Xstrata Coal is advancing an extensive project pipeline comprising 20 major brown- and greenfield projects in Australia, South Africa and Colombia. Projects already in implementation will add 31 million tonnes of annual production.

All volumes and capital are shown on a managed basis.

Australian thermal coal

Newlands Northern underground
Newlands Northern underground expansion will commission in the second half of 2011, producing 3 million tonnes of coking coal at full production.

Ravensworth North
The Ravensworth North project is located outside Singleton in the Hunter Valley, New South Wales. The project will be a large open cut mine of up to 8 million tonnes per annum of saleable semi-soft and thermal coal.

Ulan West
The $1.3 billion Ulan West project situated in New South Wales will add a second underground longwall mining operation to the existing Ulan No. 3 longwall mine. Regulatory approval was received in December 2010 and longwall mining will begin in 2014, producing 6.7 million tonnes of export thermal coal per annum.

Wandoan
The Wandoan coal project in Queensland is currently advancing through feasibility stage. More than 1 billion tonnes of reserves have now been proven to underpin thermal coal exports from the initial stage of up to 22 million tonnes per annum. State regulatory approval was granted in November 2010, initiating the final stage of the mining lease application.

Americas

Cerrejón
A $1.3 billion project to expand the Cerrejón thermal coal mine in Colombia has been approved by Cerrejón’s three equal shareholders Xstrata Coal, BHP Billiton and Anglo American. The project will increase saleable production and export capacity by 8 million tonnes per annum from 32 million tonnes to 40 million tonnes per annum.

Iron Ore

Sphere
At the end of the first half of 2011, Xstrata had acquired 86.8% of Sphere Minerals Limited (Sphere), which has interests in three iron ore projects in Mauritania, West Africa.

Zanaga
On 8 February 2011, Xstrata announced it had elected to exercise the option to acquire 50% plus one share in Jumelles Limited (BVI) in respect to the Zanaga iron ore project in the Republic of Congo. Under the agreement, Xstrata will fund a minimum of $100 million towards a feasibility study. Xstrata Iron Ore, which is currently managed through Xstrata Coal, will prioritise a value engineering exercise on the project, building on the pre-feasibility study undertaken by Jumelles.