Xstrata to invest $26 billion in growth projects until 2016

Tuesday, 07 December 2010 14:37:54 (GMT+3)   |  
       

Swiss mining giant Xstrata is hosting an investor seminar in London on December 7 to update investors on the ongoing delivery of its strategy, including its industry-leading organic growth pipeline, implementation of productivity and efficiency improvements across the portfolio and through value-creating mergers and acquisitions.

In a statement before the meeting, summarizing the company's outlook, Xstrata said that an update on delivery against the 50 percent volume growth and 20 percent unit cost reduction targets by 2014 is to be posted at the investor seminar.

"Xstrata is on track to deliver these targets, with a further 30 percent growth to 2016 and expansionary capital expenditure of $23 billion budgeted to 2016, comprising 59 major projects that have been approved, are currently in implementation or to be approved," the company said.

The expansionary capital expenditure of Xstrata is expected to be $6.8 billion for 2011, with investment primarily in coal, copper and nickel projects.

Xstrata CEO Mick Davis said, "Together with opportunistic M&A where we can extract value, our focus on organic growth means that Xstrata's path to value is clear and is in the hands of our management teams."


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