Swiss miner Xstrata secures $4-bn credit to develop new mines

Swiss diversified mining group Xstrata has secured a $4-billion revolving credit facility that will fund its expansion of new mines.

The credit facility is equally split into a three and five year tranches and will be used to partly replace Xstrata's existing $5 billion facility, due to mature in October 2011, said the miner in a statement.

London and Swiss stock exchanges listed Xstrata had launched the new credit facility at $3 billion, but the miner increased it to $4 billion after it was significantly oversubscribed.

RBS acted as sole co-ordinator and Facility Agent.

In August 2010, Xstrata had approved spending $4.2 billion to develop its major, low-cost, long-life Las Bambas copper project in southern Peru's Apurimac Region and another $1.1 billion to develop the Ulan West underground thermal coal mine in the central west of New South Wales, Australia.