items items† 31.12.09
Revenue 13,608 - 13,608 9,541 - 9,541 22,732 - 22,732
Cost of sales* (7,798) - (7,798) (5,612) - (5,612) (13,098) - (13,098)
Distribution costs (1,130) - (1,130) (807) - (807) (1,852) - (1,852)
Administrative expenses* (186) - (186) (437) - (437) (994) - (994)
Liability fair value adjustments 6 - - - - 79 79 - 350 350
Profit on loss of control of joint
venture - - - - - - - 194 194
Restructuring and closure costs 6 - - - - (40) (40) - (156) (156)
Operating profit before interest,
taxation, depreciation and
amortisation 4,494 - 4,494 2,685 39 2,724 6,788 388 7,176
Depreciation and amortisation:
- Cost of sales (1,248) - (1,248) (1,064) - (1,064) (2,388) - (2,388)
- Administrative expenses (10) - (10) (16) - (16) (31) - (31)
Impairment of assets:
- Cost of sales 6 - - - - (36) (36) - (2,553) (2,553)
Operating profit 3,236 - 3,236 1,605 3 1,608 4,369 (2,165) 2,204
Share of results from associates 6 (2) (4) (6) (40) (248) (288) (56) (277) (333)
Profit before interest and
taxation 3,234 (4) 3,230 1,565 (245) 1,320 4,313 (2,442) 1,871
Finance income 13 232 - 232 195 47 242 407 47 454
Finance costs 13 (240) (9) (249) (427) (41) (468) (754) (41) (795)
Profit before taxation 3,226 (13) 3,213 1,333 (239) 1,094 3,966 (2,436) 1,530
Income tax (expense)/benefit 14 (800) 2 (798) (339) 20 (319) (993) 324 (669)
Profit/(loss) for the period 2,426 (11) 2,415 994 (219) 775 2,973 (2,112) 861
Attributable to:
Equity holders of the parent 2,299 (11) 2,288 909 (219) 690 2,773 (2,112) 661
Non-controlling interests 127 - 127 85 - 85 200 - 200
2,426 (11) 2,415 994 (219) 775 2,973 (2,112) 861
Earnings per share (US$)

- basic 16 0.79 - 0.79 0.38 (0.09) 0.29 1.05 (0.80) 0.25
- diluted 16 0.78 - 0.78 0.38 (0.09) 0.29 1.03 (0.78) 0.25
†
Exceptional items are significant items of income and expense, presented separately due to their nature or the expected infrequency of the events giving rise
to them.
* Before depreciation, amortisation and impairment charges.
Condensed Interim Consolidated Statement of Comprehensive Income

(Unaudited) (Unaudited) (Audited)

6 months 6 months 12 months
US$m 30.06.10 30.06.09 31.12.09
Profit for the period 2,415 775 861
Income and expenses recognised directly in equity:
Actuarial losses on defined benefit pension plans (234) - (122)
Income tax 63 - 40
Gains/(losses) on available-for-sale financial assets (35) 37 209
Income tax (4) 11 (9)
Gains/(losses) on cash flow hedges (140) 321 456
Income tax 34 (88) (105)
Foreign currency translation differences (1,496) 2,265 3,930
Income tax 21 (38) (73)
(1,791) 2,508 4,326
Transfers to the income statement:
Gains on cash flow hedges (60) (27) (312)
Income tax 19 3 55
Losses on available-for-sale financial assets - - 1
Other comprehensive income (1,832) 2,484 4,070
Total comprehensive income for the period 583 3,259 4,931
Attributable to:
Equity holders of the parent 475 3,174 4,731
Non-controlling interests 108 85 200
583 3,259 4,931
Condensed Interim Consolidated Balance Sheet

As at 30 June 2010

US$m Notes 30.06.10 30.06.09 31.12.09
Assets
Non-current assets
Intangible assets 8 8,258 9,123 8,422
Property, plant and equipment 9 39,492 38,825 39,397
Biological assets 19 17 20
Inventories 31 31 44
Trade and other receivables 85 98 81
Investments in associates 1,609 1,799 1,790
Available-for-sale financial assets 319 208 364
Derivative financial assets 622 606 698
Other financial assets 338 350 348
Pension asset 4 3 1
Prepayments 14 7 29
Deferred tax assets 235 2 213
51,026 51,069 51,407
Current assets
Inventories 4,227 4,076 4,570
Trade and other receivables 2,691 2,717 3,306
Derivative financial assets 69 263 159
Other financial assets 5 238 2,210 2,424
Prepayments 114 213 232
Cash and cash equivalents 12 1,369 1,039 1,177
Assets classified as held for sale 4 118 - 549
8,826 10,518 12,417
Total assets 59,852 61,587 63,824
Condensed Interim Consolidated Balance Sheet (continued)

As at 30 June 2010

US$m Notes 30.06.10 30.06.09 31.12.09
Equity and liabilities
Capital and reserves - attributable to equity holders of Xstrata plc
Issued capital 10 1,469 1,466 1,469
Share premium 10 15,096 14,997 15,096
Own shares 10 (1,198) (1,288) (1,306)
Convertible borrowings - equity component 56 56 56
Other reserves 11 3,964 3,938 5,606
Retained earnings 14,212 12,484 12,361
33,599 31,653 33,282
Non-controlling interests 1,624 1,649 1,637
Total equity 35,223 33,302 34,919
Non-current liabilities
Trade and other payables 55 29 32
Interest-bearing loans and borrowings 12 7,732 13,229 13,252
Convertible borrowings 12 337 333 335
Derivative financial liabilities 582 494 505
Other financial liabilities 568 735 538
Provisions 2,786 2,455 2,844
Pension deficit 583 326 412
Deferred tax liabilities 5,635 5,651 5,775
Other liabilities 8 9 9
18,286 23,261 23,702
Current liabilities
Trade and other payables 3,259 3,306 3,697
Interest-bearing loans and borrowings 12 1,507 774 206
Derivative financial liabilities 523 111 52
Provisions 611 504 623
Income taxes payable 337 252 526
Other liabilities 25 77 39
Liabilities classified as held for sale 81 - 60
6,343 5,024 5,203
Total liabilities 24,629 28,285 28,905
Total equity and liabilities 59,852 61,587 63,824
Condensed Interim Consolidated Cash Flow Statement


