| Fri 27 Aug 2010, 16:00 | | ARI - African Rainbow Minerals Limited - ARM and Vale approve release of new |
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ARI
ARIM
ARI - African Rainbow Minerals Limited - ARM and Vale approve release of new
copper mine in Zambia
African Rainbow Minerals Limited
(Incorporated in the Republic of South Africa)
(Registration number 1933/004580/06)
JSE Share code: ARI
ISIN: ZAE000054045
("ARM" or the "company")
ARM and Vale approve release of new copper mine in Zambia
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
Johannesburg
27 August 2010
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited
Date: 27/08/2010 16:00:01 Produced by the JSE SENS Department.
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