MIRA
INFORM REPORT
|
Report Date : |
27.10.2008 |
IDENTIFICATION
DETAILS
|
Name : |
KONKOLA COPPER MINE PLC |
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|
|
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Registered Office : |
Stand M/1408, Fern Avenue Chingola, Copperbelt Province, Chingola,
2000 |
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|
Country : |
Zambia |
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Date of Incorporation : |
23.08. 2000 |
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|
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Com. Reg. No.: |
8062-23 |
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|
|
Legal Form : |
Public Limited Company |
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|
|
|
Line of Business : |
Mining and Metals Company |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD1,300,000.00 |
|
|
|
|
Status : |
Good |
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|
|
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Payment Behaviour : |
No Complaints |
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|
|
|
Litigation : |
Clear |
Company
Name
Konkola Copper Mine PLC
Company acronym: KCM
Contact Information
|
Address |
Stand M/1408 Fern Avenue Chingola Copperbelt Province Chingola, 2000 Zambia |
|
Postal Address |
- |
|
Telephone |
+ 260 21 235 0000 + 260 21 235 0001 |
|
Fax |
+ 260 21 235 0018 + 260 21 2351234 |
|
Email |
info@kcm.co.zm |
|
Website |
www.kcm.co.zm |
|
Other Information |
- |
Registration Data
|
Date of Registration |
23 Aug 2000 |
|
Registration number |
8062-23 |
|
Legal address |
Stand M/1408 Fern Avenue Chingola Copperbelt Province Chingola, 2000 Zambia |
|
Legal Form |
Public Limited Company |
|
Share Capital |
75,500,000,000.00 ZMK |
|
Other Registration Data |
- |
Shareholders
with Shares
|
Shareholder Names |
Share% |
|
Vedanta Resources plc |
51% |
|
ZCI Holdings S.A. Zambia |
28.4% |
|
ZCCM Investment Holdings PLC Zambia |
20.6% |
Vedanta Resources plc, through its subsidiaries, operates as a
diversified metals and mining company in India, Zambia, and Australia. It
primarily produces aluminum, copper, zinc and lead, and iron ore. Its aluminum
operations include bauxite mining, alumina refining, and aluminum smelting
operations. The company produces finished copper in the form of cathode, as
well as converts it into copper rod. Its copper operations include smelting and
refining, copper ore mining, and producing copper, as well as operation of
phosphoric acid plant, sulphuric acid plant, and copper rod plant; and a
refinery and two copper rod plants in India.
Board/Executive
|
Name |
Mr. Kuldip K. Kaura |
|
Position within the company |
Vice Chairman and Chief Executive Office |
|
Country of Birth |
India |
|
Nationality |
Indian |
|
Can fluently speak |
English, Hindi |
|
Background |
Kuldip Kumar Kaura serves as Managing Director and Chief Executive
Officer of Sterlite Industries (India) Ltd. Mr. Kaura has been Chief
Executive Officer of Vedanta Resources PLC UK since March 24, 2005. Mr. Kaura
served as Managing Director of Hindustan Zinc Limited from April 11, 2002 to
March 2004 and the Chief Operating Officer of Vedanta Resources PLC UK from
December 2003 to March 2005. Mr. Kaura served Managing Director and Country
Manager of ABB Ltd. (formerly
Asea Brown Boveri Ltd.) from 1998 to 2002. Mr. Kaura has been a Director of
Sterlite Industries (India) Ltd. since October 2004. Mr. Kaura serves as
Director of Hindustan Zinc Limited, Vedanta Alumina Limited, Copper Mines of
Tasmania Pty., Limited, Konkola Copper Mines PLC, Thalanga Copper Mines Pty.,
Limited and Vedanta Resources PLC, UK. He received B.E. (Honours) in
Mechanical Engineering from Birla Institute of Technology & Science,
Pilani in 1968. |
|
Name |
Mr. C.P. Baid |
|
Position within the company |
Director of Operations and Director |
|
Country of Birth |
India |
|
Nationality |
Indian |
|
Can fluently speak |
English, Hindi |
|
Background |
Chandra Prakash Baid serves as President of BALCO (Operations) of
Vedanta Resources plc. Mr. Baid serves as Director of Operations - KCM of
Vedanta Resources plc. Mr. Baid is responsible for operations at BALCO. He
served as President of BALCO (Operations) of Sterlite Industries India Ltd.,
a subsidiary of Vedanta Resources Plc., since November 2004 and was
responsible for the aluminum business. Mr. Baid served as President of
Operations and Location Head of the Korba plant of BALCO from September 2003 to November
2004. Mr. Baid served as President (Business Head Unit) of MALCO from January
2001 to August 2003. He served as Vice President (SBU-head) of Atul Products
Limited, Senior Manager of Hindustan Lever Limited and Senior Manager of
Engineers India Limited. Mr. Baid serves as a Director of Bharat Aluminium
Company Ltd. He served as an Executive Director of Southern Iron & Steel
Company Limited. He served as a Whole Time Director of BALCO of Sterlite
Industries India Ltd., since November 2004. Mr. Baid has a Bachelor of
Engineering in Mechanical Engineering (Honours) from the Birla Institute of
Technology and Sciences, Pilani and also a Post graduate Diploma in Project
Management from the Project Management Association, New Delhi. |
|
Name |
Mr. Pramod Unde |
|
Position within the company |
Chief Commercial Office |
|
Country of Birth |
India |
|
Nationality |
Indian |
|
Can fluently speak |
English, Hindi |
|
Name |
Mr. Sophie Masupha |
|
Position within the company |
Vice President of Human Resources |
|
Can fluently speak |
English |
|
Name |
Mr. Deb Bandyopadhyay |
|
Position within the company |
Resident Director and Director |
|
Country of Birth |
India |
|
Nationality |
Indian |
|
Can fluently speak |
English, Hindi |
|
Name |
Mr. N. Agarwal |
|
Position within the company |
Chairman |
|
Country of Birth |
India |
|
Nationality |
Indian |
|
Can fluently speak |
English, Hindi |
Changes in
Registration Data
None recorded
Activities (
realistic and officials)
It operates as a mining and metals company in Zambia. Its products
include copper, balt, pyrite, anode slimes, and sulphuric acids. The company
also offers copper cathodes, including rokana electrolytic copper and kabundi
copper cathodes. It sells its products in the Middle East, Far East, South East
Asia, and Japan markets.
