Pr oject Communities Xstrata Nickel New Caledonia Kone Koniambo Pr oject Noumea V ANUA TU Pacifc Ocean Ouvea Lifou Mare Isle of Pines NEW CALEDONIA K o n ia mb o Pr o je c t New Caledonia – North Pr ovince V avouto industrial site at Koniambo Nickel. Xstrata Nickel is a joint-ventur e partner in the development of the massive Koniambo or ebody in New Caledonia with Societe Minier e du Sud Pacifque, the development ar m of the North Pr ovince. T ogether , we ar e building a world-class industrial complex that will include a pyr ometallur gical nickel smelter , a power station, and other complementary infrastructur es, including a private deep-water port, an 11-kilometer overland conveyor , and a seawater desalination plant. As the industrial partner , we ar e pr oviding frst-rate technical, industrial and lar ge-pr oject management expertise, including the involvement of some of our best people in every step of the pr oject. Our pr oven and pr oprietary nickel smelting technology is enabling our metallur gical plant to be built accor ding to strict Eur opean ener gy and emissions standar ds, pr oviding a competitive advantage. W e ar e underwriting and guaranteeing the total pr oject funding, estimated at $5 billion, bringing fnancial certainty and r emoving the risk to the pr oject’ s completion. The potential of our Koniambo Nickel operation is undeniably signifcant: the r egion is host to the world’ s lar gest and best quality deposits. W ith our sustainable development principles guiding the way , we estimate this mine will have a life of 25 years with an annual pr oduction of 60,000 tonnes of nickel in ferr onickel once the initial pr oduction ramp-up has been completed. When the estimated r eserves ar e included (appr oximately 83 million tonnes of inferr ed r esour ces at an average grade of 2.5%), the mine’ s life could be much longer – potentially up to 50 years.