Xstrata Nickel's Raglan Mine Honoured for Safety Performance

Tue Jun 10, 2008 2:35pm EDT

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  MONTEBELLO, QUEBEC, Jun 10 (MARKET WIRE) -- 
 Editors Note: A photo for this release is available via Marketwire's
website.

    Xstrata Nickel is pleased to announce that its Raglan operation in
Northern Quebec has been awarded the 2007 F.J. O'Connell trophy for
excellence in safety for the ninth time in the last ten years.

    The F.J. O'Connell award is presented each year by the Mining Association
of Quebec (AMQ) to the Quebec mine that has recorded the most
improvements in mine safety and accident prevention.

    "We are delighted to again accept this recognition of our commitment to
'Zero Harm' in our operations," said Michel Boucher, General Manager of
the Raglan Mine. "We are proud of our record of continuous safety
improvement and have all employees and contractors to thank for reducing
our total recordable injury frequency rate by more than 50% last year and
for putting safety first."

    Ian Pearce, Chief Executive Officer of Xstrata Nickel, added "Over the
past year, we have continued to make improvements to our health and
safety programs throughout our operations and engrained a safety-first
philosophy into everything we do. This significant achievement for Raglan
is proof that the well-being of our employees is our top priority. We are
committed to seeing our ambitious growth plans and prospects at Raglan go
hand-in-hand with an emphasis on 'Zero Harm.'"

    Xstrata Nickel's Raglan mining camp was constructed at a cost of Cdn$600
million and began production in 1997. In 2007, capital investments
included Cdn$48 million to refurbish existing wharf facilities and Cdn$50
million to expand accommodation facilities. Exploration results have
confirmed Zone 5-8 as the largest mineralized zone in Raglan's history,
adding an estimated 4.5 million tonnes grading 2.80% nickel of inferred
resources in 2007.

    Raglan consists of three underground and one open pit nickel mines and a
concentrator. Approximately 680 employees and 250 contractors work at
Raglan. Work is currently underway to increase production to 1.3 million
tonnes per annum by the end of 2008 and the company is reviewing plans
for additional infrastructure, which is expected to allow a further
expansion to reach 1.5 million tonnes by 2011. Exploration results
continue to indicate that production can be doubled from current
production in future.

    Xstrata Nickel

    Xstrata Nickel, headquartered in Toronto, Canada, is one of Xstrata
Group's global commodity businesses, comprising five mines and processing
facilities in Ontario and Quebec, Canada; a ferronickel mine and
processing facility in Bonao, Dominican Republic, a high-grade sulphide
mine and processing facility in Western Australia; and a refinery in
Kristiansand, Norway. Xstrata Nickel has a significant portfolio of
growth projects, including Koniambo in New Caledonia, Nickel Rim South in
Canada, Kabanga in Tanzania, Araguaia in Brazil and Sinclair in
Australia. Xstrata Nickel is the world's fourth largest nickel producer,
with annual managed production of more than 116,000 tonnes of refined
nickel.

    Xstrata plc

    Xstrata is a global diversified mining group, listed on the London and
Swiss Stock Exchanges, with its headquarters in Zug, Switzerland.
Xstrata's businesses maintain a meaningful position in seven major
international commodity markets: copper, coking coal, thermal coal,
ferrochrome, nickel, vanadium and zinc, with additional exposures to
platinum group metals, gold, cobalt, lead and silver, recycling
facilities and a suite of global technology products, many of which are
industry leaders. The Group's operations and projects span 18 countries:
Argentina, Australia, Brazil, Canada, Chile, Colombia, the Dominican
Republic, Germany, New Caledonia, Norway, Papua New Guinea, Peru, the
Philippines, South Africa, Spain, Tanzania, the USA and the UK. Xstrata
employs approximately 56,000 people, including contractors.

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Contacts:
Xstrata Nickel
Peter Fuchs
Director, Corporate Affairs
(416) 775-1523
Email: pfuchs@xstratanickel.ca

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