US$m Notes 30.06.10 30.06.09 31.12.09
Profit before taxation (continuing operations) 3,213 1,094 1,530
Adjustments for:
Finance income 13 (232) (195) (454)
Finance cost 13 249 423 795
Share of results from associates 6 333 333
Profit on disposal of property, plant and equipment (2) - -
Liability fair value adjustments - (79) (350)
Profit on disposal of joint venture interest - - (194)
Depreciation and amortisation 1,258 1,080 2,419
Impairment of assets - 36 2,553
Share-based compensation plans 15 122 334
Decrease/(increase) in trade and other receivables 609 (687) (1,344)
Increase in other assets (101) (363) (186)
Decrease/(increase) in inventories 232 (288) (665)
(Decrease)/increase in trade and other payables (409) (7) 318
(Decrease)/increase in provisions (53) 137 218
Other non-cash movements (7) 5 (3)
Cash generated from operations 4,778 1,611 5,304
Income tax paid (919) (403) (749)
Interest paid (203) (366) (498)
Interest received 14 24 73
Dividends received 2 - 1
Net cash flow from operating activities 3,672 866 4,131
Purchase of property, plant and equipment (2,093) (1,329) (3,568)
Proceeds from sale of property, plant and equipment 22 7 10
Purchase of intangible assets (4) (9) (16)
Proceeds from available-for-sale financial assets - - 1
Proceeds from restructure of joint venture - - 43
Proceeds from other financial assets 5 2,250 - -
Purchase of other financial assets - (2,000) (2,000)
Acquisition of interest in associates (58) (112) (112)
Proceeds from disposal of joint ventures, net of disposal costs and cash disposed 4 463 - -
Proceeds from disposal of subsidiaries, net of disposal costs and cash disposed 3 - -
Investment in other financial assets - (54) (110)
Distributions from other financial assets 73 - -
Net cash flow from (used in) investing activities 656 (3,497) (5,752)
Issue of share capital - 5,667 5,667
Purchase of own shares (11) (6) (6)
Disposal of own shares 8 1 15
Proceeds from interest bearing loans and borrowings 70 4,087 4,892
Repayment of interest bearing loans and borrowings (3,808) (7,197) (8,748)
Payment of finance lease liabilities (28) (16) (21)
Dividends paid to equity holders of the parent (232) - -
Dividends paid to non-controlling interests (121) (72) (199)
Net cash flow from (used in) financing activities (4,122) 2,464 1,600
Net increase/(decrease) in cash and cash equivalents 206 (167) (21)
Net foreign exchange difference (21) 10 41
Cash and cash equivalents at 1 January 1,165 1,145 1,145
Cash and cash equivalents at period end 12 1,350 988 1,165
Condensed Interim Consolidated Statement of Changes in Equity

