Xstrata

We started our activities in August 2004, when Xstrata plc was awarded the Las Bambas Mining Project following international bidding fostered by Peru’s Agency for the Promotion of Private Investment (Proinversión). Our successful bid of US $121 million was three times the base price set by Proinversión.

From October 2004 to the present, we have paid US $92.5 million plus IGV (General Sales Tax) to the Peruvian government. Of this amount, we have used US $47 million as an initial contribution to establish a fund known as the Las Bambas Mining Project Social Contribution Trust Fund.

Since beginning our operations, we have initiated major investments and research, and we have implemented sustainable community development projects throughout the project’s area of influence. In March 2005, we began our exploration activities in Las Bambas, and, by the end of 2008, we will have completed our pre-feasibility studies.

On May 18, 2006, Xstrata acquired Tintaya mining company, located in the Espinar province in Cusco.

With the acquisition of the Falconbridge mining company on Aug. 21, 2006, we obtained a 33.75 percent share of the Antamina mining company.

The growth we have achieved with the Las Bambas Mining Project and our Tintaya and Antamina mines led to the establishment of the Southern Peru Division at the end of 2007. This has allowed us to integrate our strategies for the operations and projects in those areas.