Antapaccay Project

Max Combes – Project Director 18 September 2011

Agenda

Project overview and status

Safety indicators

Local employment

Local contracts & community investment

Project layout

Project costs

Project schedule

Initiatives to support project schedule

Project metrics

Synergies achieved

Description Location: Cusco Region (12km from

Tintaya) Elevation: 4,200 metres Ownership: 100% Mineral Resource: 817Mt @ 0.52% Cu Concentrator: 70ktpd, 1 grinding line Production: 160ktpa Cu for first five

years, average over LOM 143ktpa Cu Approved Capital Cost: US$1.47 billion LOM: 22 years First of the Standard Concentrator

applications under Xstrata - Bechtel Alliance.

Project Status (as of Sept 9) Detailed Engineering: 97% Construction: 31% Overall Project Progress: 37%

Antapaccay project overview and status

Copper in resource

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Measured Indicated Inferred

Mt Cu

Measures taken to minimize safety risks: • Specific induction developed for the Project between Bechtel and Xstrata

• Experienced Safety personnel • Risk Analysis; Safety Talks; Regular inspections; Contractor audits

• Extensive Safety Observation Program • Special attention to Task Analysis and Change Management

Statistics: • 7,700 people inducted to the project to date

• 140,000 training hours on safety related subjects

• The project has completed 8,728,000 work hours (7,000,000 since the lost time accident as of this report date)

Safety Indicators

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Lost Time Injury Performance (LTIFR)

Local Employment Program as a project success factor

Strong focus on local employment to maintain social license

Local workers are trained and hold necessary skills

28% of manual workers belong to the communities exceeding the EIA target of 20%

Over 1,200 local workers currently employed

Over 1,800 local workers have been employed during the life of the project 0

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Local Employment (Cumulative)

Local Contracts & Community Investment

The project has spent USD4.95M to date in the surrounding communities on Goods and Services

At least 10 local contractors provide services to the project

Main contracts include: – Site fencing services – Camp refurbishment – Water truck rental – Architectural jobs – Office refurbishment – Conveyor sleeper fabrication – Miscellaneous buildings

Project costs in line with budget

Crusher Building Construction

Overland Conveyor

Definitive Estimate completed in March 2011 confirming USD 1,473M total cost

Committed USD 945M to date

Majority of large capital expenditure items now factored into budget

– 145 out of 147 Purchase Orders placed

Xstrata initiatives have saved the project over USD 40M, offsetting cost inflation

– Earthworks done by Owner – Water system redesign – Purchase orders renegotiations – Reduction of Small Tools rates – Redesign of truck shop earthworks – Piping and electrical works done by

Owner – Travel cost reductions

Project on schedule for commissioning in H2 2012

Project Progress Planned Value Earned Value Engineering 99.9% 97.0% Procurement & Contracts 95.5% 90.0%

Construction 31.1% 31.0% Total (weighted) 37.3% 37.0%

Workforce Status – Currently 3,700 people on site (4,500

contracted) – Peak of 4,800 people on site to be

reached in December 2011 – Between 100 and 150 people are

being added each week though construction contractor Graña y Montero

– Owner’s Team fully staffed

Productivity in Line with Budget

Other Resources – Construction Equipment mostly on site – Key Technical assistance from

suppliers already committed

Initiatives to support project schedule

Ore Reclaim Tunnel Completed

Ore & Media Reclaim Area

Antapaccay project metrics

Truck Shop Building

Truck Shop Building

Estimated Job Manhours 18,636,000 Manhours to date 8,728,000

Personnel at Peak 4,800 Current Personnel 3,700

Major Bulk Quantities UoM Quantity Massive Earthworks m³ 3,000,000

Structural Earthworks m³ 924,000

Concrete m³ 118,000

Steel Mt 11,484

Piping m 165,763

Cable & Wire m 1,094,619

Instruments No 1,930

Mechanical Bulks Mt 2,109

Synergies achieved with Las Bambas

Conveyor Belt works

Conveyor Belt – Cañipía Crossing

Synergies with Las Bambas identified as of today that will have a positive effect on both projects:

Antapaccay Cost Savings US$M Shared Spare Parts 8.5

Small Tools Reutilization 3.5

Construction Equipment Transfer 2.5

Internal Buses Purchasing 2.2

Surplus Material Reutilization 2.0

Construction Camp (2,000 beds) 1.2

External Bus Transportation 1.0

Formwork and Scaffolding 1.0

Power Supply for LB Moly & Filter Plant 1.0

Lima Office shared personnel 0.4

Total 23.3

Works in Progress

Antapaccay Plant General View

Mills Erection & Steel Structure underway

Antapaccay Grinding Area

Civil & Electrical Works underway

220 kV Main Sub Station

Cells Installation underway

Flotation Area

Concrete Works underway

Tailings Thickeners Area

Conclusions

Large scale, long-life mine that benefits from synergies with Tintaya Average of 160ktpa for 5 years, then 143ktpa over the remaining mine life of

at least 22 years Overall project 37% complete, detailed engineering 97% complete Construction 31% complete

‒ Majority of earthworks complete ‒ Foundation works well underway

Fiscal stability certificate in place Remains on schedule for commissioning in H2 2012 Remains on budget – definitive estimate completed in March 2011

‒ Long lead items ordered and priced ‒ Most tenders are complete ‒ Benefits from Xstrata - Bechtel Alliance relationship

Questions?

18

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