Non-
controlling Total
Attributable to equity holders of the parent interests equity
Convertible Other
Borrowings Reserves
Issued Share Own - equity (refer to Retained
US$m capital premium shares component note 11) earnings Total
At 1 January 2009 488 10,308 (1,332) 56 1,454 11,789 22,763 1,636 24,399
Comprehensive income - - - - 2,484 690 3,174 85 3,259
Issue of share capital 978 4,689 - - - - 5,667 - 5,667
Own share purchases - - (6) - - - (6) - (6)
Own share disposals - - 50 - - (49) 1 - 1
Cost of IFRS 2 equity settled share-
based compensation plans - - - - - 54 54 - 54
Dividends paid (refer note 17) - - - - - - - (72) (72)
At 30 June 2009 (unaudited) 1,466 14,997 (1,288) 56 3,938 12,484 31,653 1,649 33,302
Comprehensive income - - - - 1,668 (111) 1,557 115 1,672
Issue of share capital 3 99 (102) - - - - - -
Dividends paid (refer note 17) - - - - - - - (127) (127)
At 31 December 2009 (audited) 1,469 15,096 (1,306) 56 5,606 12,361 33,282 1,637 34,919
Comprehensive income - - - - (1,642) 2,117 475 108 583
Own share purchases - - (11) - - - (11) - (11)
Dividends paid (refer note 17) - - - - - (232) (232) (121) (353)
At 30 June 2010 (unaudited) 1,469 15,096 (1,198) 56 3,964 14,212 33,599 1,624 35,223
Notes to the Condensed Interim Consolidated Financial Statements (unaudited)
1. Corporate Information
The ultimate parent entity of the Group, Xstrata plc, is a publicly traded limited company incorporated in England and
Wales and domiciled in Switzerland. Its ordinary shares are traded on the London and Swiss stock exchanges.
The condensed interim consolidated financial statements do not constitute statutory accounts as defined in Section 435 of
the Companies Act 2006.
The interim condensed consolidated financial statements of the Group for the six months ending 30 June 2010 were
authorised for issue in accordance with a resolution of the directors on 3 August 2010.
The financial information for the full preceding financial year is based on statutory accounts for the financial year ended
31 December 2009. These statutory accounts upon which the auditors issued an unqualified opinion, did not include a
reference to any matters to which the auditors drew attention by way of emphasis without qualifying the report and did
not contain a statement under s498(2) or s498(3) of the Companies Act 2006, have been delivered to the registrar.
2. Basis of Preparation
The condensed interim consolidated financial statements of Xstrata plc and its subsidiaries (the Group) for the six months
ended 30 June 2010 have been prepared in accordance with IAS 34 ‘Interim Financial Reporting’. Accordingly, the
condensed interim consolidated financial statements do not include all of the information or disclosures required in the
annual financial statements, and should be read in conjunction with the Group’s annual financial statements for the year
ended 31 December 2009. The interim financial report for the six months ended 30 June 2010 has been prepared on a
going concern basis as the directors believe there are no material uncertainties that lead to significant doubt the entity can
continue as a going concern in the foreseeable future.
The impact of seasonality or cyclicality on operations is not regarded as significant to the condensed interim consolidated
financial statements.
The following exchange rates to the US dollar (US$) have been applied:
Average Average Average
As at 6 months to As at 6 months to As at 12 months to
30 June 30 June 30 June 30 June 31 December 31 December
2010 2010 2009 2009 2009 2009
Argentine pesos (US$:ARS) 3.9325 3.8689 3.7975 3.6361 3.7990 3.7279
Australian dollars (AUD:US$) 0.8407 0.8936 0.8065 0.7134 0.8974 0.7934
Canadian dollars (US$:CAD) 1.0638 1.0344 1.1623 1.2056 1.0533 1.1405
Chilean pesos (US$:CLP) 545.95 525.18 533.25 586.15 507.45 558.62
Colombian pesos (US$:COP) 1,917 1,947 2,144 2,321 2,043 2,153
Euros (EUR:US$) 1.2240 1.3278 1.4033 1.3349 1.4327 1.3949
Great Britain pounds (GBP:US$) 1.4945 1.5256 1.6458 1.4950 1.6173 1.5669
Peruvian Nuevo sol (US$:PEN) 2.8255 2.8451 3.0095 3.1038 2.8870 3.0098
South African rand (US$:ZAR) 7.6714 7.5266 7.7147 9.1852 7.3890 8.4057
Swiss francs (US$:CHF) 1.0774 1.0833 1.0865 1.1291 1.0356 1.0850
3. Significant Accounting Policies

The accounting policies adopted in the preparation of the condensed interim consolidated financial statements are
consistent with those followed in the preparation of the Group’s annual financial statements for the year ended 31
December 2009, except for the adoption of the following new standards as of 1 January 2010:
• IFRS 2 Group Cash-settled Share-based Payment Arrangements
The Group adopted IFRS 2 ‘Group Cash-settled Share-based Payments Arrangements’ which clarifies the accounting
for Group cash-settled transactions. This amendment also supersedes IFRIC 8 and IFRIC 11. The adoption of this
amendment has no impact on Group earnings or equity in the current or prior periods.
• IAS 39 Financial Instruments: Recognition and measurement Eligible hedged items (Amendment)
The Group adopted IAS 39 ‘Financial Instruments: Recognition and measurement Eligible hedged items (Amendment)’
which addresses the designation of a one-sided risk in a hedged item, and the designation of inflation as a hedged
risk or a portion in particular situations. The adoption of this amendment has no impact on Group earnings or equity
in the current or prior periods.
• IAS 39 Amendments to IFRIC 9 and IFRS 39: Embedded Derivatives
The Group adopted IAS 39 ‘Amendments to IFRIC 9 and IFRS 39: Embedded Derivatives’ which clarifies where a
prepayment option is considered closely related to the host contract when the exercise price reimburses the lender up
to the approximate present value of lost interest for the remaining term of the host contract. The adoption of this
amendment has no impact on Group earnings or equity in the current or prior periods.
• IFRIC 17 Distribution of Non-cash Assets To Owners
The Group adopted IFRIC 17 ‘Distribution of Non-cash Assets To Owners’ which provides guidance on accounting for
arrangements whereby an entity distributes non-cash assets to shareholders either as distribution of reserves or as
dividends. The adoption of this amendment has no impact on Group earnings or equity in the current or prior periods.
The annual financial statements of the Group for the year ended 31 December 2009 were prepared in accordance with
IFRSs as adopted by the European Union.
Comparatives
Where applicable, comparatives have been adjusted to disclose them on the same basis as current period figures. The
rights issue accounting, including the exceptional loss on the rights issue option of US$1,173 million, has been adjusted in
the comparative results for the 6 months ended 30 June 2009 to be consistent with the figures disclosed for the year
ended 31 December 2009.
4. Discontinued operations and disposals

El Morro
Profit on loss of control of joint venture
In October 2009, the Group entered into an irrevocable sale agreement to dispose of the Group’s 70% interest in El
Morro SCM, the holder of the El Morro copper-gold project in Chile, and associated rights and assets, to New Gold
Incorporated for a total cash consideration of US$463 million (refer to note 6). As the Group recovered the carrying value
of this asset through a sale transaction, the asset was classified as held for sale at 31 December 2009. The sale proceeds
were received from New Gold Incorporated on 17 February 2010.
5. Other Financial Assets

