First quarter 2006 operations review

Thursday, 20 April 2006

Production of most principal commodities was above the comparative period of 2005.

Most mines and plants operated at or near capacity in order to take advantage of strong markets.

The Group’s share of iron ore production increased by four per cent compared with the first quarter of 2005 as the expansion programme continued. This increase was achieved notwithstanding the impact of heavy rains following a succession of cyclones in the Pilbara region of Western Australia.

Strong operational performance at the Kennecott Utah Copper smelter led to significantly increased levels of refined production. The optimisation of mine production in favour of molybdenum continued.

Production from the Comalco Alumina Refinery increased in the first quarter and was the strongest quarter to date, with March production the best month since production commenced.

Higher production levels of titanium dioxide feedstocks reflected the strength of current customer demand.

Australian hard coking coal production was in line with a short term decline in demand, as customers drew down on inventories, pending settlement on prices for 2006.

All currency figures in this report are US dollars unless otherwise stated.

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