Xstrata Nickel's Raglan Mine Welcomes the Quebec Government's Mineral Strategy

ROUYN-NORANDA, QUEBEC, Jul 07 (MARKET WIRE) --
Xstrata Nickel's Raglan Mine welcomes the initiative taken by the
Minister for Natural Resources and Wildlife, Serge Simard, in unveiling
Quebec's first mineral strategy last week.

This strategy introduces the main policy directions that will profoundly
modify the mining regime in Quebec and bring it into line with
international standards for sustainable development.

"Quebec already ranks among the best jurisdictions in the world for the
mining sector. This strategy has the potential to strengthen Quebec's
already enviable position and could help ensure the sustainability of
mining for future generations," noted Michel Boucher, General Manager of
Xstrata Nickel's Raglan mine located in Nunavik. "We are confident that
the Government of Quebec will be able to implement measures quickly to
achieve these objectives once it has consulted communities, the public,
mining companies and other stakeholders engaged in the development of
Quebec's mining sector."

Xstrata Nickel's Raglan mine has already put in place solid sustainable
development practices and progressive rehabilitation is being implemented
for its operations. The company has also given priority to a
profit-sharing agreement with the neighbouring communities and to the
hiring of Nunavik employees and Inuit businesses.

Xstrata Nickel's Raglan Mine

The Raglan mining camp is producing 1.3 million tonnes of ore annually.
Through the course of the current year, the concentrator will reach the
600 million pound mark of nickel produced since the operation began in
1997. In 2009, Raglan Mine is spending Cdn$95 million to upgrade its
civil infrastructures and power plant. Since 2007, more than Cdn$300
million has been invested in infrastructure modernization. Xstrata Nickel
Raglan Mine has an enviable reputation throughout the mining industry as
a sustainable development leader and participates in several research
programs and activities in Quebec's Nunavik territory.

The Raglan facilities include three underground nickel mines and one
open-pit nickel mine, along with a concentrator, an accommodation
complex, port facilities at Deception Bay and an aircraft landing strip
at Donaldson. Extracted ore is crushed and treated to produce a
nickel-copper concentrate. The treatment facility has a capacity of 3,900
tonnes per day. The operation produces 30,000 tonnes of nickel annually.

Xstrata Nickel

Xstrata Nickel, headquartered in Toronto, Canada, is one of Xstrata
Group's global commodity businesses. Xstrata Nickel's operations include
mines and processing facilities in Canada, the Dominican Republic and
Australia, and a refinery in Norway. Xstrata Nickel has a promising
portfolio of growth projects in Canada, New Caledonia, Tanzania and
Brazil. Xstrata Nickel is the world's fifth largest nickel producer, with
annual managed production of more than 107,000 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 a growing platinum group
metals business, additional exposures to 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 19
countries.

Contacts:
Xstrata Nickel
Francis Beauvais
819-762-7800 ext. 4869
fbeauvais@xstratanickel.ca
www.xstrata.com

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