Our copper business is comprised of operations in India, Zambia and Australia.
Our Indian copper business is principally one of custom smelting and is operated by Sterlite, while our Zambian copper business is owned and operated by KCM. We own 54% of the share capital of Sterlite and 79.4% of the share capital of KCM. Sterlite was India’s largest metals and mining company based on net sales in fiscal 2008. In addition, we own the Mt. Lyell copper mine in Tasmania, Australia, which provides a small percentage of Sterlite’s copper concentrate requirements.
Our Zambian operations are comprised of four mines, one at Konkola, two at Nchanga and one at Nampundwe, a tailings leach plant at Nchanga and a smelter at Nkana. Our copper cathode production increased from 436,000 tonnes in fiscal 2006 to 507,000 tonnes in fiscal 2010. The production increases, together with higher copper market prices, drove revenue of our copper business from $2,241.3 million in fiscal 2006 to $3,812.2.0 million in fiscal 2010.
The mid-shaft loading station at the Konkola Deep Mine Project was commissioned in March 2010 as scheduled. Construction work on the bottom shaft sinking is progressing well for completion by end 2011. The cost of KDMP project has been revised upward from US$674 million to US$973 million due to weak ground conditions, increase in scope post detail engineering and consequent extra time required, and commodity price increase.
