:: Xstrata Approves Expansion of Copper Smelter Capacity at Mount Isa

Xstrata Copper has approved a project to expand the capacity of its Mount Isa copper smelter in north west Queensland, Australia, at an expected capital cost of AUD41 million (USD29.3 million). The project comprises the installation of a second rotary holding furnace, a copper slag cleaning furnace, a converter slag treatment plant and associated plant, all designed to increase the smelter’s capacity from 240,000 tpa to 280,000 tpa within the next 18 months. The project will also improve the copper smelter matte process recoveries between the copper ISASMELT furnace and the copper converters by 2%, reduce unit operating costs and improve the overall operating control of the copper smelter.

Detailed design work on the project will commence immediately, with commissioning expected in mid-2006. The project is the result of a feasibility study announced in June this year to improve recoveries and performances from the copper smelter. Copper smelter recoveries in Mount Isa are already expected to be improved by 1% from March 2005. This follows the approval of an AUD7.2 million (USD 4.95m) leaching project in June this year to recover around 2,500 tpa of additional copper from the electrostatic precipitator (ESP) dust in the Mount Isa copper smelter.

Commenting on the announcement, Charlie Sartain, Chief Executive Xstrata Copper, said "I am delighted that we have been able to approve a further capital investment in our copper business in north Queensland.

"This copper smelter project adds to the operational improvements that have already been achieved by the current smelter team at Mount Isa and brings to AUD115 million the amount of north Queensland capital improvements that we have committed to this year. These include the 3500 Northern underground development at the Enterprise copper mine, copper smelter improvement projects and the development of the Black Star zinc-lead open pit mine all in Mount Isa, and gas conversion at the Townsville copper refinery."

"This further demonstrates a determination by Xstrata to implement capital efficient projects which will improve the overall capital productivity of our fixed assets and bring further value enhancement and integration to our north Queensland businesses. The ongoing transformation of these operations is delivering significant and sustainable improvements that will secure their future," he said.

In association with the construction of the copper smelter projects, the disused fluo solids roaster plant (FSR) is in the process of being demolished. This project is being undertaken by Moltoni Adams Pty Ltd and involves the demolition of the FSR vessel, associated feed systems and gas handling plant, reverbatory furnace and demonstration ISASMELT plant, all of which were decommissioned in the early 1990s. The demolition is expected to be completed by September, 2005.