The Crest of the Commonwealth of Australia Treasury Portfolio Ministers
Picture of Peter Costello

Peter Costello

Treasurer

11 March 1996 - 3 December 2007

Media Release of 11/02/2005

NO.006

FIRB: XSTRATA/WMC

Exercising powers under the Foreign Acquisitions and Takeovers Act 1975, I have decided that the Australian Government has no objection to Xstrata plc’s (Xstrata) proposed acquisition of all the issued shares of WMC Resources Limited (WMC) provided that corporation complies with the conditions set out in Attachment A.

I also welcome the assurances contained in the attached letter from Xstrata’s Chief Executive, regarding Xstrata’s commitment to the high standards of corporate governance and disclosure associated with the London Stock Exchange, its plans to appoint an Australian resident to the Board of Xstrata and its long term commitment to Australia.

MELBOURNE

11 February 2005

Contact: David Alexander
03 9650 0244


ATTACHMENT A

Xstrata’s undertakings, observance of which is a condition under Section 25 (1A) of the Foreign Acquisitions and Takeovers Act 1975 (the Act):

  1. Xstrata will abide by all Australian federal and state laws and regulations relating to the mining and export of uranium;
  2. The headquarters and executive boards of Xstrata Coal, Xstrata Copper and the planned new business group, Xstrata Nickel, will be retained in Australia whilst the majority of the assets of the respective businesses are located in Australia;
  3. Xstrata will continue with the exploration programs currently undertaken by WMC within WMC's nickel and Olympic Dam businesses in Australia, in addition to Xstrata’s existing green- and brown-fields exploration activities in Australia which involve currently budgeted expenditure of $31 million per annum on average for the next three years;
  4. Xstrata’s annual reporting disclosure will include the Group’s annual exploration expenditure in Australia, and Xstrata will report on these activities annually to the Minister for Industry, Tourism and Resources;
  5. Xstrata will undertake prior consultations with the Department of Industry, Tourism and Resources on the terms of any and all marketing arrangements it enters into with third parties in respect of uranium, which will be subject to all regulatory requirements imposed as part of the Australian Government's regulations and disclosure rules relating to uranium sales out of Australia.

This condition will have effect indefinitely, subject to amendment of the Act or any revocation or amendment by the Treasurer.