MONTREAL-EAST, QUEBEC -- (MARKET WIRE) -- 06/27/07 -- Management of Xstrata Copper Canada's CCR Refinery in Montreal-East has obtained an interim injunction and a property protection order to protect the company's employees and assets and to ensure the integrity of operations for the duration of the strike.

The interim injunction issued by the Superior Court serves to protect the employees and enables unhindered access to company property.

The interim property protection order, issued by the Commission des relations du travail, is a measure that enables management to call up stationary engineers from among its unionized employees, in addition to the supervisory staff already on duty, to maintain operations of the thermal power plant. It is imperative that the thermal power plant remain in operation at all times, regardless of the refinery's level of production. The Commission has thus recognized that certain crucial steps of the industrial process are essential services given their significant impact on company activities.

"We had to take some concrete steps to maintain the integrity of our assets during the strike. The injunction will enable us to better coordinate the shipping and receiving of goods and the movement of people. The property protection order permits us to provide support to on-site supervisory employees who are making a significant effort to maintain the integrity of the refinery's assets," explained Bruce Dumville, General Manager of the CCR refinery.

"We are cognisant of the impact of the strike on our clients. During the last two weeks, we have achieved production rates of up to 35% of the plant's capacity. It is our intention to maintain this level of production," added Mr. Dumville.

The employees of the CCR refinery have been on strike since June 11, when they rejected the tentative agreement reached between management and the Union Executive on May 30.

"The metallurgical industry is a cyclical industry that is now in a very delicate situation, and this situation will not change in the short term. In 2007 we saw our earnings drop by more than 50%, the exchange rate for the Canadian dollar is causing some serious concerns, and we are now feeling even more the effects of the strong Asian competition. The collective agreement that we will sign with our employees must take these factors into account to ensure the medium-term viability of the refinery," concluded Mr. Dumville.

Notes

Xstrata plc

Xstrata is a major global diversified mining group, listed on the London and Swiss stock exchanges. Headquartered in Zug, Switzerland, Xstrata maintains a meaningful position in seven major international commodity markets: copper, coking coal, thermal coal, ferrochrome, nickel, vanadium and zinc. The company also has recycling facilities, additional exposures to gold, lead, silver and cobalt and a suite of global technologies, many of which are industry leaders. The Group's operations and projects span 18 countries: Argentina, Australia, Brazil, Canada, Chile, Colombia, the Dominican Republic, Germany, New Caledonia, Norway, Papua New Guinea, Peru, Philippines, South Africa, Spain, Tanzania, the USA and the UK.

Xstrata Copper

Xstrata Copper, one of the commodity business units within the major global diversified mining group Xstrata plc, is headquartered in Brisbane, Australia, with regional offices in Santiago, Chile; Lima and Arequipa, Peru; Buenos Aires, Argentina; and Toronto, Canada, and is one of the commodity business units within the major global diversified mining group Xstrata plc.

Xstrata Copper's mining operations span five countries and comprise mines, mineral processing plants and port facilities in North Queensland, Australia; mining and processing operations and port facilities in Chile, Peru and Argentina in South America; and mining and processing plants in Canada. It also has a recycling business (Noranda Recycling) with plants in Canada, the United States and Asia.

Xstrata Copper is the fourth largest global copper producer, with annual managed production of over one million tonnes.

Contacts:
Xstrata Copper Canada
Louis-Philippe Gariepy
Manager, Corporate Affairs
(514) 645-2311, ext. 2162