ARM and Vale approve release of new copper mine in Zambia
Friday, 27 August 2010
Johannesburg, South Africa
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 Vale S.A.
Dan Simelane Roberto Castello Branco
Chief Executive: ARM Copper Investor Relations Executive
Office: +27(0)11 779 1518 Office: +55-21-3814-4540
E-mail: dan.simelane@arm.co.za E-mail: roberto..castello.branco@vale.com
Stompie Shiels
Executive Director: Business Development
Office: +27(0)11 779 1476
E-mail: stompie.shiels@arm.co.za
Disclaimer
Certain statements in this report constitute forward looking statements that are neither reported financial results nor other historical information. They include but are not limited to statements that are predictions of or indicate future earnings, savings, synergies, events, trends, plans or objectives. Such forward looking statements may or may not take into account and may or may not be affected by known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward looking statements. Such risks, uncertainties and other important factors include among others: economic, business and political conditions in South Africa; decreases in the market price of commodities; hazards associated with underground and surface mining; labour disruptions; changes in government regulations, particularly environmental regulations; changes in exchange rates; currency devaluations; inflation and other macro-economic factors; and the impact of the AIDS crisis in South Africa. These forward looking statements speak only as of the date of publication of these pages. The Company undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect
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