ARM and Vale approve release of new copper mine in Zambia
27 August 2010
African Rainbow Minerals Limited (�ARM�) and its 50:50 strategic joint venture partner Vale S.A. (“Vale”), owners of �Konnoco Zambia�, are pleased to announce the release of the Konkola North Copper Mine in Zambia.
Total project capital expenditure, in July 2010 terms, is US$380 million. Construction commenced in August 2010 with commissioning of the concentrator plant expected 27 months later. The mine is planned to reach full production in 2015.
The expected life of mine of Konkola North is 28 years. A further three year exploration programme to evaluate area �A�, which has potential to double the output to 100 000 tonnes copper per annum in concentrate is in progress. Initially, the South and East Limb Mines will be developed, after which the deeper, higher grade and wider reef areas will be mined.
The mine’s throughput design is 2.5 mtpa of ore at an average mill head grade of 2.3% copper, yielding 45 000 tonnes of contained copper in concentrate to be toll smelted in Zambia.
ZCCM Investment Holdings plc has a buy-in right into Konnoco Zambia of either 15% or 20% with 5% thereof being a free carry.
ARM Executive Chairman Patrice Motsepe said: �The new copper mine that we are building in Zambia with our partner, Vale, is significant because it adds a new exciting commodity to our diverse commodity portfolio and is also our first investment in Africa.�
The development of the Konkola North copper project adds a new commodity to ARM and to Vale’s growth in copper; it will however be the first time that ARM’s operational interests extend beyond South Africa. The partners view the project as early development for a copper growth strategy in Africa.
In ARM, the newly developed mine will be housed in a new division, ARM Copper.
For all investor relations queries please contact:
African Rainbow Minerals
Chief Executive: ARM Copper
Office: +27(0)11 779 1518
Executive Director: Business Development
Office: +27(0)11 779 1476
Roberto Castello Branco
Investor Relations Executive
27 August 2010
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited