SYDNEY (Reuters) - Forty five children living in the Australian
mining town of Mount Isa, where Xstrata (XTA.L: Quote, Profile,
Research) produces 4 percent of the world's lead, have blood lead
levels above World Health Organisation standards, a report said on
Thursday.

Swiss-based Xstrata and local and state governments are facing legal
action from the parents of a 6-year-old Mount Isa girl who has
suffered injuries to her brain and nervous system, allegedly linked
to lead exposure from the town's mine.

Xstrata has said it does not expect a curtailment of its lead mining
operations at Mount Isa as a result of the Queensland state health
department study, which examined 400 children.

The study confirmed preliminary findings released last month that
identified high blood lead levels in the children.

London-listed Xstrata acquired the Mount Isa operations, a complex of
mines and smelters churning out millions of tonnes of copper, lead,
zinc, coal and silver when it bought MIM Holdings Ltd in 2003. In
2006, Mount Isa produced 210,000 tonnes of zinc in concentrates and
120,000 tonnes of lead in concentrates.

Xstrata has said it is committed to reducing lead emissions from its
mine. It currently operates 15 lead monitoring stations around the
town and is removing old mine sediment that has contaminated the
nearby Leichhardt River.

Mount Isa town, about 1,300 km (800 miles) northwest of the
Queensland city of Brisbane, sits directly adjacent to Xstrata's
zinc, lead, copper and silver mining operation.

Concerns over lead contamination forced another international mining
company, Ivernia (IVW.TO:

http://uk.reuters.com/article/UK_SMALLCAPSRPT/idUKSYD22592420080522