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 59.9% 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 446,000 tonnes in fiscal 2009. The production increases, together with higher copper market prices, drove revenue of our copper business from $2,241.3 million in fiscal 2006 to $3,311.0 million in fiscal 2009.
KCM is also installing a new smelter at Nchanga, which is scheduled for commissioning in mid-2008. The smelter, with a total capital outlay of approximately $470 million, is expected to have a capacity to produce 300,000 tpa of copper anode and 1,850 tonnes per day of sulphuric acid. Feed concentrates are expected to be primarily from KCM’s own mines.
KCM also announced the Konkola Deeps Mining Project or KDMP, approved KCM’s board of directors in July 2005. KDMP will unlock the potential of the 215mt Konkola ore body. Mid-shaft loading is expected in early 2009 with full commissioning in late 2010. Post completion of KDMP, ore production from the Konkola mine will increase from 2.0 mtpa to 7.5 mtpa. The estimated project cost is $674 million. Work on the KDMP, including the sinking of the main hoisting shaft and other auxiliary shafts, is progressing on schedule.