Buyer chosen for Zambian mines

Copper accounts for 50% of Zambia's foreign currency receipts

The Zambian government has chosen a buyer for the country's major copper mines.

India's Sterlite Industries was selected from a group of international firms bidding for shares in the Konkola Copper Mines (KCM).

The mines almost closed last year when Anglo-American pulled out of the venture because of high production costs and low copper prices.

The Zambian authorities have been looking for a new buyer to invest in the business and make sure it is modernised.

Sterlite was one of four companies put on a short-list for the KCM stake last month.

Other mining interests

"Sterlite has made a commitment to funding a substantial capital expenditure programme thereby securing a long-term future for KCM and its workforce," Information Minister Newstead Zimba told reporters.

Sterlite has copper mining interests in India and Australia and is also involved in mining gold, silver, zinc, lead and aluminium.

KCM is Zambia's biggest mining company with more than 11,000 employees.

It accounts for about two-thirds of Zambia's metals production.

Last year it made a loss of $159m (£98m).