Canadian Union Calls for Government to Make Xstrata Divest Assets in Timmins, if Closure Ensues

TORONTO, February 8 - The Canadian Auto Workers union (CAW) is calling on the Canadian federal
and provincial governments to thoroughly investigate international mining
giant Xstrata, including the reason for closing its Timmins Kidd
metallurgical site. This call comes hours before Xstrata releases its annual
report with its profit for 2010.

Should this investigation conclude that Xstrata has little reason to
close the Timmins site, both levels of government must force Xstrata to
divest their Timmins assets, says the CAW.

"Xstrata must not be allowed to extract local resources without creating
local jobs," said CAW President Ken Lewenza.

The closure is slated for May 1, a move the CAW is calling wholly
unnecessary. Currently Xstrata plans to shift production from Kidd to
smelters and refineries in Quebec, cutting approximately 670 jobs.

According to the Investment Canada Act, the federal industry minister
retains the power to review the implementation of an investment (by a foreign
company) and determine whether it varies from the original application and
still results in a "net benefit" to Canada. If this is not the case, federal
Industry Minister Tony Clement can force a company to remedy the situation or
even sell some of its assets.

In Ontario, the Mining Act requires that ore and minerals be treated and
refined in Canada. Failing to do so allows the minister of natural resources
to withdraw the company's mining rights.

"We're calling on the federal and provincial government to enforce a
moratorium on the closure, until this matter can be properly investigated,"
said Lewenza.

According to a CAW report released today, Xstrata's revenue remained
steady despite a sharp downturn in resource prices in 2008 and 2009. Now
prices are on the rise, with analysts expecting them to reach the highs of
the recent boom of 2006-2008.

Some other key findings from the report "Our Resources Stay Here: Seven
Reasons Why the Xstrata Metallurgical Site Must Stay":

    - In the last number of months, metal demand has improved sharply, acid
      demand is returning to historically high levels and the Canadian dollar
      is trading at the same range as during Xstrata's bid for Falconbridge
      in 2006.
    - As the global economy continues to recover and metal prices climb
      further, analysts forecast that revenue will climb by 27%.
    - The Kidd operations remain highly profitable and the metallurgical site
      is among the most environmentally sound in the industry.

The CAW is the largest private sector union in Canada.

For further information: CAW Communications Director Shannon Devine,
(cell) +1-416-302-1699. The report Our Resources Stay Here: Seven Reasons
Why the Xstrata Metallurgical Site Must Stay is available at:
www.caw.ca/en/8442.htm/

For further information: CAW Communications Director Shannon Devine, (cell) +1-416-302-1699.