Konkola Copper Mines Plc (KCM)

completed

The project is the purchase and rehabilitation of the assets of the Konkola, Nkana and Nchanga Divisions and the Nampundwe pyrite mine from Zambia Consolidated Copper Mines Ltd. (ZCCM). The project was approved by the IFC Board of Directors on 22 February 2000. project documents were signed on 31 March 2000 and the new company took over management on the same day.Zambia Consolidated Industries (ZCI) an Anglo American plc (Anglo) subsidiary acquired, through a new company, Konkola Copper Mines plc (KCM), the Konkola, Nchanga and Nampundwe assets of ZCCM. In addition the Nkana smelter of ZCCM (SmelterCo) Ltd is managed by KCM, on behalf of Anglo American who have a management agreement with SmelterCo. The KCM assets have suffered from many years of underinvestment, declining production and high operating costs. It will take a number of years to rehabilitate the assets, improve management and reduce operating costs. A 2-Phase development program is envisaged. Phase 1, the current project, is a 3-year US$345 million rehabilitation program of the existing KCM assets. Virtually all aspects of the existing mining, milling, smelting and refining facilities at each of the mines are being refurbished and/or upgraded. Production is expected to increase from the current annualized level of 183,000 tpa copper to 220,000 tpa copper. About 2,500 tpa of cobalt will be produced. Phase 2, to be considered at a later date, is the development of a new underground mine (Konkola Deep) to provide 6 million tpa of ore.The final documents now being disclosed incorporate environmental and social assessment of the Konkola Deep project.