Businessweek

Xstrata plc operates as a global diversified mining group in Switzerland and internationally. The company focuses on copper, coking coal, thermal coal, ferrochrome, nickel, vanadium, zinc, gold, cobalt, lead, and silver metals. Operations Alloys Xstrata Alloys produces ferrochrome and vanadium. It also has a platinum group metals business. Xstrata Alloys also owns carbon and anthracite operations, which supply key raw materials to its ferrochrome smelters. Xstrata Alloys’ operations are located in South Africa. The principal end-use of vanadium is as an alloying agent in steel. Xstrata produces vanadium pentoxide and ferrovanadium, which are sold to an international customer base. Platinum Group Metals (PGMs) comprise platinum, palladium, rhodium, iridium, ruthenium, and osmium. PGMs are used in auto catalysts and fuel cells, providing cleaner energy. Other key markets include jewellery, and industrial and consumer products. Coal Xstrata Coal is an exporter of thermal coal. It also produces hard coking coal and semi-soft coal. Xstrata Coal has interests in approximately 30 operating coal mines in Australia, South Africa, and Colombia; and an exploration project in Nova Scotia, Canada. Xstrata’s Australian thermal coal operations supply major power generation companies in the Asia-Pacific region, while its Australian metallurgical coal mines supply major steelmakers worldwide. Xstrata’s South African coal operations supply the Atlantic thermal coal market, where Europe is the major export destination. In Colombia, Xstrata has acquired Prodeco and also owns a one-third stake in the Cerrejón mine, both of which export high grade thermal coal to Europe and the Americas. Copper Xstrata Copper is an integrated producer of copper metal and concentrate, and mined copper. Xstrata’s excess copper concentrate production is sold to custom copper smelters in South America, Asia, and Europe. Xstrata Copper’s refined copper metal cathodes are sold to producers of industrial products and traders in major copper consuming regions. Cathodes are predominantly used in the manufacture of copper wire rod for electrical conductor applications. The company has mining and processing facilities located in Australia, Chile, Peru, Argentina, and Canada. It also manages a recycling business with plants in the U.S.A. Xstrata Copper has a portfolio of six copper development projects, located in Peru, the Philippines, Chile, Argentina, and Papua New Guinea. Nickel Xstrata Nickel produces nickel and cobalt. 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, Tanzania and New Caledonia. Xstrata Nickel’s Nikkelverk refinery in Norway produces high grade purity nickel and cobalt from material sourced from Xstrata Nickel’s mining operations in Canada and Australia. The high grade nickel produced at Nikkelverk is typically sold into first end-use applications, such as high nickel alloys, superalloys, low alloy steel, foundry, and electroforming. Cobalt from Nikkelverk is typically sold into such end-use applications, such as aerospace, land-based turbines, and electronics. Zinc Xstrata Zinc mines and produces zinc and lead concentrate, zinc and lead metal, and silver. Xstrata Zinc’s operations span Spain, Germany, Australia, the U.K., and Canada, with an interest in the Antamina copper-zinc mine in Peru. Xstrata Zinc’s growth projects include interests in Australia. The zinc metal produced globally is used to galvanise steel. Zinc is also used in the manufacture of die-cast alloys, brass and the production of zinc oxides and chemicals. The majority of Xstrata’s zinc metal production is sold under term contracts to the EU, Canada, and the U.S. Zinc concentrates are sold mainly to Japan, South Korea, China, Australia, and Europe. Technology Services Xstrata Technology Services supports the processes involved in mining. It comprises Xstrata Technology, based in Brisbane, a specialist technology solutions provider and Xstrata Process Support, based in Sudbury, an independent group which provides specialized technological support both to the company’s operations and to third-party customers. Competition The company's competitors include Anglo American Alcoa Inc; BHP Billiton; Arch Coal Inc; Rio Tinto Companhia Vale do Rio Doce (Vale); Copper & Gold Inc; Eramet SA; Freeport McMoRan; Grupo Mexico SA de CV; Impala Platinum Holdings Ltd; Korea Zinc Inc; MMC Norilsk Nickel; Nordeutsche Affinerie AG; Peabody Energy Corp; Teck Cominco Ltd; and Vedanta Resources plc.