Prodeco coal assets
Following shareholder approval, the Group acquired 100% of the Prodeco Colombian coal operations (Prodeco) from
Glencore International AG (Glencore) on 3 March 2009 for a net cost of US$2 billion and the rights to Prodeco’s earnings
from 1 January 2009. The Group agreed to grant Glencore a call option to repurchase Prodeco, on any business day up to
4 March 2010, for US$2.25 billion, plus/minus the net cash paid to/received from Prodeco and all profits of Prodeco
accrued but not distributed to the Group. The investment in Prodeco is included on the balance sheet at 30 June 2009
and 31 December 2009 within current other financial assets. The profits of Prodeco are recognised as finance income in
the period earned and the call option premium is included in finance income proportionately over the life of the option
(refer to note 13). On 4 March 2010, the Group received formal notification from Glencore of the exercise of its option to
acquire the Prodeco coal operations for US$2.25 billion plus the balance of any profits accrued but not distributed to
Xstrata during the period 1 January 2009 to the completion date and the net balance of any cash invested by Xstrata.
6. Exceptional Items
Impairment of assets
At 30 June 2010, the Group performs impairment testing of non-current assets, including goodwill, if there are indicators
of impairment which suggest the full carrying value will not be recoverable in the future. The Group has updated the key
assumptions and has not recognised any impairments during the period ended 30 June 2010. The methodology and key
assumptions used to determine the recoverable amounts for the cash-generating units are outlined on pages 172 to 176
of the Group’s Annual Report 2009.
The Group completed impairment testing for all its cash-generating units at 31 December 2009. As a result of this testing,
impairments were identified at certain locations. Nickel assets in Australia, Canada and Norway were impaired by
US$2,110 million (30 June 2009 US$36 million, 31 December 2009 US$1,884 million after tax), including goodwill of
US$710 million, following the restructuring of its business. Copper and zinc assets in Canada were impaired by US$273
million (US$194 million after tax), following the announcement on 8 December 2009, that the Kidd Metallurgical site
permanently ceased the operation of its copper and zinc metallurgical plants during May 2010, as part of a plan to
restructure its Canadian metallurgical operations. The Altonorte copper operations in Chile recognised impairment charges
against its carrying value of property, plant and equipment assets of US$170 million (US$141 million after tax) due to the
ongoing challenging market conditions for custom smelting operations.
Liability fair value adjustment

The Group is required to recognise a liability at fair value representing African Rainbow Minerals Limited (ARM) Coal’s
interest in Xstrata’s South African coal operations. During the period, no gain or loss has been recognised mainly due to
the stable environment while in prior years it has been impacted due to decreasing coal prices and foreign exchange
movements (30 June 2009 US$79 million gain, 31 December 2009 US$350 million gain).
Profit on loss of control of joint venture

In October 2009, the Group entered into an irrevocable sale agreement to dispose of the Group’s 70% interest in El
Morro SCM, the holder of the El Morro copper-gold project in Chile, and associated rights and assets, to Barrick Gold
Corporation for a total cash consideration of US$463 million. The agreement granted New Gold Incorporated a right of
first refusal on the same terms as those granted to Barrick Gold Corporation. The terms of the agreement were such that
Xstrata was obliged to sell the assets to Barrick Gold Corporation or (should it exercise its option) New Gold Incorporated,
without any change to the terms or cash consideration. Xstrata lost joint control of El Morro upon entering into the sale
agreement as a result of the contractual terms in the agreement which precluded Xstrata from making any decisions
regarding El Morro’s financial and operating policies. In January 2010 New Gold Incorporated notified the Group of its
intention to exercise its right of first refusal to acquire Xstrata Copper’s interest in the El Morro copper-gold and the sales
proceeds were received on 17 February 2010. The Group recognised a gain of US$194 million (US$144 million after tax)
as a result of entering into the sale agreement and the resulting loss of joint control of the asset (refer to note 4).
Restructuring and closure costs

During 2009, restructuring and closure costs of US$156 million (US$116 million after tax) were recognised. Xstrata Nickel
recognised restructuring and closure costs of US$40 million (30 June 2009 US$40 million) which included the closure of
high-cost, end-of-life mines in Sudbury, the suspension of the Montcalm operations, significant reductions in operational
and corporate overheads and the deferral of the Fraser Morgan and Sinclair Underground growth projects. Restructuring
and closure costs of US$105 million were recognised during 2009 in relation to the closure of the Kidd metallurgical
plants during May 2010 mainly due to global smelting overcapacity, record low treatment and refining charges, increasing
operating and capital costs to run and maintain the facilities and lower demand and sales prices for sulphuric acid.
Restructuring and closure costs of US$11 million were also incurred during 2009 in Ferroalloys.
6. Exceptional Items (continued)

Share of results from associates
During 2010, an amount of US$4 million was also recognised in relation to the Group’s share of the restructuring and closure
costs recognised by Lonmin. During 2009, an impairment charge of US$241 million (30 June 2009 US$241 million) was recorded
in respect of the Group’s investment in Lonmin following changes in foreign exchange rates, operating costs, production and
commodity price outlook that have occurred since the acquisition date. An amount of US$36 million (30 June 2009 US$7 million)
was also recognised during 2009 in relation to the Group’s share of the restructuring and closure costs, impairments and the loss
on forward exchange contracts in respect of a rights issue recognised by Lonmin.
7. Segmental Analysis
Operating segments
Xstrata’s business is organised into five global commodity businesses and a technology business, each of which operates with a
high degree of autonomy.
Management monitors the operating results of each business as stand alone entities. Segment performance is evaluated based on
a number of measures including return on capital employed and operating profit before interest and tax. Finance income and
costs, and income tax are managed on a group basis.
Transfer prices between business segments are set on an arms-length basis in a manner similar to transactions with third parties.
The following tables present revenue and profit information and certain asset information regarding the Group’s operating
segments.
For the period ended

