ZUG, Switzerland, July 30, 2018 /CNW/ - Katanga Mining
Limited (TSX: KAT) ("Katanga" or the
"Company") today announces its 2018 second quarter
production results and date of release of 2018 second quarter
financial results. Katanga's unaudited interim financial statements
and accompanying Management's Discussion and Analysis will be filed
on SEDAR, www.sedar.com.
Production highlights during the three and six months ended
June 30, 2018
Commissioning and resumption of production after 2015
suspension
On September 11, 2015, the Company
announced the decision to suspend the processing of copper and
cobalt during the construction phases of the whole ore leach
project ("WOL Project"). The suspension continued throughout most
of 2017 with copper production resuming on December 11, 2017.
- During Q2 2018, construction continued on phase 2 of the WOL
Project. Progress was made on the high-grade clarifier, receiving
thickener and the post-leach clarifier for copper production. The
core copper circuit of train 2 is expected to be completed and
commissioned during Q3 2018. The final components of the WOL
Project being the train 2 counter current decantation ("CCD") wash
circuits and electro-winning tank house are scheduled for
completion and commissioning by Q4 2018; and
- Copper cathode production has increased to 35,615 tonnes in Q2
2018 from 27,677 tonnes in Q1 2018. Cobalt contained in hydroxide
has increased to 2,429 tonnes in Q2 2018 from 525 tonnes in Q1
2018. The increase in copper cathode and cobalt contained in
hydroxide are related to the ongoing ramp-up of production and the
commissioning and re-commissioning of related assets.
Mining
|
|
Three months
ended
|
Six months
ended
|
|
|
Jun
30,
|
Mar 31,
|
Jun 30,
|
Jun
30,
|
Jun 30,
|
|
|
2018
|
2018
|
2017
|
2018
|
2017
|
Ore
mined*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KOV open
pit
|
tonnes
|
1,894,752
|
775,393
|
-
|
2,670,145
|
-
|
Mashamba East open
pit
|
tonnes
|
885,791
|
626,808
|
-
|
1,512,599
|
-
|
Total open
pits
|
tonnes
|
2,780,543
|
1,402,201
|
-
|
4,182,744
|
-
|
|
|
|
|
|
|
|
KTO
underground
|
tonnes
|
73,685
|
-
|
-
|
73,685
|
-
|
Total ore
mined
|
tonnes
|
2,854,228
|
1,402,201
|
-
|
4,256,429
|
-
|
|
|
|
|
|
|
|
Waste
mined*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KOV open
pit
|
tonnes
|
7,300,157
|
6,030,880
|
8,682,206
|
13,331,037
|
14,849,211
|
Mashamba East open
pit
|
tonnes
|
5,141,270
|
3,308,558
|
3,513,785
|
8,449,828
|
4,881,019
|
Total open
pits
|
tonnes
|
12,441,427
|
9,339,438
|
12,195,991
|
21,780,865
|
19,730,230
|
|
|
|
|
|
|
|
KTO
underground
|
tonnes
|
43,393
|
39,816
|
-
|
83,209
|
13,365
|
Total waste
mined
|
tonnes
|
12,484,820
|
9,379,254
|
12,195,991
|
21,864,074
|
19,743,595
|
|
|
|
|
|
|
|
Total material
mined
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KOV open
pit
|
tonnes
|
9,194,909
|
6,806,274
|
8,682,206
|
16,001,182
|
14,849,211
|
Mashamba East open
pit
|
tonnes
|
6,027,061
|
3,935,365
|
3,513,785
|
9,962,427
|
4,881,019
|
Total open
pits
|
tonnes
|
15,221,970
|
10,741,639
|
12,195,991
|
25,963,609
|
19,730,230
|
|
|
|
|
|
|
|
KTO
underground
|
tonnes
|
117,078
|
39,816
|
-
|
156,894
|
13,365
|
Total material
mined
|
tonnes
|
15,339,048
|
10,781,455
|
12,195,991
|
26,120,503
|
19,743,595
|
|
|
|
|
|
|
|
Total contained
copper
|
tonnes
|
58,350
|
28,761
|
-
|
87,111
|
-
|
|
|
|
|
|
|
|
Ore
summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total primary ore
mined
|
tonnes
|
1,374,441
|
644,344
|
-
|
2,018,785
|
-
|
Average Cu
grade
|
%
|
3.54
|
3.92
|
-
|
3.66
|
-
|
Average Co
grade
|
%
|
0.42
|
0.55
|
-
|
0.46
|
-
|
|
|
|
|
|
|
|
Total very low-grade
ore mined
|
tonnes
|
689,071
|
204,815
|
-
|
893,886
|
-
|
Average Cu
grade
|
%
|
1.01
|
1.08
|
-
|
1.03
|
-
|
Average Co
grade
|
%
|
0.20
|
0.22
|
-
|
0.20
|
-
|
|
|
|
|
|
|
|
Total cobalt ore
mined
|
tonnes
|
790,716
|
553,042
|
-
|
1,343,758
|
-
|
Average Co
grade
|
%
|
0.68
|
0.51
|
-
|
0.61
|
-
|
Average Cu
grade
|
%
|
0.35
|
0.23
|
-
|
0.30
|
-
|
Total ore
mined
|
tonnes
|
2,854,228
|
1,402,201
|
-
|
4,256,429
|
-
|
|
|
|
|
|
|
|
Average Cu
grade
|
%
|
2.04
|
2.05
|
-
|
2.05
|
-
|
Average Co
grade
|
%
|
0.44
|
0.49
|
-
|
0.45
|
-
|
*The mining
disclosure has been enhanced to include classification of ore
volumes into different categories, being primary copper containing
ore, very low-grade copper containing ore (but still above cut-off
grade) and cobalt containing ore (that contains copper under the
copper cut-off grade but cobalt over the cobalt cut-off grade). The
primary ore component, defined as having a Cu grade of greater than
1.25%, the very-low grade component, defined as having a Cu grade
between 0.65% and 1.25% and the cobalt ore component, defined as
having a Cu grade of less than 0.65% and Co grade greater than
0.30%. A comparative has been shown for Q1 2018, which includes ore
previously classified as waste due to its low-grade
nature.
|
Total ore mined increased to 2,854,228 tonnes in Q2 2018 from
1,402,201 tonnes in Q1 2018. Total ore mined increased to 4,256,429
tonnes in H1 2018 from nil tonnes in H1 2017.
Total waste mined increased to 12,484,820 tonnes in Q2 2018 from
9,379,254 tonnes in Q1 2018. Total waste mined increased to
21,864,073 tonnes in H1 2018 from 19,743,595 tonnes in H1 2017.
Total contained copper increased to 58,350 tonnes in Q2 2018
from 28,761 tonnes in Q1 2018. Total contained copper increased to
87,111 tonnes in H1 2018 from nil tonnes in H1 2017.
The increase in total material mined in the open pits in Q2 2018
against Q1 2018 is relating to the seasonal transition from the
rainy season to dry season which allowed for greater equipment
utilization as well as the ongoing ramp-up of production, in line
with the optimized mine plan following the resumption of ore mining
activities in Q4 2017. It has been supported by the
re-commissioning and commissioning of:
- six CAT 793D trucks for increased hauling capacity;
- one CAT D9R dozer related to the ongoing mining ramp-up;
- one CAT 6060 diesel shovel for increased mining capacity;
- two CAT 745 ADT lube trucks for
increased ancillary work;
- one CAT CS74B compactor for road and access maintenance;
and
- one CAT 745 ADT service truck to
support production ramp-up.
The increase in total contained copper in Q2 2018 compared to Q1
2018 and H1 2018 compared to H1 2017 is driven by an increase in
total ore mined due to the suspension of ore mining activity in the
2017 comparable periods and the subsequent resumption of
production, in line with the optimized mine plan, to ensure
sufficient ore availability for the WOL Project.
The increase in total material mined in the KTO underground in
Q2 2018 against Q1 2018 and H1 2018 against H1 2017 is relating to
the commencement of training in secondary development (ore) as well
as the continuation of training in primary development (waste).
The increase in very low-grade ore and cobalt ore mined in Q2
2018 against Q1 2018 and H1 2018 against H1 2017 is relating to
optimization of the long-term feed strategy; very low-grade ore and
cobalt ore are currently being stockpiled for future feed into the
processing plant.
