ZUG, SWITZERLAND, Dec. 11, 2017 /CNW/ - Katanga Mining Limited
(TSX: KAT) ("Katanga" or the "Company") today announces that it has
successfully completed the hot commissioning of the core of the
first train of its new whole ore leach ("WOL") processing facility
at its subsidiary Kamoto Copper Company's ("KCC") copper and cobalt
mine in Lualaba Province, DRC. The Luilu site where the WOL and
electro-winning plants of KCC are located, successfully produced
its first copper cathode on December
11th, 2017.
Copper and cobalt production at KCC has been suspended since
September 2015 pending the
construction of the WOL project. A progressive ramp-up and
commissioning of the remainder of the first train is expected to
follow over the ensuing three months, with the objective of
achieving full capacity on the first train by the end of Q1
2018.
Johnny Blizzard, Chief Executive
Officer of Katanga, commented: "We are very pleased to have met our
anticipated budget and timetable for commissioning the first train
of our new plant and are optimistic that the tangible improvements
from using a whole ore leach processing circuit will be seen in the
near future. We look forward to ramping up to full production
capacity of the first train. The construction of the second train
of the WOL plant is also on schedule and budget and hot
commissioning is still expected to commence in H2 2018."
Separately, the Company announces today that its board of
directors ("Board") has approved capital expenditure budgets for
the engineering and construction of an upgraded cobalt processing
plant (the "Cobalt Debottlenecking Project") and a sulphuric acid
production plant at KCC, as described below.
The Board approved US$15.8 million
in capital expenditures to engineer and construct a facility
designed to reduce throughput bottlenecks in its existing cobalt
processing circuit at KCC to align with the life of mine cobalt
production plan of 30,000 tonnes per annum average annual cobalt
production. The Board also approved US$49
million for cobalt product dryers as part of the cobalt
production circuit. The hot commissioning of the projects are
expected to commence in Q4 2018.
Subject to the successful completion of the second train of the
WOL plant and of the Cobalt Debottlenecking Project, both of which
hot commissioning is expected to commence in H2 2018, the Company
anticipates the following production forecast for the next three
financial years, at the end of which period, it expects to have a
first quartile cost position within the global copper industry cost
curve:
Commodity
|
Units
|
Production
Guidance
|
|
|
FY 2018
|
FY 2019
|
FY 2020
|
Copper
|
kt
|
150
|
300
|
300
|
Cobalt
|
kt
|
11
|
34
|
32
|
The Board also approved US$237
million in capital expenditure spread over 2018 and 2019 to
construct a Sulphuric Acid and Sulphur Dioxide production plant at
KCC. This will improve the reliability of the supply of these
reagents to the WOL processing circuit. The acid plant is designed
to produce 1,900 tpd of of Sulphuric Acid, 200 tpd of Suphur
Dioxide and 17MW co-generated power. This will reduce KCC's
reliance on imported volumes of reagents brought to the mine
through various international borders. The Internal Rate Of Return
(IRR) for the Sulphuric Acid and Sulphur Dioxide production plant
project is expected to be approximately 60%. The hot commissioning
of this plant is expected to commence in H2 2019.
About Katanga Mining Limited
Katanga Mining
Limited operates a major mine complex in the Democratic Republic of Congo producing refined
copper and cobalt. The Company has the potential to become
Africa's largest copper producer
and the world's largest cobalt producer. Katanga is listed on the
Toronto Stock Exchange under the symbol KAT.
Forward Looking Statements
This press
release may contain forward-looking statements. Often, but not
always, forward-looking statements can be identified by the use of
words such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes",
or describes a "goal", or variation of such words and phrases or
state that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved.
All forward-looking statements reflect the Company's beliefs
and assumptions based on information available at the time the
statements were made. Actual results or events may differ from
those predicted in these forward-looking statements. All of the
Company's forward-looking statements are qualified by the
assumptions that are stated or inherent in such forward-looking
statements, including the assumptions listed below. Although the
Company believes that these assumptions are reasonable, this list
is not exhaustive of factors that may affect any of the
forward-looking statements. The key assumptions that have been made
in connection with the forward-looking statements include the
following: the recommencement of full operations of the Company
remaining consistent with management's expectations, the
anticipated performance of the whole ore leach plant, the
construction of the cobalt debottlenecking plant and acid
production plant remaining on schedule and within management's
expectations, there being no significant disruptions affecting the
operations of the Company whether due to labour disruptions, supply
disruptions, power disruptions, rollout of new equipment, damage to
equipment or otherwise; permitting, development, operations,
expansion and acquisitions at KCC being consistent with the
Company's current expectations; continued recognition of the
Company's mining concessions and other assets, rights, titles and
interests in the DRC; political and legal developments in the DRC
being consistent with its current expectations; the continued
provision or procurement of additional funding from Glencore for
operations, the completion of the T17 Underground Mine and the
Power Project (as defined in the Company's Annual Information Form
for the year ended December 31, 2016
dated March 31, 2017); new equipment
performs to expectations; the exchange rate between the US dollar,
South African rand, British pounds, Canadian dollar, Swiss franc,
Congolese franc and Euro being approximately consistent with
current levels; certain price assumptions for copper and cobalt;
prices for diesel, natural gas, fuel oil, electricity and other key
supplies being approximately consistent with current levels;
production, operating expenses and cost of sales forecasts for the
Company meeting expectations; the accuracy of the current ore
reserve and mineral resource estimates of the Company (including
but not limited to ore tonnage and ore grade estimates); and labour
and material costs increasing on a basis consistent with the
Company's current expectations.
Forward-looking statements involve known and unknown risks,
future events, conditions, uncertainties and other factors which
may cause the actual results, performance or achievements to be
materially different from any future results, prediction,
projection, forecast, performance or achievements expressed or
implied by the forward-looking statements. Such factors include,
among others: the failure of the personnel changes or recommended
remedial measures to have their intended effect; unforeseen action
taken by the Ontario Securities Commission or other securities
regulatory authorities; unforeseen delays or changes to the ramp up
of production following the commissioning of the WOL Project;
actual results of current exploration activities; actual results
and interpretation of current reclamation activities; conclusions
of economic evaluations; changes in project parameters as plans
continue to be refined; future prices of copper and cobalt;
increase in capital requirements to construct the cobalt
debottlenecking facility and acid production plant; possible
variations in ore grade or recovery rates; failure of plant,
equipment or processes to operate as anticipated; accidents, labour
disputes and other risks of the mining industry; delays in
obtaining governmental approvals or financing or in the completion
of exploration, development or construction activities, delays due
to strikes or other work stoppage, both internal and external to
the Company as well as those factors disclosed in the Company's
current annual information form and other publicly filed documents.
Although Katanga has attempted to identify important factors that
could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements.
The Company disclaims any intention or obligation to update
or revise any forward-looking statements whether as a result of new
information, future events, or otherwise, except in accordance with
applicable securities laws.
SOURCE Katanga Mining Limited