Company Announcement to the Danish Financial Supervisory Authority
No. 11-2008, 13 March 2008
Xstrata Copper has selected FLSmidth Minerals as a long term
strategic partner with the objective of facilitating the development
of Xstrata's pipeline of copper projects.
Under the agreement FLSmidth has received a letter of award from the
project's alliance partners, Xstrata Copper and Bechtel, for the
provision of crushing and milling equipment and engineering services
to be used to expedite the possible development and implementation of
six world class copper facilities. Antapaccay and Las Bambas in Peru
are among the projects that may be executed under this alliance and
additional projects will be added as appropriate.
Besides the initial supply worth more than USD 43 million (approx.
DKK 200m) in grinding and crushing equipment by FLSmidth Minerals,
this key strategic alliance also involves the innovative concept of
designing a replicable copper concentrator and other facilities that
could be applied to Xstrata Copper's individual projects. This will
enable the early ordering of long lead time items and reduce the
engineering time and costs on individual projects. The benefits
associated with this engineering and supply strategy have the
possibility for application within other key areas of the process
flow sheet and will be explored by alliance partners as the project
advances.
Headquartered in Brisbane, Xstrata Copper is one of the commodity
business units within the major global diversified mining group
Xstrata plc. Xstrata Copper is the fourth largest global copper
producer with annual attributable production capacity of over one
million tonnes.
Based in San Francisco, Bechtel is one of the world's premier
engineering, construction, and project management companies."The opportunity to work with a high performance team such as Xstrata
Copper and Bechtel for an engineering and design approach to
concentrator plant design which has the potential to change the
industry is truly an honour and an expression of confidence in the
FLSmidth team and the One Source - One Partner business strategy",
Group CEO Jørgen Huno Rasmussen comments.
The long-term framework agreement is expected to contribute
positively to FLSmidth's earnings over the next five to ten years.
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Please address any questions regarding this announcement to Group
Chief Executive Officer Jørgen Huno Rasmussen, FLSmidth & Co. A/S at
+45 36 18 18 00.
For further information about FLSmidth, please visit
www.flsmidth.com.
Yours faithfully
Pernille Friis Andersen
Corporate Communications & Investor Relations
