KIDD CREEK MINE (MINE D)

Xstrata Copper Canada has announced that it will permanently cease operation of its copper and zinc metallurgical plants at the Kidd Metallurgical site in Timmins, Canada, on 1 May 2010, as part of a plan to restructure its Canadian metallurgical operations. The Kidd mine and concentrator will remain in operation.

During the year ended, the Kidd Mine received approval to extend the mining zone at Mine D from 9,100 feet to 9,500 feet. Also reported that a number of key environmental initiatives were completed during 2008, including improvements to tailing effluent quality at the Kidd Metallurgical site, and increased capture of fugitive lead emissions at Kidd smelter and fugitive arsenic emissions at the Horne smelter. The Kidd zinc hydrometallurgical plant produced 121,193 tonnes of zinc metal, representing a 15% decrease from 2007, due to a six week strike in the fourth quarter of 2008. During the year, cost reduction initiatives were implemented in the cellhouse and casting to improve operational efficiencies. A maintenance shutdown is planned for the second quarter of 2009

Xstrata Copper Canada says it has reached a tentative agreement with executives at the Canadian Autoworkers Union Local 599 for the renewal of the collective agreement at the Kidd Metallurgical site near Timmins, Ont.