Xstrata 2010 Annual Report Basic Materials United Kingdom Op o na l g m a ti sfor Tran rowth lence l excel iona erat a Sust value inable Annual Report 2010 Contents www.xstrata.com | 1 Overview 02 2010 highlights 04 Group overview 06 ChairmanÕ statement s 09 Chief ExecutiveÕ report s Strategy 18 Market overview 21 Competitive environment 24 How we create value 26 Strategy 28 Growth pipeline 36 Key performance indicators 42 Principal risks and uncertainties Performance 50 Financial review 56 Operating review 56 Xstrata Alloys 62 Xstrata Coal 70 Xstrata Copper 80 Xstrata Nickel 86 Xstrata Zinc 94 Xstrata Technology Services 96 Operations data Governance 102 Board of directors 104 Executive management 105 DirectorsÕ eport r 110 Corporate Governance report 119 Remuneration report Financial statements 132 Statement of directorsÕ esponsibilities r 133 Independent AuditorsÕ eport r 134 Consolidated income statement 135 Statement of comprehensive income 136 Consolidated statement of financial position 138 Consolidated cash flow statement 139 Statement of changes in equity 140 Notes to the financial statements 219 Independent AuditorsÕ eport r 220 Balance sheet 221 Notes to the financial statements 228 Cautionary note regarding forward-looking statements IBC Shareholder information Overview Strategy Performance Governance Financials Mission statement We will grow and manage a diversified portfolio of metals and mining businesses with the single aim of delivering industry leading returns for our shareholders. We can achieve this only through genuine partnerships with employees, customers, shareholders, local communities and other stakeholders, which are based on integrity, co-operation, transparency and mutual value-creation. cobalt, lead and silver. The Group also comprises a growing platinum group metals business, iron ore projects, recycling facilities and a suite of global technology products, many of which are industry leaders. XstrataÕ s operations and projects span 20 countries. Sustainable development For the second year, we have combined information about our non-financial and financial policies and performance to provide a comprehensive overview of the GroupÕ s business and activities. We recognise that excellence in safety, environmental, ethical and social performance is a source of competitive advantage and is critical if we are to achieve our primary aim of delivering industry-leading returns to our shareholders over the long term. Integrated reporting reflects our ongoing efforts to embed our sustainable development policy and principles into our decision-making and the way we operate at every level of the organisation. Key information about sustainable development within this report is available in the following areas: Page numbers Governance and framework Approach and policies Employees Health and safety Environment Community Key performance indicators 7-8, 24-25, 112, 115-118 7, 10-11, 24-25, 26-27 25, 27, 41, 47 10-11, 25, 27, 40, 45-46 25, 39-40, 44-46 25, 27, 41, 45 38-41 For more information Visit our corporate website: www.xstrata.com Cross-reference within this document for related information. How we operate We believe that operating to leading standards of health, safety and environmental management, contributing to the development of sustainable communities and engaging with our stakeholders in two-way dialogue, regardless of our location, enhances our corporate reputation and is a source of competitive advantage. We balance social, environmental, ethical and economic considerations in how we manage our businesses. Who we are Xstrata is a global diversified mining group, listed on the London and Swiss Stock Exchanges, with its headquarters in Zug, Switzerland. What we do Our businesses maintain a meaningful position in seven major international commodity markets: copper, coking coal, thermal coal, ferrochrome, nickel, vanadium and zinc, with additional exposure to gold, How we create value We create sustainable value for our shareholders by delivering transformational growth and by applying operational excellence to our portfolio. We also produce a detailed Sustainability Report which is published in April 2011. This provides additional discussion on our policies, activities and performance, and is available on our website: www.xstrata.com/sustainability pp IFC-1 The front cover has a clear statement of the Company mission and a brief overview of who they are, what they do and how they operate. The reader is informed that the sustainable development information has been integrated throughout the report and is directed to relevant areas of the report for specific information. www.blacksunplc.com © Black Sun Plc 2011 11
