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Xstrata plc ("Xstrata") notes the announcement made by Anglo American plc ("Anglo American") today. Xstrata confirms that it recently sent a written proposal to the Board of Anglo American seeking their consideration of a merger of equals of the two companies.

"Anglo American has hired Andy Shaw"

In the light of the review the Board of Anglo American has unanimously concluded that the proposed combination with Xstrata would not be in the interest of Anglo American shareholders.

U.S. wind industry has raced past the 20,000-megawatt (MW) installed capacity milestone, achieving in two years what had previously taken more than two decades, according to new figures. The 10,000-MW mark was reached in 2006. Wind now provides 20,152 MW of electricity generating capacity in the U.S., producing enough electricity to serve 5.3 million American homes or power a fleet of more than 1 million plug-in hybrid vehicle, according to the American Wind Energy Association (AWEA). "Wind energy installations are well ahead of the curve for contributing 20% of the U.S. electric power supply by 2030 as envisioned by the U.S. Department of Energy," said AWEA Executive Director Randall Swisher. "However, the looming expiration of the federal renewable energy production tax credit (PTC) less than four months from now threatens this spectacular progress. The PTC has been a critical factor in wind's very rapid growth as a part of the nation's power portfolio." The PTC is currently set to expire at the end of 2008.

US speciality brass mill Ansonia Copper and Brass Inc. has announced that it will lay off 85 of the 102 employees at its Liberty Street, Ansonia, factory in Connecticut. The plant manufactures copper alloy rod and wires. Company President Raymond McGee said "it's a very, very difficult situation". He blamed the redundancies, on top of 76 employees laid off in April 2007, on the company's struggle with escalating costs. Since 2002 electricity costs have soared 239%, natural gas 200%, fuel oil 125%, and copper and nickel 500% apiece. Ansonia's other facility in Waterbury, CT, which manufacturers copper alloy tube is unaffected by the announcement.

Further evidence of the impact of the North American economic slowdown on copper demand has recently been published by the ABMS and government statistical bodies. North American copper wirerod production plummeted 9.6% year-on-year to 174,000 tonnes in April. Output had been on a downward trend but the magnitude of the deterioration in April has still come as something of a surprise. A year-on-year increase of 2.0% in North American output January had been followed a 1.0% fall in February and a 2.7% drop in March. In April Canadian output was flat year-on-year due to improving export sales to the US, while US production fell 9.8% year-on-year and Mexican shipments slumped by 17.5%. On a year-to-date basis North American wirerod production was 2.9% lower in the four months to April 2008. Weakening demand from the automotive industry, coupled with a resurgance in copper prices and the return of Russian wirerod imports has clearly led to a deteriorating market situation for domestic mills.

Mueller Industries second quarter results highlight the tough times that the US brass mill industry is facing, but that companies can still operate profitably in a challenging market environment. The company's plumbing and refrigeration segment saw sales fall 11% to US$404m, while its operating profits dropped 32% to US$35m. The company blamed lower shipment volumes and lower spreads for the weaker performance. Sales at the company's OEM division, which includes its brass rod activities, rose 10% year-on-year to US$354m, while its operating profits rose 5% to US$19m. The improvement here is due to acquisition of Extruded Metals. Commenting on the results Harvey Karp, Chairman of Mueller Industries said "Mueller's earnings for the first half of 2008 were achieved despite the continuing decline in the housing industry, the sub-prime mortgage meltdown, the turbulence in the financial markets, rising metal costs, sky-high energy prices and a slowing national economy. Considering these adverse circumstances, we are pleased with the results."

CHINALCO's interest in resources acquisitions and Anglo American's early moves into China back up the speculation that the two companies could engage in some form of partnership. Chinalco is the Chinese state-owned resources group tipped as a potential suitor to rescue Anglo American from the unwelcome advances of Xstrata, or as a co-investor in Anglo's MMX Minas- Rio iron-ore project in Brazil. Chinalco and Anglo American have declined to comment on the speculation that, after Anglo's board rejected Xstrata's all-share merger proposal last month, Anglo has been seeking a white knight in either Chinalco or Brazilian iron-ore giant Vale. Vale, though, has said publicly that it is not seeking acquisitions at present.

It looks ordinary, like a razor-thin metal ribbon. But the high-temperature superconductor power transmission cable the Long Island Power Authority recently installed in Ronkonkoma revolutionizes how electricity is delivered, utility and federal officials said. The cable -- which is a fraction of the size of a traditional copper wire but can carry three times the power -- made its ceremonial debut yesterday with officials from LIPA, the U.S. Department of Energy and officials from the company that makes the cable. It went online April 22, the world's first use of the new technology in a commercial power grid. Utilities around the world are looking at superconductivity to improve efficiency of their grids and make them less vulnerable to blackouts. LIPA has buried three 2,000-foot wires in its right-of-way, and it will be installing a second generation of the wire in the same area as a test. "We view superconductor power cables as an important option that will help us further enhance the reliability of our grid as we meet our customers' increasing demands for electric power," LIPA chief executive Kevin Law said. He said the new cable allows the utility to increase capacity where its system has bottlenecks while increasing reliability and longevity and lowering costs. The wire, manufactured by American Superconductor Corp., conducts 150 times the electricity of the same sized copper wires, strand-for-strand. This means transmission cables can be far smaller and still conduct as much as three to five times more power in a smaller right-of-way.