Further re Introduction of Strategic Equity Partner for Konkola Copper Mines plc

    1

              
  Zambia Copper Investments
           Limited
   (Registered in Bermuda)
    JSE code: ZCI  ISIN:
        BMG988431240
  LSE code: ZCI    Euronext
     code: BMG988431240
  ("ZCI" or "the company")
              
                                        
                                        
    FURTHER ANNOUNCEMENT IN RESPECT OF THE INTRODUCTION OF A STRATEGIC EQUITY
                      PARTNER FOR KONKOLA COPPER MINES PLC
                                        

1.  Introduction

    Shareholders  are referred to the detailed terms announcement  published  on
    20   August  2004  relating  to  the  purchase  by  Vedanta  Resources   plc
    ("Vedanta") of a 51% equity stake in Konkola Copper Mines plc ("KCM")  ("the
    Vedanta investment").

2.  Shareholders meeting

    A  general  meeting  of  ZCI ordinary shareholders to consider  the  Vedanta
    investment  will  be  held at 10:00 on Tuesday 26 October  2004,  at  Hermes
    Amphitheatre, Paris Expo Coeur Dfense, 110 Esplanade du Gnral de  Gaulle,
    92032 Paris La Defence Cedex, France.

3.  Important dates and times

                                                                2004
     Last  day to lodge form of proxy for  general         Monday 25
     meeting by 10:00 on                                     October
     General  meeting of shareholders to  be  held        Tuesday 26
     at 10:00 on                                             October
     Results   announcement  published  on   Stock                  
     Exchange  News Service of the JSE  Securities        Tuesday 26
     Exchange  South Africa ("JSE"), London  Stock           October
     Exchange and Euronext on
     Results  announcement published in the  South      Wednesday 27
     African press on                                        October

    Notes:
    1:  These  dates  and  times  are  subject to change.  Any  changes  will  be
         published on SENS, LSE and Euronext and in the South African press.
    2:  These times are South African and Central European times.

4.  Pro forma financial effects of the Vedanta investment

    The  pro  forma financial effects of the transaction are set out  below  and
    are  based  on  the published unaudited interim results for  the  six  month
    period  ended  30 June 2004. The pro forma financial effects are  calculated
    taking into account that post the Vedanta investment, KCM will no longer  be
    considered  a subsidiary company of ZCI for accounting purposes.  Therefore,
    ZCI  will  no  longer  consolidate KCM and will treat  it  as  an  associate
    company for accounting purposes.
    
    The  pro  forma financial effects set out below do not necessarily represent
    or  indicate sustainable earnings or future profits of ZCI. Accordingly, the
    pro   forma  financial  effects  set  out  below  have  been  prepared   for
    illustrative purposes only.
        
                           Actual  Pro forma   Increase   Increase
                           before  after the          /          /
                   Not        the    Vedanta  (Decrease  (Decrease
                    e     Vedanta  investmen          )          )
                        investmen          t                   (%)
                                t
     Earnings per   3      24.161     19.844     (4.32)    (17.88)
     ordinary
     share
     (cents)
     Headline              24.161     19.844     (4.32)    (17.88)
     earnings per
     ordinary
     share
     (cents)
     Tangible net   5      57.831     51.312     (6.52)    (11.27)
     asset value
     ("NAV") per
     ordinary
     share
     (cents)
     Actual         6     126 197    126 197          -          -
     number of
     ordinary
     shares in
     issue ('000)
     Weighted       6     126 197    126 197          -          -
     average
     number of
     ordinary
     shares in
     issue ('000)
    
    Notes:
     The pro forma financial effects of the Vedanta investment set out above are
     based on the following assumptions:
    1.   the  earnings,  headline earnings and tangible NAV per  ordinary  share
       reflected in the "Before the Vedanta investment" column were extracted from the
       company's unaudited results for the six months ended 30 June 2004;
2.  the effect on tangible NAV per ordinary share reflected in the "After the
Vedanta investment" column assumes that the transaction was effective on 30 June
2004;
3.  earnings per ordinary share are equal to fully diluted earnings per
ordinary share;
4.  the effect on earnings and headline earnings per ordinary share reflected
in the "After the Vedanta investment" column assumes that the transaction was
effective on 1 January 2004;
5.  there is no difference in the value for NAV per ordinary share and tangible
NAV per ordinary share as there are no intangible assets on the ZCI balance
sheet;
6.  the number of ordinary shares is indicative only and is based on the
ordinary shares in issue at 1 January 2004;
7.  the deferred consideration, payable by Vedanta, to be received from 2005 to
2008 was discounted to a net present value at 30 June 2004 and 1 January 2004
using a discount rate of 2.46% per annum;
     8.the  deferred consideration was amortised on a straight line  basis  over
       the period from the effective date to December 2008;
     9.      ZCI  had  a  28.4% share in the KCM value increase  resulting  from
       the $25 million cash injection into KCM;
     10.     due  to  its  contingent nature the shortfall  funding  commitment,
       provided by Vedanta pursuant to the terms of the Vedanta investment,  has
       not been included in the above calculations; and
    11.the  financial  effects  have been prepared on  the  basis  of  the  non-
       consolidation  of  the KCM Employee Share Ownership Trust  ("ESOT").  The
       directors  of  ZCI  are  of  the opinion that  the  ESOT  should  not  be
       consolidated  as it does not constitute a trust or scheme  in  terms  of,
       and  therefore  subject  to, the provisions of Schedule  14  of  the  JSE
       Listings Requirements.
     

5.  Documentation

    A  circular setting out the terms of the Vedanta investment and containing a
    notice  of  a  general  meeting  of  ZCI  shareholders  was  posted  to  ZCI
    shareholders on Monday 11 October 2004.

    
    By order of the board
    
    Bermuda
    11 October 2004
Zambia Copper (LSE:ZCI)
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