History

Konkola Copper Mines Plc ("KCM") is a major integrated copper producer in Zambia, primarily engaged in the exploration for, mining, production and sale of copper and copper by-products. KCM is a subsidiary of Vedanta Resources Plc ("Vedanta"), a London-listed diversified FTSE 100 metals and mining group with operations in India, Australia, South Africa, Namibia, Zambia & Ireland. KCM aims to be an over 400,000t pa finished copper producer (FY 2012: 200,000t). Its mining operations are located in the Copperbelt Province of Zambia. KCM's fully integrated copper operations include a number of open pit mines, a large underground mine, leaching plant, a state of the art new flash smelter, modernized concentrators, a modernized refinery and a sulphuric acid plant. Being one of the largest players situated on one of the highest-grade copper seams of the world, is one of our most significant competitive advantages. The mines in the Copperbelt were initially owned by Anglo American Corporation and Roan Selection Trust. However, in the early 1970s the mines were nationalised. During the subsequent 20-year period, the government's ownership of the mines was restructured several times. In 1991, Zambia became a multi-party state and the government embarked on an exercise to privatize parastatal companies, including the mining industry. By March 2000, the privatization programme of the largest mining assets was completed. Anglo American reacquired a 51 per cent stake in Konkola Copper Mines which comprised mining operations in Chingola and Konkola, and smelting/refining operations at Nkana. However, in September, 2002 Anglo American withdrew as shareholders of KCM, leaving a restructured company whose main shareholders were again government entities, ZCCM-IH and ZCI. In November 2004, Vedanta Resources became the major shareholder in KCM with a 51 per cent share in the company. In 2008, Vedanta Resources increased its holding in the company to 79.4 percent. Since, its original acquisition, Vedanta has invested over $2.5bn to upgrade equipment, build new facilities and expand capacity. The investments have increased reserves & resources and increased the life of the mines.