Vedanta Resources PLC
26 October 2004
26th October 2004
Konkola Investment receives ZCI approval
Vedanta Resources plc ('Vedanta'), the London-listed metals and mining group,
announces that its agreement to acquire a 51% controlling stake in Konkola
Copper Mines plc ('KCM') in Zambia, for a total cash consideration of US$48.2
million has now received the approval of the shareholders of Zambia Copper
ZCI currently holds 58% of KCM and this approval marks a significant step
towards completing the acquisition.
KCM is a key strategic asset in the Zambian copper belt with integrated assets
consisting of three mines, a leaching plant and a smelter, which together form
the major undertaking in the Zambian copper beIt in North West Zambia.
The Konkola mine is an underground operation with reserves of 21 million tonnes
('mt') at 3.4% copper. Nchanga has both an open pit and underground mine with
reserves of 28 mt at 1.7% copper and 18 mt at 2.7% copper respectively. The
leaching plant at Nchanga has a capacity of 100,000 tonnes per annum ('tpa').
The Nkana smelter and refinery have a capacity of 180,000 tpa.
Anil Agarwal, Chief Executive of Vedanta, commented:
'The approval of ZCI's shareholders allows us to proceed with a transaction that
will bring benefits to all parties. We look forward to working with our new
colleagues and helping to realise the potential of these attractive assets.'
For further information, please contact:
John Smelt, Head of Investor Relations Tel: +44 20 7499 5900
Vedanta Resources plc +44 07879 642675
James Murgatroyd Tel: +44 20 7251 3801
Notes to Editors
Vedanta is a London listed diversified metals and mining group with zinc, copper
and aluminium operations in India and two copper mines in Australia.
Vedanta holds its interests in these operations through two subsidiaries,
Sterlite Industries (India) Limited ('Sterlite') and the Madras Aluminium
Company ('Malco'). Sterlite is Vedanta's principal subsidiary company and is
currently listed on the Bombay Stock Exchange. Vedanta's copper operations are
owned and operated by Sterlite, which also holds majority stakes in the group's
zinc business, Hindustan Zinc Ltd ('HZL'), and the group's principal aluminium
business, the Bharat Aluminium Company ('Balco').
A previous release containing further details of the transaction was made on
This information is provided by RNS
The company news service from the London Stock Exchange