US$m items items 30.06.10 items items 30.06.09 items items 31.12.09
Revenue
External parties:
Coal – Thermal 2,776 - 2,776 2,851 - 2,851 5,762 - 5,762
Coal – Coking 803 - 803 391 - 391 987 - 987
Coal 3,579 - 3,579 3,242 - 3,242 6,749 - 6,749
Ferroalloys 783 - 783 448 - 448 1,105 - 1,105
Platinum 137 - 137 82 - 82 200 - 200
Copper 5,879 - 5,879 3,687 - 3,687 9,223 - 9,223
Nickel 1,297 - 1,297 741 - 741 1,891 - 1,891
Zinc Lead 1,868 - 1,868 1,295 - 1,295 3,450 - 3,450
Technology 65 - 65 46 - 46 114 - 114
Revenue (from continuing
operations) 13,608 - 13,608 9,541 - 9,541 22,732 - 22,732
Inter-segmental:
Copper 306 - 306 142 - 142 119 - 119
Nickel 4 - 4 3 - 3 83 - 83
Zinc Lead 69 - 69 63 - 63 282 - 282
Technology 1 - 1 3 - 3 9 - 9
Eliminations* (380) - (380) (211) - (211) (493) - (493)
Total 13,608 - 13,608 9,541 - 9,541 22,732 - 22,732
* Inter-segmental revenues are eliminated upon consolidation.
7. Segmental Analysis (continued)

Operating profit before
interest, taxation,
depreciation and amortisation
(EBITDA)
Coal – Thermal 942 - 942 1,281 79 1,360 2,325 350 2,675
Coal – Coking 459 - 459 157 - 157 430 - 430
Coal 1,401 - 1,401 1,438 79 1,517 2,755 350 3,105
Ferroalloys 229 - 229 (36) - (36) 15 (11) 4
Platinum 58 - 58 20 - 20 55 - 55
Copper 1,789 - 1,789 1,017 - 1,017 2,922 154 3,076
Nickel 436 - 436 25 (40) (15) 427 (40) 387
Zinc Lead 600 - 600 247 - 247 860 (65) 795
Technology 12 - 12 10 - 10 28 - 28
Segment EBITDA (continuing
operations) 4,525 - 4,525 2,721 39 2,760 7,062 388 7,450
Unallocated (31) - (31) (36) - (36) (274) - (274)
Operating EBITDA 4,494 - 4,494 2,685 39 2,724 6,788 388 7,176
(net of tax, continuing
operations):
Coal 2 - 2 1 - 1 3 - 3
Platinum (4) (4) (8) (39) (248) (287) (58) (277) (335)
Zinc Lead - - - (2) - (2) (1) - (1)
Total 4,492 (4) 4,488 2,645 (209) 2,436 6,732 111 6,843
Depreciation and amortisation

Coal 371 - 371 301 - 301 717 - 717
Ferroalloys 43 - 43 22 - 22 62 - 62
Platinum 17 - 17 14 - 14 31 - 31
Copper 412 - 412 369 - 369 796 - 796
Nickel 210 - 210 204 - 204 445 - 445
Zinc Lead 200 - 200 163 - 163 354 - 354
Technology 3 - 3 2 - 2 6 - 6
Depreciation and amortisation
(from continuing operations) 1,256 - 1,256 1,075 - 1,075 2,411 - 2,411
Unallocated 2 - 2 5 - 5 8 - 8
Total 1,258 - 1,258 1,080 - 1,080 2,419 - 2,419
Copper - - - - - - - 325 325
Nickel - - - - 36 36 - 2,110 2,110
Zinc Lead - - - - - - - 118 118
Total - - - - 36 36 - 2,553 2,553

Profit before interest and
taxation (EBIT)
Coal – Thermal 624 - 624 1,013 79 1,092 1,695 350 2,045
Coal – Coking 406 - 406 124 - 124 343 - 343
Coal 1,030 - 1,030 1,137 79 1,216 2,038 350 2,388
Ferroalloys 186 - 186 (58) - (58) (47) (11) (58)
Platinum 41 - 41 6 - 6 24 - 24
Copper 1,377 - 1,377 648 - 648 2,126 (171) 1,955
Nickel 226 - 226 (179) (76) (255) (18) (2,150) (2,168)
Zinc Lead 400 - 400 84 - 84 506 (183) 323
Technology 9 - 9 8 - 8 22 - 22
Segment EBIT before exceptional
items (continuing operations) 3,269 - 3,269 1,646 3 1,649 4,651 (2,165) 2,486
Unallocated (33) - (33) (41) - (41) (282) - (282)
Operating profit 3,236 - 3,236 1,605 3 1,608 4,369 (2,165) 2,204
(net of tax, continuing
operations):
Coal 2 - 2 1 - 1 3 - 3
Platinum (4) (4) (8) (39) (248) (287) (58) (277) (335)
Zinc Lead - - - (2) - (2) (1) - (1)
EBIT (continuing operations) 3,234 (4) 3,230 1,565 (245) 1,320 4,313 (2,442) 1,871
Finance income 232 - 232 195 47 242 407 47 454
Finance expense (240) (9) (249) (427) (41) (468) (754) (41) (795)
Profit before taxation 3,226 (13) 3,213 1,333 (239) 1,094 3,966 (2,436) 1,530
Income tax (expense)/benefit (800) 2 (798) (339) 20 (319) (993) 324 (669)
Profit/(loss) for the period 2,426 (11) 2,415 994 (219) 775 2,973 (2,112) 861

