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Review of operations

PDF iconExploration and copper – TEAL (PDF - 305KB)

About TEAL

ARM holds a 65 percent stake in TEAL Exploration & Mining Incorporated (TEAL), which in turn holds a strategic portfolio of near-production mineral projects and a number of properties with significant discovery potential.

TEAL was formed in 2005 as the company to turn to account the many minerals opportunities on the African continent, especially in respect of copper. This follows the acquisition by ARM, and its predecessor Avmin, of large tracts of exploration targets across southern and central Africa.

TEAL was successfully listed on both the TSX and the JSE within the past financial year, and undertook a successful capital raising programme ($33 million) in late 2005 to fund the development of TEAL's exploration assets in Africa.

Enlarge TEAL map Enlarge map

Project developments include:

Exploration projects include:


The TEAL board is independent of the management of ARM and the relationship between the companies is structured through an arm's length agreement. A number of ARM board members and executives serve on the board of TEAL.

Review of the markets

The global copper market has not been immune to the surge this year in the prices of commodities and resources. Copper prices, along with those of other base metals, reached record levels in May, and although they fell temporarily from these highs, the copper price has regained some lost ground. Despite some fears of a potential slowdown in international economic growth, demand has been forecast to increase by 5 percent this year. However, the current level of stockpiles at the LME is dangerously low and stockpiles in Shanghai are also depleted. This, together with continued strong demand and likely supply shortfalls/disruptions at the world's two largest copper producers, will support the fundamentals in the copper market.

Project Country Interest Resources Concept
Level (000t) Grade Metal
Konkola North Zambia 100%* Inferred 249 241 2.65% 14.56bn/lb (copper) A large-scale well-defined underground resource adjacent to Konkola copper mines. An existing shaft and underground development will allow access to this deposit.
Mwambashi Zambia 70% Measured, Indicated & Inferred 10 980 2.03% 491Mlb (copper) An open-pittable, easily accessible copper deposit.
Kalumines DRC 60% Inferred 8 200 3.51% 634Mlb (copper) Consists of four shallow deposits with high copper/cobalt grades.
Otjikoto Namibia 100% Inferred 24 500 1.13g/t 0.890Moz (gold) An open-pittable gold deposit with potential to expand resource in the near term.
Kafue JV Zambia 51% Three exploration licences covering 2 200km2. JV with BHP Billiton covering geological terrains adjacent to the historic Kabwe zinc and copper mines. Drill-ready for zinc, copper and nickel targets.
Copperbelt JV Zambia 70% Five exploration licence areas covering 2 800km2 adjacent to producing mines on the copperbelt. . JV with KZC, with potential for copper/gold mineralisation.
* Konkola North is subject to a buy-in right up to 20 percent (5 percent free-carry) by state-owned ZCCM-IH.

Review of the year

Following its listing, TEAL is now well positioned to accelerate project and exploration developments on a number of fronts.

Operational milestones during the year include:

Outlook and growth

TEAL's exploration and development programme is currently being accelerated in terms of its existing projects and its considerable opportunities, as it works towards unlocking the considerable value of its asset base.TEAL is an important component of the ARM growth strategy into Africa.

TEAL Exploration & Mining (TL-T)

TEAL Exploration & Mining (TL-T) Enlarge graph

More detailed information is available in the Exploration and copper – TEAL (PDF 305KB) section of the annual report.

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