President Banda Welcomes Boost to Zambian Mining Sector

LUSAKA, Zambia, October 14, 2010 - His Excellency Mr. Rupiah Banda has today inaugurated the new Konkola
North copper mine in an official groundbreaking ceremony.

Speaking at the new mine site, the fifth he has opened since taking
office in 2008, President Banda congratulated its owners Konnoco, a joint
venture between South Africa's African Rainbow Minerals (ARM) and Brazilian
mining specialists Vale, for making the project a reality.

The mine, in Chililabombwe, represents an investment of US $380 million
and is expected, on completion in two years time, to produce 45,000 tonnes of
copper per year, contributing to a nationwide copper production target of 1
million tonnes by 2013.

The project is expected to create 1,500 jobs in the construction phase
and 1,500 more when the mine is fully operational. These are in addition to
jobs created by supplying goods and services to the mine.

Speaking at the groundbreaking, President Banda said: "I congratulate the
people of Chililabombwe and join them in looking forward to the development
and prosperity that this new mine will bring to the area. I also congratulate
ARM and Vale in continuing the exploration of Konkola North ore deposits in
order to establish a commercially viable mining operation.

"This demonstrates the success both of my government's policy of
nurturing an investment climate that encourages the sector's growth, and of
the privatization of Zambia's mining sector 12 years ago, which together have
breathed new life into Zambian mineral mining, despite the recent global
economic recession.

"Development such as this is good news for Zambia and I am delighted that
the privatization of the mining industry is bearing the fruit that was
desired and anticipated."

The President highlighted the fact that all the mines operated by ZCCM
Ltd before privatization are now operational, with some also expanding, and
that 20,000 new mining jobs have been created. He also drew his audience's
attention to the widespread new mineral exploration works being carried out
across Zambia to diversify the mining sector and the series of new mines
coming on stream.

President Banda continued: "The vision of my government is to have a
vibrant, well organized mining industry contributing more than 20% to the
Gross Domestic Product and an employment level that will significantly reduce
poverty in the next five years.

"The mining sector is the backbone of our economy and the single sector
that fuels growth. My government will continue to provide a competitive tax
regime that will not jeopardize Zambia's attractiveness to investors. I will
ensure stability in the industry and will continue to encourage investment. I
wish Konkola North copper mine every success."

This is the fifth mine that President Banda has opened since taking
office in 2008. He has opened Lumwana Copper Mines in Northwestern Province
and the Konkola Deep Mining Project in the Copperbelt Province, as well as
reopening the Munali Nickel Mine in Southern Province and the Luanshya Copper
Mines in Copperbelt Province.

Dickson Jere, press at presidentbanda.com, SPECIAL ASSISTANT TO THE PRESIDENT / PRESS AND PUBLIC RELATIONS