US$m 30.06.10 30.06.09 31.12.09
Capital expenditure -
Sustaining:
Coal 214 151 424
Ferroalloys 44 35 102
Platinum 3 3 12
Copper 230 204 498
Nickel 89 42 93
Zinc Lead 88 54 133
Technology 1 1 2
Total sustaining (from continuing operations) 669 490 1,264
Unallocated - 1 1
Total 669 491 1,265
Expansionary:
Coal 542 315 687
Ferroalloys 19 - 1
Platinum 40 17 48
Copper 325 173 436
Iron Ore 26 - 23
Nickel 611 432 1,049
Zinc Lead 49 26 114
Technology - - 1
Total 1,612 963 2,359
Total capital expenditure:

Coal 756 466 1,111
Ferroalloys 63 35 103
Platinum 43 20 60
Copper 555 377 934
Iron Ore 26 - 23
Nickel 700 474 1,142
Zinc Lead 137 80 247
Technology 1 1 3
Total (from continuing operations) 2,281 1,453 3,623
Unallocated - 1 1
Total 2,281 1,454 3,624
8. Goodwill
The value of goodwill at 30 June 2010 was US$6,471 million (30 June 2009 US$7,244 million, 31 December 2009
US$6,538 million). The decrease in the carrying value during the period ended 30 June 2010 is due to foreign currency
translation adjustments.
Refer to note 6 for impairment considerations at 30 June 2010.
9. Property, Plant and Equipment

During the period ended 30 June 2010, the Group acquired assets with a cost of US$2,277 million (30 June 2009
US$1,445 million, 31 December 2009 US$3,608 million), not including property, plant and equipment acquired through
business combinations and additions to deferred stripping costs.
The Group has made commitments to acquire property, plant and equipment totalling US$611 million at 30 June 2010
(30 June 2009 US$618 million, 31 December 2009 US$1,163 million). A portion of these commitments have been
incurred with other venturers.
Refer to note 6 for impairment considerations at 30 June 2010.
10. Issued Capital, Share Premium and Own Shares

US$m
Authorised:
1,500,000,000 ordinary shares of US$0.50 each as at 31 December 2008 and 1 January 2009 750
3,000,000,000 ordinary shares of US$0.50 each increase on 2 March 2009 1,500
4,500,000,000 ordinary shares of US$0.50 each as at 30 June 2009, 31 December 2009 and 30 June 2010 2,250
50,000 deferred shares of GBP1.00 each as at 1 January, 30 June and at 31 December 2009 and 30 June 2010 -
1 special voting share of US$0.50 as at 1 January, 30 June and at 31 December 2009 and 30 June 2010 -
2,250
Issued, called up and fully paid:
977,670,540 ordinary shares of US$0.50 each as at 1 January 2009 488
1,955,341,080 ordinary shares issued on 18 March 2009 from a shareholder rights issue 978
2,933,011,620 ordinary shares of US$0.50 each as at 30 June 2009 1,466
6,000,000 ordinary shares issued on 17 December 2009 to the ESOP 3
2,939,011,620 ordinary shares of US$0.50 each as at 31 December 2009 1,469
6,849 ordinary shares issued on 6 April 2010 on the exercise of convertible borrowings -
2,939,018,469 ordinary shares of US$0.50 each as at 30 June 2010 1,469
Share premium:
As at 1 January 2009 10,308
1,955,341,080 ordinary shares issued on 18 March 2009 from a shareholder rights issue 4,689
As at 30 June 2009 14,997
6,000,000 ordinary shares issued on 17 December 2009 to the ESOP 99
As at 31 December 2009 15,096
6,849 ordinary shares issued on 6 April 2010 on the exercise of convertible borrowings -
As at 30 June 2010 15,096
Own shares:
21,654,986 ordinary shares of US$0.50 each as at 1 January 2009 (1,332)
Proceeds from the sale of rights issue entitlements 48
16,377,594 ordinary shares acquired from rights issue on 18 March 2009 (48)
1,595,937 ordinary shares disposed during the period 50
822,529 ordinary shares purchased during the period (6)
37,259,172 ordinary shares of US$0.50 each as at 30 June 2009 (1,288)
6,000,000 ordinary shares issued on 17 December 2009 to the ESOP (102)
40,626,878 ordinary shares of US$0.50 each as at 31 December 2009 (1,306)
521,098 ordinary shares purchased during the period (11)
36,044,968 ordinary shares of US$0.50 each as at 30 June 2010 (1,198)
Rights issue
On 18 March 2009, 1,955,341,080 ordinary shares were issued under a rights issue which was structured as an issue of 2
new ordinary shares at a price of GBP2.10 per share for every 1 existing ordinary share held. The net proceeds from the rights
issue were US$5,667 million (after US$126 million of capital raising costs) and the number of shares in issue of Xstrata plc
following the completion of the rights issue was 2,933,011,620.
Actuarial losses
An actuarial loss was recognised in retained earnings during the 6 months ended 30 June 2010 as a result of a decrease in
discount rates. The change in the discount rates is due to the decrease in long-term AA Corporate bond yields during 2010
from 2009.
11. Reconciliation of Changes in Equity
Other reserves
Net
unrealised Foreign
Revaluation Other gains/ currency
US$m reserves reserves (losses)* translation Total
At 1 January 2009 1,440 1,229 (107) (1,108) 1,454
Available-for-sale financial assets - - 37 - 37
Gains on cash flow hedges - - 321 - 321
Realised gains on cash flow hedges - - (27) - (27)
Foreign currency translation differences - - - 2,265 2,265
Deferred tax - - (74) (38) (112)
At 30 June 2009 1,440 1,229 150 1,119 3,938
Available-for-sale financial assets - - 172 - 172
Realised losses on available-for-sale financial assets - - 1 - 1
Gains on cash flow hedges - - 135 - 135
Foreign currency translation differences - - - 1,665 1,665
Deferred tax - - 15 (35) (20)
As at 31 December 2009 1,440 1,229 188 2,749 5,606
Available-for-sale financial assets - - (35) - (35)
Losses on cash flow hedges - - (124) - (124)
Foreign currency translation differences - - - (1,496) (1,496)
Deferred tax - - 44 21 65
As at 30 June 2010 1,440 1,229 21 1,274 3,964
*Excludes amounts attributable to non-controlling interests.