The company was founded in 2000 and is based in Chingola, Zambia. It has
operations in India, Australia, and Zambia, as well as in Chililabombwe,
Chingola, Nampundwe, and Kitwe. As of November 5, 2004, it is a subsidiary of Vedanta Resources plc.
annual capacity of 200000 metric tonnes of Copper.
Staff
|
Number of staff employed |
1200 |
Export/Import
( Countries, goods and total values for the period)
|
Imports From |
UK, USA |
|
Importing Terms |
Special agreement, Acceptance credit |
|
Import % and type of product |
20% - Finished Products |
|
Exports To |
Europe, Far East, Middle East |
|
Exporting Terms |
Letters of Credit |
|
Export % and type of product |
30% -Finished Products |
Facilities
|
Owned |
Office, Warehouse, Factory |
|
Premises Size |
- |
Subsidiaries
and Participation
|
Parent Company |
Vedanta Resources plc 16 Berkeley Street London, W1J 8DZ United Kingdom Founded in 1976 29,000 Employees Phone: +44 20 7499 5900 Fax:
+44 20 7491 8440 |
|
Subsidiaries |
- |
|
Affiliates |
Bharat Aluminium Co Ltd Hindustan Zinc Co Ltd Madras Aluminium Co Ltd Sterlite Industries Ltd Copper Mines of Tasmania |
Branches
|
Address |
- |
Bankers
|
Bank |
Zambia National Commercial Bank |
|
Branch |
- |
|
Address |
- |
|
Telephone |
- |
Suppliers,
Partners
|
Suppliers |
Not known |
|
Agencies |
- |
Litigation,
Remarks on Payment
|
Litigation |
None Recorded |
|
Remarks on Payment |
No Complaints |
Financial
Information
It declined all financial information.
Representation
|
Auditors |
- |
|
Solicitors |
- |
Reporter Comments
|
Comments |
In the interview conducted with Mr. Sophie Masupha (Vice President of
Human Resources) , he declined bank account number and financial information citing the
grounds of company confidentiality. |
|
Local Reputation |
The company being investigated is believed by local reporters to be a Medium Trade Risk and to be
fair. |
|
Owner/Shareholders Comments |
All or most of the owners / shareholders have an active participation in
the running of the business. |
|
Age of Business |
Old Business |
|
MAX CREDIT |
USD1,300,000.00 |
NEWS
|
Date |
2007-2008 |
|
Source |
Businessweek |
|
Article |
Konkola Copper Mines PLC Announces Collective Agreement with MUZ and
NUMAW 07/19/2008 Mineworkers Union
of Zambia and National Union of Mining and Allied Workers signed a 15% pay
rise under the 2008 collective agreement with Konkola Copper Mines PLC
management in Kitwe. The collective agreement covers grades KCM 1 to KCM 4. Vedanta Resources have agreed to purchase 28.4% stake in Konkola
Copper Mines from Zambia Copper Investments for $213.15 million. 02/14/2008 Vedanta
Resources have agreed to purchase 28.4% stake in Konkola Copper Mines from
Zambia Copper Investments for $213.15 million. The Zambian Competition
Commission has given its interim authorization for the transaction to
proceed. Completion of the transaction is expected to occur shortly. NM
Rothschild & Sons Limited acted as fairness opinion provider to the deal.
Rand Merchant Bank acted as financial advisor to Zambia Copper Investments.
Faeth Birch and Robin Walker of Finsbury Group acted as the PR Advisor for
Vedanta Resources. Konkola Copper Mines PLC Reports Earning Results for the Fiscal Year
Ended March 31, 2007 07/19/2007 Konkola Copper
Mines PLC reported net profits of $301 million for the financial year ended
March 31, 2007. This signifies an increase from last year's $114 million due
to soaring copper prices. |
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.77 |
|
UK Pound |
1 |
Rs.79.78 |
|
Euro |
1 |
Rs.63.36 |
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)