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Letter to Shareholders enclosing declaration
1 April 2005

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1988/9
Pasminco is formed through the merger, effective from July 1988, of the zinc-lead-silver mining, smelting and international marketing activities of CRA Limited and North Broken Hill Peko Limited. A public share issue raises $203 million, with subsequent listing on the Australian Stock Exchange in March 1989. Ownership is CRA 40%, North 40%, other 20%. Mr Donald S Carruthers is Founding Chairman and Mr Peter C Barnett is Founding MD&CEO. $217 million is spent on modernisation programs.

1989/90
The Pasminco Exploration Unit and Pasminco Research Centre are formed. Major modernisation and environmental programs continue at Broken Hill, Hobart and Port Pirie, including construction of a surface decline at Broken Hill which enables direct vehicular access from the surface to underground workings.

1990/1
Pasminco records a loss as world economic growth slows down and metal prices fall sharply. Operations at Elura are scaled down. Following a benchmarking study, programs are introduced to improve key operating factors at all sites. The Mining, Metals and Corporate offices are consolidated at one location in Melbourne. Pasminco begins earning 40% of CRA`s Dugald River deposit in NW Queensland.

1991/2
The effluent treatment plant at Hobart is commissioned. Pasminco participates in new community health programs at Broken Hill and Port Pirie to address elevated blood lead levels.

1992/3
Mr Mark R Rayner becomes Chairman. CRA Limited and North Broken Hill Peko Limited reduce their shareholdings from approximately 40% each to around 31% and 20% respectively. Pasminco`s Vision & Values are adopted. The northern operations at Broken Hill are closed. Pasminco commits to cease ocean disposal of jarosite at Hobart; investigations continue into finding permanent long-term solutions to jarosite disposal at both Hobart and Budel. The new gas purification plant is commissioned at Hobart and 36 houses adjacent to the Cockle Creek smelter are purchased to develop an environmental buffer zone.

1993/4
Pasminco`s UK-based operations (Avonmouth, Bloxwich) are sold to MIM Limited for $111 million. In May, 38.9% of Pasminco`s stock is placed with institutional investors, reducing CRA`s holding to 10% and removing North from the register. In November, $88 million is raised through the placement of 10% of Pasminco`s equity with institutional investors. In December 1993, agreement is reached with Dutch authorities for Budel to cease production of jarosite from mid-1998. In February 1994, the Australian Government issues the final permit for Hobart`s ocean disposal of jarosite until end 1997 to enable the co-treatment process to be implemented. Pasminco begins implementing its Lead Strategy, focusing on employee exposure and emission control.

1994/5
Pasminco returns to profitability and resumes dividend payments. Shell`s 50% interest in the joint venture zinc smelter at Budel is acquired for Nlg 14 million ($A10 million) giving Pasminco 100% ownership, and the supply of low-iron zinc concentrates from CRA`s planned Century mine in NW Queensland is negotiated. Pasminco`s first exploration project offshore from Australia is initiated when agreement is reached with the Pakistan Mineral Development Corporation and Balochistan Development Authority whereby Pasminco may earn a 75% interest in the Duddar zinc deposit and surrounding exploration areas by completing a feasibility study on the project. The fertiliser plant at Hobart is sold. Mr Peter Barnett retires on 30 June 1995 and is succeeded by Mr David M Stewart.

1995/6
Pasminco adopts the break-even zinc price as a key performance indicator in its goal of being profitable at all points of the metal price cycle. In August 1995, CRA disposes of its remaining 10% shareholding in Pasminco. Following delays to the Century project (as it commences the "right to negotiate" process under Australia`s Native Title Act), Budel seeks an extension to its jarosite licence from the Dutch authorities. Capital works commence at the Hobart and Port Pirie smelters for the co-treatment project. Sixty per cent of employees take up options when the Pasminco Limited Employee Option Plan is introduced in November 1995.

1996/7
In January 1997, Pasminco announces the acquisition of the Century and Dugald River deposits from CRA for $345 million, subject to the necessary Queensland Government approvals being issued. In May 1997, the Gulf Communities Agreement is signed, clearing the way for these approvals. Dutch authorities extend Budel`s jarosite licence to end June 2000. Pasminco signs a Greenhouse Cooperative Agreement with the Australian Government. The Port Pirie refinery replacement and expansion commences. Pasminco`s sites adopt new names to reflect Group identity.

1997/8
In September 1997, Pasminco completes the Century acquisition. Funding is raised through US$600 million of debt facility, a $183 million global placement to institutions, and a $490 million rights issue. The co-treatment process to eliminate jarosite production is commissioned at the Hobart and Port Pirie smelters. Pasminco sells its railway business in Tasmania.

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