12. Interest-bearing Loans and Borrowings

US$m at 30.06.10 at 30.06.09 at 31.12.09
Current:
At amortised cost:
Bank overdrafts 19 51 12
Bank loans – other unsecured 40 40 46
Capital market notes 1,381 547 97
Non-controlling interests loans - 9 5
Other loans 1 101 -
Obligations under finance leases and hire purchase contracts 66 26 46
1,507 774 206
Non-current:
At amortised cost:
Syndicated bank loans - unsecured 100 3,938 3,827
Bank loans - other unsecured 193 202 174
Capital market notes 7,082 8,811 8,924
Non-controlling interests loans 81 81 81
Obligations under finance leases and hire purchase contracts 153 115 135
Other loans 123 82 111
7,732 13,229 13,252
Non-current:
At amortised cost:
Convertible borrowings 337 333 335
Total 9,576 14,336 13,793
Less cash and cash equivalents (1,369) (1,039) (1,177)
Net debt excluding hedges* 8,207 13,297 12,616
Hedges** 170 (203) (326)
Net debt including hedges* 8,377 13,094 12,290
For the purpose of the Condensed Consolidated Cash Flow Statement, cash and cash
equivalents comprise the following:
Cash and cash equivalents 1,369 1,039 1,177
Bank overdrafts (19) (51) (12)
1,350 988 1,165
* Net debt is defined as loans and borrowings net of cash and cash equivalents.
** Derivative financial instruments that have been used to provide an economic hedge of capital market notes have been included above
to reflect a more accurate net debt position of the Group at period end.
Syndicated bank loans

The Club Facility was amended on 9 April 2010 to decrease the facility amount to US$3,000 million and is scheduled to
mature on 30 September 2011. The facility was undrawn at 30 June 2010.
Convertible borrowings
During the 6 months ended 30 June 2010, 0.03% of the US$375 million of convertible bonds was converted by the holders
(refer to note 10). Following the conversions that occurred during 2010, the remaining number of ordinary shares that could
be issued under the bond at 30 June 2010 was 25,673,643.
Cash and cash equivalents

During the 6 months ended 30 June 2010, the Group entered into new finance leases and hire purchase contracts to
purchase various items of plant and equipment for US$58 million (six months ended 30 June 2009 US$34 million, year ended
31 December 2008 US$67 million) which did not require the use of cash and cash equivalents. As such, these items are not
included in the net cash flow used in investing and financing activities in the Condensed Consolidated Cash Flow Statement.
13. Finance Income and Costs

US$m 30.06.10 30.06.09 31.12.09
Finance income:
Bank and interest received from third parties 51 36 46
Call option premium 42 83 208
Dividends 2 - 1
Earnings from other financial assets 79 70 146
Foreign currency gains on other loans* 40 - -
Hedge ineffectiveness 18 - -
Other - 6 6
Finance income before exceptional items 232 195 407
Gain on forward exchange contracts in respect of the rights issue - 47 47
Exceptional finance income - 47 47
Total finance income 232 242 454
Finance costs:
Amortisation of loan issue costs 7 4 5
Convertible borrowings amortised cost charge 2 2 4
Discount unwinding 59 59 100
Finance charges payable under finance leases and hire purchase contracts 11 3 6
Interest on bank loans and overdrafts 17 46 89
Interest on convertible borrowings and capital market notes 109 162 295
Interest on non-controlling interests loans 3 3 6
Interest on other financial liabilities 7 9 12
Foreign currency losses on other loans* - 114 182
Hedge ineffectiveness - - 17
Other 25 25 38
Finance cost before exceptional items 240 427 754
Loan issue costs written off on facility refinancing 9 41 41
Exceptional finance cost from continuing operations 9 41 41
Total finance cost from continuing operations 249 468 795
* These amounts mainly relate to foreign currency gains and losses on US dollar inter-company loans in Australian entities.
14. Income Taxes
Significant components of income tax expense for the periods ended:

US$m 30.06.10 30.06.09 31.12.09
Consolidated income statement
Current tax:
Based on taxable income of the current year 706 359 1,093
Prior year adjustments under/(over) provision (15) 15 (72)
Total current taxation charge for the period 691 374 1,021
Deferred taxation:
Origination and reversal of temporary differences 134 (29) (549)
Change in tax rates 1 (2) (9)
Deferred tax expense arising from write-down, or reversal of previous write-down, of a
deferred tax asset - - 149
Prior year under/(over) provision (28) (24) 57
Total deferred taxation charge/(credit) for the period 107 (55) (352)
Total taxation charge reported in consolidated income statement 798 319 669
UK taxation included above:

Current tax 1 1 1
Deferred tax - - -
Total taxation charge/ (credit) 1 1 1
Recognised directly in equity

Deferred tax:
Available-for-sale financial assets 4 (11) 9
Cash flow hedges (53) 85 50
Other equity classified items (84) 38 33
Total taxation charge reported in equity (133) 112 92
The amounts above include the tax charge attributable to exceptional items.
15. Related Parties

