KCM ANNOUNCES IMPROVED Q3 PRODUCTION
Date: Chingola, Thursday, 28 January 2010
Paper: PRESS STATEMENT

Konkola Copper Mines plc, a subsidiary of the London-listed FTSE 100 Vedanta Resources Group plc reports that it has produced 41 958 tonnes of finished copper in the 3rd Quarter of the 2009/2010 FY.

The figure includes 13 641 tonnes from purchased concentrates and is significantly higher than the 25 472 tonnes produced in the 3rd Quarter of 2008. The increase has been due to the successful ramp up of the new 300, 000 capacity Nchanga Smelter which has now been certified under ISO 9001 for Quality. KCM is now focusing on acquiring the ISO 14001 certification for the Environment in March this year and OHSAS 18001 for Safety in August. Production from the Tailings Leach Plant fell to 7 922 tonnes compared to 11 263 tonnes of the corresponding quarter in 2008. This was primarily due to reduction in throughput and declined ore grade from dam suffered in the period and also partially the result of pipe chockages during the labour unrest of November. EBITDA (EARNINGS BEFORE INTEREST, TAX, DEPRECIATION & AMORTISATION) in Q3 was $36.00 million compared with a loss of $165 million in the same quarter of the previous year. The increase in profitability was primarily on account of higher copper prices that averaged $6 643 per tonne in Q3 (an increase of 69% over the previous term) allied to lower operating costs. KCM also reports that the Konkola Deep Mining Project (KDMP) is progressing well with cold commissioning of the rock winder for Mid-Shaft Loading (MSL) and all milestones have been achieved on time. It is expected that commissioning of the MSL station will take place at the end of the FY 2009 and full project completion by end of 2012.

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