Rustenburg, 16 January 2009

On 1 December 2008, the Xstrata-Merafe Chrome Venture (the “Venture”) announced the temporary suspension of a total of 11 ferrochrome furnaces, representing 906,000 tonnes of annual ferrochrome operating capacity.

Subsequent to this, a further 6 furnaces have been suspended due to the market conditions. The total suspended ferrochrome production capacity represents 1.37 million tonnes or 80% of annual operating capacity.
 
The Venture will continue to monitor prevailing market conditions closely.  No lay-offs are anticipated for permanent employees at the furnaces, enabling the Venture to return to capacity quickly and efficiently when market conditions allow.

Ends

Xstrata Contacts
                                                                   
Songezo Zibi                                                                   
Telephone                +27 11 250 0064                                                                
Mobile                      +27 82 303 8176                                                                
Email                         szibi@xstrata.co.za                                                               

Notes to editors
Xstrata Alloys
Xstrata Alloys is a business unit of Xstrata PLC, listed on the London and Swiss stock exchanges. Headquartered in Rustenburg, Xstrata Alloys is one of the largest South African producers of ferrochrome and vanadium.