Vedanta Resources updates on copper production for KCM, Zambia

Chairman Of Vedanta Resources-anil Agarwal
Chairman Of Vedanta Resources-anil Agarwal

Production Performance

FY 2013-14 FY 2012-13 Change
Production (kt)
Mined Metal 128 159 -19.20%
Finished Copper 177 216 -18.10%
Integrated 124 160 -22.30%
Custom 53 56 -5.80%


The year saw mined metal production fall by 19.2% in FY 2013 to 2014 compared to the previous year. This was mainly due to the suspension of mining operations in January 2013 at the Chingola open pit mine (COP F&D). Konkola production was also affected by the temporary closure of shafts 1 & 4 due to safety and the integrity and availability of equipment. Mined metal production also included higher tailings leach plant primary copper production of 56,000 tonnes.

Copper custom production was lower by 5.8%, constrained by blending challenges and by an ongoing issue regarding the recovery of VAT credits. On this latter point we are in discussions with the Zambian Government on this pressing industry-wide matter.


KCMs traditional markets in Asia and the Middle East experienced improved demand in the latter half of the year, leading to improvement in premium in the annual negotiations for CY 2014. The unit cost of production without royalty, logistics, depreciation, interest and sustaining capex decreased to 238.4 US cents per lb in FY 2013 to 2014, 6.5% lower than the previous year. This was due to the suspension of operations at the high cost COP F&D mine, partially offset by lower volumes.

Financial Performance;

FY 2013-14 FY 2012-13 Change
Revenue 1271.4 1742.8 -27.00%
EBITDA 156.3 257.3 -39.30%
EBITDA Margin 12.30% 14.80% 0
Depreciation and amortisation 171.5 193.7 -11.50%
Operating (Loss)/Profit before special items -15.3 63.6 -124.10%
Share in group operating profit (%) -0.7 2.5 0
Capital Expenditure 150.9 259.8 -41.90%
Sustaining 114.2 171.4 -33.40%
Growth 36.7 88.4 -58.50%

EBITDA in FY 2013 to 2014 was USD 156.3 million compared with USD 257.3 million in the previous year, impacted by lower volumes and lower metal prices. These factors also contributed to a loss of USD 89.0 million after tax at Copper Zambia during FY 2013 to 2014.

Source – Strategic Research Institute, Steel Guru



  1. They should have cared to show this nonsense a long time ago. These investors have for some time taken us for granted. They should show respect and appreciation because they have been reaping so much at the expense of we the citizens of this country.

  2. They are Using the Belief that Zambians Easily forget to justify lies and wrong doing , they are wrong side. Zambians do you believe these lies?

  3. At the expense’s of the poor zambian miners so sad nobody is doing. Something about it.