The list of principal subsidiaries, joint ventures and associates as at 30 June 2010 is consistent with those disclosed in the
Group’s annual financial statements for the year ended 31 December 2009 as outlined on pages 198 to 200.
The Group entered into the following transactions, in the ordinary course of business, with Glencore International AG
(Glencore):
US$m 30.06.10 30.06.09 31.12.09
Glencore*:
Sales** 4,192 3,177 7,688
Purchases 352 193 537
Treatment and refining charges 17 80 344
Treatment and refining revenue 5 3 7
Agency and other charges 42 29 66
Call option premium (refer to note 5 and 13) 42 83 208
Earnings from other financial assets (refer to note 5 and 13) 79 70 146
Amounts payable 103 51 80
Amounts receivable 535 423 622
Other financial assets (refer to note 5) 238 2,206 2,424
* Includes share of joint ventures
** No provision for doubtful debts has been raised in respect of transactions with Glencore
Included in the transactions with Glencore are US$552 million (30 June 2009 US$482 million, 31 December 2009
US$1,329 million) of back to back sales whereby the title to the goods has passed to Glencore but the goods are then on-
sold to customers at the same sales price that the Group received.
Refer to note 5 for details of the Group’s acquisition and subsequent disposal of the Prodeco coal assets.
There were no significant changes in the terms of the long-term contracts with Glencore as outlined on pages 201 to 204
of the Group’s annual financial statements for the year ended 31 December 2009.
16. Earnings Per Share

US$m 30.06.10 30.06.09 31.12.09
Continuing operations:
Profit before exceptional items attributable to ordinary equity holders of the parent from
continuing operations 2,299 909 2,773
Exceptional items from continuing operations (11) (219) (2,112)
Profit attributable to ordinary equity holders of the parent from continuing operations 2,288 690 661
Interest in respect of convertible borrowings 9 10 19
Profit attributable to ordinary equity holders of the parent for diluted earnings per share 2,297 700 680
Weighted average number of shares (000) excluding own shares:

For basic earnings per share 2,902,329 2,390,534 2,646,871
Effect of dilution:
- Share based payments (000) 29,466 13,672 26,525
- Convertible borrowings 25,673 25,680 25,680
For diluted earnings per share 2,957,468 2,429,886 2,699,076
On 18 March 2009, 1,955,341,080 ordinary shares were issued under a rights issue which was structured as an issue of 2
new ordinary shares at a price of GBP2.10 per share for every 1 existing ordinary share held. The theoretical ex-rights price
for an ordinary share was GBP3.41.
17. Dividends Per Share

US$m 30.06.10 30.06.09 31.12.09
Declared and paid* 232 - 233
Proposed 145 - -
377 - 233
*This only includes amounts paid to the parent equity holders and not non-controlling interest holders.
The Group has proposed an interim 2010 dividend of 5.0 cents per ordinary share (2009 – nil cents per ordinary share) to
be paid on 8 October 2010. The 2009 final dividend of 8.0 cents per ordinary share was paid on 14 May 2010.

Xstrata Half Yr Report 2010

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Xstrata Half Yr Report 2010

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Xstrata plc Half-Yearly Report

six months ended 30 June 2010

Key Financial Results

Six months to Six months to %

Attributable profit* 2,299 909 153

Earnings per share (basic)* $0.79 $0.38 108

Net debt to net debt plus equity 19% 28% (32)

Dividends declared and paid (2009 final) 8.0¢ - -

Chief Executive’s Report

Growth from the portfolio

Industry-leading copper growth

Tier one mine to transform Xstrata Nickel

High return growth in thermal coal

Leveraging Xstrata Zinc’s resource base

Ferrochrome efficiencies and growth in platinum

The next transformation

Basis of presentation of financial information

Consolidated operational results

OPERATING PROFIT VARIANCES $m

CURRENCY TABLE TO $ Average Average % At At At

AVERAGE COMMODITY PRICES Six months to Six months to %

EARNINGS SUMMARY Six months to Six months to Year ended

OPERATING PROFIT SENSITIVITIES Impact on Indicative

10% movement AUD 133 504

Cash Flow, Net Debt and Financing Summary

MOVEMENT IN NET DEBT Six months to Six months to

NET DEBT SUMMARY

Treasury Management and Financial Instruments

Consolidated Capital Expenditure

Acquisitions and disposals

DIVIDEND DATES 2010

XTA LSE XTA SWX

SHARES IN ISSUE FOR EPS CALCULATIONS Number of

PUBLICLY DISCLOSED MAJOR SHAREHOLDERS Number of % of

Principal risks and uncertainties

Ferrochrome and vanadium

Platinum Group Metals (PGM)

OPERATING PROFIT/(LOSS) VARIANCES

Ferrochrome and vanadium

Platinum Group Metals (PGM)

SUMMARY PRODUCTION DATA

Ferrochrome and vanadium

Platinum Group Metals

Thermal Coal Markets

Coking coal markets

OPERATING PROFIT VARIANCES

* net of commodity price linked costs, treatment and refining charges

Australian thermal coal

South African thermal coal

SALES VOLUMES Six months to Six months to Year ended

SUMMARY PRODUCTION DATA Six months to Six months to Year ended

Newlands Northern Underground

OPERATING PROFIT VARIANCES

Tintaya - Antapaccay / Coroccohuayco

Papua New Guinea

SUMMARY PRODUCTION DATA

OPERATING PROFIT/(LOSS) VARIANCES

Sudbury and Montcalm

Xstrata Nickel Australasia (XNA)

Xstrata Nickel Australasia (XNA)

SALES VOLUMES Six months to Six months to Year ended

SUMMARY PRODUCTION DATA Six months to Six months to Year ended

OPERATING PROFIT VARIANCES