Kamoto concentrator ("KTC")
|
|
Three months
ended
|
Six months
ended
|
|
|
Jun
30,
2018
|
Mar 31,
2018
|
Jun 30,
2017
|
Jun
30,
2018
|
Jun 30,
2017
|
Total material
milled
|
tonnes
|
1,970,359
|
1,624,655
|
342,562
|
3,595,014
|
690,608
|
|
|
|
|
|
|
|
KITD material
milled
|
tonnes
|
882,768
|
745,983
|
342,562
|
1,628,751
|
690,608
|
Cu grade in
ore
|
%
|
1.66
|
1.43
|
1.26
|
1.56
|
1.27
|
Co grade in
ore
|
%
|
0.17
|
0.17
|
0.14
|
0.17
|
0.15
|
|
|
|
|
|
|
|
Open pit ore
milled
|
tonnes
|
1,044,821
|
878,672
|
-
|
1,923,493
|
-
|
Cu grade in
ore
|
%
|
3.60
|
3.92
|
-
|
3.74
|
-
|
Co grade in
ore
|
%
|
0.41
|
0.55
|
-
|
0.48
|
-
|
|
|
|
|
|
|
|
Underground ore
milled
|
tonnes
|
42,770
|
-
|
-
|
42,770
|
-
|
Cu grade in
ore
|
%
|
3.32
|
-
|
-
|
3.32
|
-
|
Co grade in
ore
|
%
|
0.54
|
-
|
-
|
0.54
|
-
|
|
|
|
|
|
|
|
Production
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oxide
concentrate
|
tonnes
|
47,347
|
33,768
|
10,324
|
81,115
|
21,592
|
Sulphide
concentrate
|
tonnes
|
18,172
|
26,682
|
5,780
|
44,854
|
12,194
|
Total concentrate
produced
|
tonnes
|
65,519
|
60,450
|
16,104
|
125,969
|
33,786
|
Cu grade in
concentrate
|
%
|
18.56
|
16.39
|
14.96
|
17.52
|
14.44
|
Co grade in
concentrate
|
%
|
1.38
|
0.95
|
0.89
|
1.17
|
0.96
|
|
|
|
|
|
|
|
Oxide feed
received at Luilu
|
tonnes
|
1,020,106
|
819,200
|
-
|
1,839,306
|
-
|
Cu grade in oxide
feed
|
%
|
2.98
|
3.06
|
-
|
3.02
|
-
|
|
|
|
|
|
|
|
Total contained
copper
|
tonnes
|
42,612
|
34,996
|
2,396
|
77,608
|
4,880
|
Total material milled increased to 1,970,359 tonnes in Q2 2018
from 1,624,655 tonnes in Q1 2018. Total material milled increased
to 3,595,014 tonnes in H1 2018 from 690,608 tonnes in H1 2017.
Total concentrate produced increased to 65,519 tonnes in Q2 2018
from 60,450 tonnes in Q1 2018. Total concentrate produced increased
to 125,969 tonnes in H1 2018 from 33,786 tonnes in H1 2017.
Total oxide feed received at Luilu increased to 1,020,106 tonnes
in Q2 2018 from 819,200 tonnes in Q1 2018. Total oxide feed
received at Luilu increased to 1,839,306 tonnes in H1 2018 from nil
tonnes in H1 2017.
Total contained copper in concentrate and oxide feed produced
increased to 42,612 tonnes in Q2 2018 from 34,996 tonnes in Q1
2018. Total contained copper in concentrate and oxide feed produced
increased to 77,608 tonnes in H1 2018 from 4,880 tonnes in H1
2017.
The increase in total material milled, concentrate and oxide
feed received at Luilu and total contained copper in concentrate
and oxide feed in Q2 2018 compared to Q1 2018 and H1 2018 compared
to H1 2017 reflects the resumption of production in December 2017 following the completion of phase 1
of the WOL Project. Processing activities were largely suspended
during the comparative periods in 2017. The increases for the year
to date have been achieved by:
- increasing the capacity of the hydro mining station to treat
KITD material at 500 tonnes per hour;
- an increase in total ore availability, in line with the
optimized mine plan, to ensure sufficient ore availability for the
WOL Project; and
- re-commissioning of two additional cascade mills to support
increased sulphide material throughputs as well as the sulphide
floatation circuit comprising of tank cells and two banks of Wemco
cleaner cells.
