Las Bambas Project

Joe Albright - Project Director 18 September 2011

Agenda

Project Overview

Highlights

Challenges

Initiatives

Schedule

Site Photographs

Nueva Fuerabamba construction camp

Description Location: Apurimac, Peru Ownership: 100% Mineral Resource: 1.55 Bt @ 0.61% Cu Concentrator: 140ktpd, 2 grinding lines Production: 400ktpa Cu for first five

years, average over LOM 315ktpa Cu Approved capital cost: US$4.23 billion LOM: 18 years

Project Status Project approved by Xstrata August 2010 ESIA approved March 2011 Engineering/Procurement 41% complete Commitments at $ 1.2 billion (on target) Nueva Fuerabamba urbanisation in

construction (earth works) Site early works commenced H1 2011

Project Overview

Copper in resource

Crusher transported to site

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2005 2008 2010

Measured Indicated Inferred

Mt Cu

Project location

Project location continued

60% Model Reviews completed

Productivity better than budgeted

Manhours under budget

Power line, Railroad, and Port expansion engineering progressing

Off-Site access roads design complete

Hazard & Operability Reviews (Hazop) on process plant completed

Risk Assessments completed

Engineering highlights

Primary Crusher 3D rendition Hazop

Las Bambas concentrator

Major process plant equipment ordered (approximately 45% of equipment priced and committed)

Structural steel, re-bar, and concentrate pipeline ordered (approximately 45% of bulks priced and committed)

Batch Plant, Overland Conveyor, Truck Shop, Camps quoted and soon to be committed

Access roads, power line, concentrate pipeline construction contracts awarded

Mine fleet and equipment ordered

Significant effort underway to commit majority of equipment and bulks by Q4 2011

Procurement highlights

Ball Mill Shells delivered to storage

Crusher unloaded at site

Earth works underway at Nueva Fuerabamba urbanization (450 homes, schools, medical clinic, police station, recreation facilities)

Off-Site access roads (350 km new and rebuilt heavy haul roads)

Early Works, includes: construction camps, laydown yards, batch plant, roads, power, water and communication

Safety Observation Program

Site manpower at 1,200 people

Construction highlights

Off Site Access Roads Development

HSE Observation Program

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NFB Las Bambas Safe Behaviours Risk Behaviours

20% 80% Las Bambas NFB Observations Executed Aug11

Price escalation – Steel (structural, plate and re-bar) – Copper (wire, cable, motors,

transformers) – Petroleum and most related products

such as rubber lining and belting – Labour (engineering and construction)

Resources in Peru – Construction equipment – Skilled labour – Supervision and management

Community interaction with project – Environmental management – Cultural sensitivity – Mining conflicts in other parts of Peru

(eg. Puno)

Typical risks

Concentrate pipe unloaded at port

Local residents support the project

RSI Program (Replication, Synergies, Integration) to help mitigate escalation and save money

– Standard Concentrator, second application

– Master Agreements – rapid procurement

– Extended Project Agreements from Antapaccay

– Accelerated procurement overall

Alliance Agreements provides access to Resources

– World wide access – Skilled team – Construction equipment – Personnel assignments

Proactive mitigation of potential risks

RSI Program

Synergy Processes &

Knowledge

Integration People & Resources

Replication Designs &

Documents

Xstrata Project Guidance

Bechtel Project Management

Graña y Montero Construction

FL Smidth Mechanical Equip

Siemens Electrical Equipment

Suppliers Master Agreements

Consultants Specialist Engineering

Social Programs and Community Interaction

– Employment (37% Locals) – Training – Supplier development (40 local

contractors) – Health, Safety, and Environmental

initiatives

Management Programs and Initiatives – Change Management – Risk Management – Lessons learned from Antapaccay

Project – Heavy mining equipment early

purchase and savings – Build, Own, Operate initiatives – Definitive Estimate H1 2012

Proactive mitigation of potential risks

Assessment of Risks

Ytd total recordable injury frequency rate

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feb-

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may

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LTIF

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LTI

Incidents Target Cum TRIFR

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61% 25%

14%

1-3 4-5 6-7 Risk level

Advancing on schedule

Activity 1H10 2H10 1H11 2H11 1H12 2H12 1H13 2H13 1H14 2H14 Engineering

Interim engineering Detailed engineering

Procurement Mills and crusher Other equipment

Construction Off–site infrastructure Site establishment Earthworks Plant, equipment and other

Production Pre-stripping Commissioning and ramp-up Full production

Engineering, Procurement, Project Services – Santiago, Chile; Lima, Peru; and New Delhi, India (600+ people)

ESIA approved March 2011 after 9 months Early works commenced in March 11 following ESIA approval Copper production to commence in H2 2014

Construction underway

Mine Area Camp

Nueva Fuerabamba Camp for 2,000 construction workers

Pumamarca Area Camp

Conclusions

Las Bambas is a low-cost, tier-one asset with a long-life and potential for expansion/extension

Production of 400ktpa for first 5 years and 315ktpa average over LOM, plus gold, silver and molybdenum credits

On schedule and budget 29% of budget committed ahead of

construction phase with majority of equipment and bulks to be committed by year-end

Benefits from important synergies with Antapaccay Project

Major equipment, steel, pipeline pipe, and EPC services are committed

– Seeing price escalation in steel, copper, fuel, rubber and labour

Mitigation measures include design reviews, change management control and early procurement initiative

Fiscal stability agreement in place

Grinding area 3D model extract

Las Bambas community support

Questions?

16

Agenda Introduction Copper market update Xstrata Copper overview South American Operations Project Development South America Antamina and Collahuasi expansions

Antapaccay Project Las Bambas Project El Pachón Project Agua Rica Project Conclusions

Coffee break