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FLSmidth Company Announcements

FLSmidth Minerals enters into Xstrata Copper strategic partnership

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.
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.
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Yours faithfully

Pernille Friis Andersen
Corporate Communications & Investor Relations