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Mine to Market - Ernest Henry Mining

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2 : mine <strong>to</strong> market<br />

Steve de Kruijff<br />

WELCOME<br />

As you would all be aware, the current unprecedented global financial crisis is<br />

severely impacting most industries, including the resources industry. While Xstrata<br />

as a company is well positioned <strong>to</strong> weather the <strong>to</strong>ugh times ahead, the turmoil in<br />

financial markets coupled with a high cost environment and substantially lower<br />

commodity prices presents us with significant challenges. At our north Queensland<br />

operations, we need <strong>to</strong> take a set of deliberate, measured responses <strong>to</strong> optimise<br />

the cashflow from our operations and <strong>to</strong> ensure that our businesses remain<br />

sustainable in the longer term. Over the coming months we will be initiating a<br />

number of cost improvement and strategic business initiatives <strong>to</strong> ensure that our<br />

north Queensland Copper and Zinc operations meet these objectives.<br />

Water conservation remains a key focal point for our north Queensland operations.<br />

The low rainfalls recorded during the 2007/2008 north west Queensland wet<br />

season have required us <strong>to</strong> implement new initiatives <strong>to</strong> find large-scale water<br />

savings within our operations. Therefore we must remain committed <strong>to</strong> doing<br />

everything we can <strong>to</strong> reduce our fresh water usage and <strong>to</strong> maximise our recycled<br />

water usage in order <strong>to</strong> meet our future 30% reduction target if the water levels<br />

continue <strong>to</strong> decline. We also encourage you <strong>to</strong> do your bit, both at work and at<br />

home, <strong>to</strong> conserve this precious resource. We thank you for contributing your<br />

water-saving initiatives as part of our internal campaign <strong>to</strong> reduce water and hope<br />

you continue <strong>to</strong> do so. Please refer <strong>to</strong> page three for an overview of our<br />

water-saving initiatives throughout our north Queensland operations.<br />

During Oc<strong>to</strong>ber, George Fisher <strong>Mine</strong>’s $10 million KG53 underground incline/<br />

decline project, which now links George Fisher North and South, was successfully<br />

completed. This project is a significant step for Xstrata Zinc’s mining operations in<br />

Mount Isa and we congratulate all those involved in completing this project<br />

successfully and ahead of schedule.<br />

You will notice that we have included a publications survey inside this edition.<br />

We value your opinion and want <strong>to</strong> know what you, as employees and<br />

stakeholders of Xstrata North Queensland, think of our two key publications –<br />

<strong>Mine</strong> <strong>to</strong> <strong>Market</strong> newsletter and the annual Sustainability Reports. We encourage<br />

you all <strong>to</strong> take the time <strong>to</strong> fill out this survey so we can better understand your<br />

expectations and ensure our publications continue <strong>to</strong> meet your needs.<br />

By completing the survey, you have the chance <strong>to</strong> win one of five 8GB Apple<br />

iPod Nanos. For more information and your chance <strong>to</strong> win, please refer <strong>to</strong> the<br />

enclosed survey.<br />

Kevin Hendry<br />

STEVE DE KRUIJFF<br />

CHIEF OPERATING OFFICER<br />

Xstrata Copper North Queensland<br />

KEVIN HENDRY<br />

EXECUTIVE GENERAL MANAGER<br />

Xstrata Zinc Mount Isa<br />

4,500<br />

10%<br />

FRONT COVER<br />

Monica Thomas, Senior Training Advisor,<br />

Mount Isa Copper Operations.<br />

CONTACT THE EDITOR<br />

Input from all Xstrata North Queensland operations<br />

is invited. Any articles, innovations, achievements,<br />

ideas or suggestions are very welcome. Please contact<br />

Catherine Peters, Community Relations, Mount Isa <strong>Mine</strong>s<br />

on email: cpeters@xstratacopper.com.au<br />

or phone: 4744 3140.<br />

XSTRATA STOCK PRICE<br />

Xstrata is listed on the London and Zurich<br />

s<strong>to</strong>ck exchanges. As at 7 November 2008<br />

the Xstrata share price on the London<br />

S<strong>to</strong>ck Exchange (XTA.L) was 10.22 (GBp).<br />

Price (p)<br />

Volume (m)<br />

4,000<br />

3,500<br />

3,000<br />

2,500<br />

2,000<br />

1,500<br />

1,000<br />

20<br />

10<br />

May-2008 Jul-2008 Sep-2008<br />

0%<br />

-10%<br />

-20%<br />

-30%<br />

-40%<br />

-50%<br />

-60%<br />

-70%<br />

-80%<br />

Xstrata PLC<br />

Percentage<br />

Date

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