EL PACHON

Xstrata Copper announced increases to total Mineral Resources at the Las Bambas and Corroccohuayco projects in southern Peru and at El Pachón in Argentina.

Work continued to update feasibility studies, with a particular focus on the impact of the new fiscal regime being proposed by the federal government on the project's economics. No decision has yet been taken as to the likely timing of any final feasibility study on the El Pachón project.

Reported that In March 2008 a Mineral Resource estimate was included in the Group's reserves and resources statement for the first time, based on a full review of the existing information and the 2006-07 summer drilling programme. The updating of feasibility work on El Pachón continued during the half, with a particular focus on the impact of the new fiscal regime being proposed by the federal government on the project’s economics In the first quarter of 2008 approximately 30,000 metres of drilling and environmental baseline work is being completed during the summer work programme. Xstrata Copper will make a decision on whether or not to scale up activities and proceed into the Final Feasibility stage of the project during the first half of 2008 after completing a review of the overall economics of the project and evaluating the other findings of the pre-feasibility study.