Sydney Mining Club 7 November 2002 Presentation by Peter Coates CEO Xstrata Coal

2 The Agenda The transformation of Xstrata Plc Xstrata Coal’s origins Xstrata Coal today The outlook for the thermal coal market

3 Xstrata Plc International, diversified natural resources company Diversified portfolio of high-quality, cash generative metals and mining businesses Xstrata Coal Xstrata Zinc Xstrata Alloys Based in Switzerland and listed on the London Stock Exchange New international shareholder base Admitted to the FTSE 100 Index in June 2002

4 Transformation of Xstrata To create a platform from which value could be created, growth credibility pursued and existing potential unlocked The key challenges were: US$ 1 billion capitalisation, – lack of critical mass 2 quality assets (ferroalloys and zinc) not diversified by earnings profile or pricing cycle Growth constrained by: high gearing (85% debt to equity ratio); an illiquid stock and a domestic shareholder base

5 Xstrata’s origins

6 Coal Acquisition Coal assets: Ideal vehicle for transportation Complemented quality of the portfolio New commodity, pricing, earnings and geographical exposure Scale to unlock new listing and international shareholder base Transaction had to stand on financial merits: Conservative assumptions: Acquisition makes returns in excess of cost of capital at long-run coal price of US$26/ton and US:Australian dollar exchange rate of 63c

7 Roadshow Summary In total, Xstrata’s IPO roadshow covered some 190 institutions worldwide, with an 89% success rate 11 day programme Meetings with investors in 13 cities in 7 countries 66 one-on-ones 15 groups meetings 5 video or tele-conferences

8 The new Xstrata Successful IPO placed Xstrata in strong position Company effectively transformed New XstrataFormer Xstrata AG Proforma net cash from operations US$340mUS$33m Net debt to equity ratio19.6%84.7% Debt to EBITDA<1.5x3.6x

9 Top Shareholders: Public Data No of shares% Glencore International AG101,040, Capital Group of Companies35,409, Fidelity7,639, Undisclosed UK % of total register Undisclosed CH - 9.8% of total register (Total shares in issue: million)

10 Xstrata Plc Revenue by Commodity Proforma Revenue – US$1,875 million

11 Xstrata Plc Revenue by Commodity Six months to 30 June 2002 – US$957.9 million

12 Xstrata has global leading positions in its selected markets Thermal coal exports (2001) mt

13 Xstrata has global leading positions in its selected markets Refined zinc production (2001) kt

14 Xstrata has global leading positions in its selected markets South African ferrochrome (2001) kt

15 Xstrata Coal One of world’s largest exporters of thermal coal Australia 14 mines – approximately 32 Mt managed production/ 27.5 mt consolidated production 20% of Australian thermal exports South Africa 12 mines – approximately 14 Mt managed production/ 16mt consolidated production 20% of South African exports

16 Xstrata Coal’s origins

17 Cerrejon, Columbia

18 The Genesis of Glencore Coal 1995 – Glencore purchase of Prodeco assets Carbones del Cerrejon Calenturitas Lenquazacue Puerto Zuniga Development of Mine and Port Carbones del Cerrejon to 4mtpa Puerto Zuniga to 6 mtpa 1998 – Sell down and consolidation Sale of 50% of CdelC to Anglo Merger of CdelC with Rio’s Oregenal Later – Further consolidation Exit of Rio Buy in of BHP Purchase of Carbocol share of CZN Purchase of Exxon share of CZN

19 On the Acquisition Trail 1998Cumnock Coal Ltd (Underwritten Rights Issue) Mt Owen OC (BHP) 1999Teralba UG, West Wallsend UG, Westside OC (HIH) Liddell OC (Savage Resources) United UG (White Industries) 2000Bulga OC, Sth Bulga UG and Baal Bone UG (Cyprus) 2001Ulan UG and OC Mines (Exxon) Duiker Mining Ltd (On-market takeover) 2002Ravensworth East OC, Narama OC (Rio)

20 Xstrata Coal Australia

21 Xstrata Coal South Africa

22 Leading NSW coal producer

23 Strong outlook for thermal coal demand

24 Australia’s thermal coal supply - Major potential for expansion

25 In Summary Xstrata Plc is a leading international, diversified natural resources company Xstrata Coal is one of the world’s largest exporters of thermal coal Well-positioned to capture future growth in coal market