Discussion:Konkola Copper Mines

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Ce sont les résultats de KCM du 1er semestre dans les comptes Vedanta pour l'exercice fiscal 2006

Copper - Zambia

                                            (in US$ millions, except as stated)

                                H12006     H1 2005     Change          FY2005
                                         (restated)*                (restated)*, **
Revenue                           304.9          -         NA           249.2
EBITDA                             90.3          -         NA            76.0
  EBITDA Margins                  29.6%          -         NA            30.5%
Operating Profit                   63.3          -         NA            52.7
Production Volume (000 tons)
  Cathode                           81           -         NA              68
  Mined metal content               54           -         NA              43
Average LME Prices (US cents/lb)  162.3           -         NA           136.0
Unit Costs (US cents/lb)          113.2           -         NA           106.2

(* Restated for the impact of adopting IFRS, ** Pertains to the five months from November 2004 to March 2005)

The group's 51% interest in KCM was acquired in November 2004. The results of KCM are fully consolidated with the Group results for the six months ended 30 September 2005. No prior period comparatives are available.

Industrial action in July 2005 marginally affected production at KCM but was quickly resolved. Despite this temporary setback and a nationwide fuel crisis in Zambia, production levels remained relatively unchanged. We have undertaken several initiatives including process improvements, transfer of best practices, the construction of a new acid plant and the appointment of a new management team. We believe the impact of these actions will be reflected in KCM's performance for the second half of FY 2006 and onwards.