Luilu metallurgical plant
|
|
Three months
ended
|
Six months
ended
|
|
|
Jun
30,
2018
|
Mar 31,
2018
|
Jun 30,
2017
|
Jun
30,
2018
|
Jun 30,
2017
|
WOL feed – oxide
concentrate*
|
tonnes
|
83,676
|
86,445
|
-
|
170,121
|
-
|
WOL feed – oxide
feed
|
tonnes
|
1,020,106
|
819,200
|
-
|
1,839,306
|
-
|
Total oxide
feed
|
tonnes
|
1,103,782
|
905,645
|
-
|
2,009,427
|
-
|
|
|
|
|
|
|
|
Total oxide Cu
grade
|
%
|
3.75
|
4.04
|
-
|
3.88
|
-
|
Total oxide Co
grade
|
%
|
0.41
|
0.55
|
-
|
0.47
|
-
|
|
|
|
|
|
|
|
Sulphide roaster
feed
|
tonnes
|
5,823
|
-
|
-
|
5,823
|
-
|
|
|
|
|
|
|
|
Sulphide Cu
grade
|
%
|
33.78
|
-
|
-
|
33.78
|
-
|
Sulphide Co
grade
|
%
|
4.02
|
-
|
-
|
4.02
|
-
|
|
|
|
|
|
|
|
Production
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper
cathode
|
tonnes
|
35,615
|
27,677
|
-
|
63,292
|
-
|
Cobalt contained
in hydroxide
|
tonnes
|
2,429
|
525
|
-
|
2,954
|
-
|
*consists of amounts
produced at KTC during comparable periods plus inventory
drawdown.
|
Total copper cathode increased to 35,615 tonnes in Q2 2018 from
27,677 tonnes in Q1 2018. Total copper cathode increased to 63,292
tonnes in H1 2018 from nil tonnes in H1 2017.
Total cobalt contained in hydroxide increased to 2,429 tonnes in
Q2 2018 from 525 tonnes in Q1 2018. Total cobalt contained in
hydroxide increased to 2,954 tonnes in H1 2018 from nil tonnes in
H1 2017.
The increase in copper cathode and cobalt contained in hydroxide
in Q2 2018 compared to Q1 2018 and H1 2018 compared to 2017
reflects the resumption of production in December 2017 following the completion of phase 1
of the WOL Project. Processing activities were largely suspended
during the comparative periods in 2017. The increases for the year
to date have been achieved by:
- increasing total oxide feed to be leached in line with the
ramp-up of operations;
- re-commissioning of the sulphide receiving circuit which
comprise the thickeners and receiving tanks, roaster 5 and its
associated auxiliary equipment and electro-winning 2; and
- commissioning of a low grade solvent extraction circuit,
counter current decantation and the cobalt purification plant with
the associated utility plants.
Major projects update
WOL Project
The WOL Project includes the construction of optimized copper
and cobalt circuits intended to reliably produce up to 300,000 tpa
of copper cathode over the life of the mine. This is achieved by
adding additional leach capacity at Luilu in order to leach
run-of-mine oxide ore directly rather than concentrating the oxide
ore at KTC.
Q2 2018 update
- Construction has continued on phase 2 of the WOL Project.
Progress was made on the high-grade clarifier, receiving thickener
and the post-leach clarifier for copper production; and
- the core copper circuit of train 2 is expected to be completed
and commissioned during Q3 2018. The final components of the WOL
Project being the train 2 CCD wash circuits and electro-winning
tank house are scheduled for completion and commissioning by Q4
2018.
Cobalt Projects
The objective of the cobalt projects is to upgrade the existing
cobalt plant design in order to reduce the bottlenecks and increase
production capacity up to 40,000 tpa of cobalt contained in
hydroxide by modification to the precipitation, thickening and
filtration and drying and bagging processes. The improvements being
made as part of the cobalt projects will integrate with the
existing WOL processing facilities at Luilu.
Q2 2018 update
- Demolition works have been completed to facilitate future
construction, civil and earth works are underway in line with the
project schedule and long lead items have been ordered; and
- Estimated completion for the cobalt projects is Q1 2019.
Acid Plant
In Q4 2017, the Board of Katanga approved a US$237 million capital expenditure spread over
2018 and 2019 to construct a sulphuric acid and sulphur dioxide
production plant at KCC, which will improve the reliability of the
supply of these reagents to the WOL processing circuits.
Q2 2018 update
- In addition to a continuation of design work on the Acid Plant,
preliminary earth works have commenced and orders for major long
lead items have been placed.
The Company expects to release its second quarter 2018 financial
results on or about August 7,
2018.
Outlook
2018 full year guidance remains for 150kt of copper and 11kt of
cobalt production.
Qualified Person
Tahir Usmani, PEng, APEGA, Chief
Mine Planning Engineer of KCC, has reviewed and approved the
scientific and technical disclosure in this news release. Mr.
Usmani is a "qualified person" for the purposes of NI 43-101 -
Standards of Disclosure for Mineral Projects.
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. 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.
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. 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