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The controversy was caused after the company agreed a seperate "sweetheat" deal with its largest investor.
On shareholder in the firm to the Times newspaper: "I think the corporate governance of this company is shocking. Heads have to roll. The board of Xstrata are only listening to one third of their shareholders."
Mick Davis, Xstrata's chief executive, said the rights issue represented a good deal for investors.
Xstrata is a major diversified mining group with its headquarters in Zug, Switzerland.
The firm is well positioned in seven major commodity markets: copper, coking coal, thermal coal, ferrochrome, nickel, vanadium and zinc.
It also has a growing platinum group metals business.
