ARM Copper

ARM Copper was formed in August 2010 with the announcement of ARM’s 50:50 joint venture partnership with global diversified mining group Vale S.A. on the Lubambe Copper Project.

ARM Copper holds the following:

• The Lubambe Copper Project (previously Konkola North Copper Project)
• Lubambe Extension Area (previously known as Konkola North Area A)

Divisional structure

• *The Lubambe Copper Project (previously Konkola North Copper Project) was subject to a buy-in right of up to 20% (5% free carried interest) by State-owned Zambia Consolidated Copper Mines Investment Holdings plc (ZCCM-IH). ZCCM-IH has exercised this right and the 20% to ZCCM-IH has been transferred.

Management

Dan Simelane

Chief Executive: ARM Copper

In August 2010, ARM and its 50:50 strategic joint venture partner Vale S.A. announced the release of the Lubambe Copper Project (previously known as the Konkola North Copper Project) in Zambia, and which is hosted in the ARM Copper Division.

The Project, which is located in the Chililabombwe District in the Copperbelt Province, was released for approval by ARM and Vale in August 2010. Capital expenditure for the development of the Project is US$400 million with construction already under way. Lubambe is expected to produce 45 000 tonnes of copper in concentrate per annum with the first copper extraction expected in 2013 and full production in 2015. On completion, the mine is expected to provide ongoing employment for approximately 1 500 people.

The life of the mine is estimated at 28 years. A further three year exploration programme to evaluate area A which has the potential to increase output to 100 000 tonnes per annum is already in progress. Initially the South East Limb will be developed after which the deeper higher grade and wider reef areas will be mined.

The development of the Konkola North Copper Mine adds a new commodity to ARM’s portfolio of commodities and is ARM’s first operational interest outside of South Africa. ARM sees the Project as early development for a copper growth strategy in Sub-Saharan Africa.