ZUG, Switzerland, April 29, 2019 /CNW/ - Katanga Mining Limited
(TSX: KAT) ("Katanga" or the "Company") today announces its 2019
first quarter production results.
Major projects update
Q1 2019 WOL Project Update
The WOL project includes the construction of optimized copper
and cobalt circuits with an average annual production of 300,000
tpa of copper cathode over life of mine (as described in the
Company's technical report filed on SEDAR on April 2, 2018). 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 the
Kamoto concentrator "KTC".
Q1 2019 Cobalt Projects Update
The cobalt debottlenecking projects (the "Cobalt Projects") are
expected to be completed during Q2 2019. Dry commissioning of two
of the three filter presses has completed. The third filter press
commissioning is awaiting arrival of the supplier commissioning
team during the next planned maintenance shut-down, scheduled for
May 2019. The MgO plant commissioning
is complete. Commissioning of the first and second cobalt dryers
has commenced, with expected completion during Q2 2019.
The objective of the Cobalt Projects is to upgrade the existing
cobalt plant design in order to reduce bottlenecks by modification
of the precipitation, thickening & filtration and drying &
bagging processes. This will align the design of the plant with the
average life-of-mine cobalt production plan of 30,000 tonnes per
annum. These improvements will integrate with the existing WOL
processing facilities at Luilu.
Q1 2019 Acid Plant Update
The acid plant (the "Acid Plant") is a sulphuric acid, sulphur
dioxide production plant and steam turbine generator at KCC that is
intended to improve the reliability of the supply of these reagents
to the WOL project processing circuits and provide additional power
for use in the WOL plant. In addition to a continuation of design
work on the Acid Plant, major earthworks are complete, civil works
are progressing and deliveries of major long lead items continue to
arrive on site. Commissioning of the Acid Plant is expected to
commence at the end of 2019.
Production highlights during the three months ended
March 31, 2019, and cobalt
update
Copper and Cobalt Production
Copper cathode increased to 57,175 tonnes in Q1 2019 from 49,770
tonnes in Q4 2018.
Cobalt contained in hydroxide decreased to 3,511 tonnes in Q1
2019 from 4,646 tonnes in Q4 2018.
In Q4 2018, the Company announced that its 75%-owned DRC
subsidiary Kamoto Copper Company ("KCC") had temporarily suspended
the export and sale of cobalt due to the presence of uranium
detected in the cobalt hydroxide at levels that exceed the
acceptable limit allowed for export of the product through main
African ports to customers. The low levels of radioactivity
detected in the uranium to date do not present a health and safety
risk. On April 25, 2019, KCC resumed
the export and sale of a limited quantity of cobalt that complies
with both international and local Democratic Republic of Congo ("DRC") transport
regulations with respect to the levels of uranium (the "Applicable
Regulations").
While KCC, together with the Company and KCC's 25% shareholder,
DRC state-owned La Générale des Carrières et des Mines
("Gécamines"), have been working with the DRC government's Ministry
of Mines and the Congolese Atomic Energy Agency (CGEA) on a
long-term technical solution in the form of an ion exchange plant
(the "Ion Exchange Plant"), KCC has also been exploring various
alternative interim solutions, both operational and regulatory,
resulting in the recommencement of the export and sale of a limited
quantity of cobalt.
Through interim operational solutions, KCC had produced, as at
March 31, 2019, approximately 930
tonnes of contained cobalt since January
2019 that complies with Applicable Regulations. This
represents approximately 22.5 percent of the total production of
contained cobalt since January 2019.
As previously disclosed and confirmed by the competent DRC
authorities, KCC has resumed the export of its cobalt hydroxide
complying with the Applicable Regulations and such resumption of
exports remains subject to the regular DRC export procedures, which
include the continued monitoring by CGEA and by the relevant mining
authorities.
Subject to (i) obtaining the necessary authorizations for the
Ion Exchange Plant and (ii) the completion of a feasibility study
including the detailed engineering design of such plant, the
construction is expected to commence in Q2 2019 and take
approximately 9 months. The purchase of long lead items in relation
to the Ion Exchange Plant has been approved by the boards of the
Company and KCC respectively.
Mining
|
|
Three months
ended
|
|
|
Mar 31,
2019
|
Dec 31,
2018
|
Mar 31,
2018
|
Ore
mined*/**
|
|
|
|
|
|
|
|
|
|
KOV open
pit
|
tonnes
|
1,082,137
|
1,465,641
|
775,393
|
Mashamba East open
pit
|
tonnes
|
1,086,595
|
851,968
|
626,808
|
Total open
pits
|
tonnes
|
2,168,732
|
2,317,609
|
1,402,201
|
|
|
|
|
|
KTO
underground
|
tonnes
|
139,305
|
154,022
|
-
|
Total ore
mined
|
tonnes
|
2,308,037
|
2,471,631
|
1,402,201
|
|
|
|
|
|
Waste mined and
primary development*
|
|
|
|
|
|
|
|
|
|
KOV open
pit
|
tonnes
|
7,282,726
|
8,057,522
|
6,030,880
|
Mashamba East open
pit
|
tonnes
|
2,977,252
|
5,777,914
|
3,308,558
|
Total open
pits
|
tonnes
|
10,259,978
|
13,835,436
|
9,339,438
|
|
|
|
|
|
KTO
underground
primary
development
|
meters
|
137
|
151
|
539
|
Total waste
mined***
|
tonnes
|
10,259,978
|
13,835,436
|
9,339,438
|
|
|
|
|
|
Total material
mined
|
|
|
|
|
|
|
|
|
|
KOV open
pit
|
tonnes
|
8,364,863
|
9,523,163
|
6,806,273
|
Mashamba East open
pit
|
tonnes
|
4,063,847
|
6,629,882
|
3,935,366
|
Total open
pits
|
tonnes
|
12,428,710
|
16,153,045
|
10,741,639
|
|
|
|
|
|
KTO
underground
|
tonnes
|
139,305
|
154,022
|
-
|
Total material
mined***
|
tonnes
|
12,568,015
|
16,307,067
|
10,741,639
|
|
|
|
|
|
Total contained
copper
|
tonnes
|
67,616
|
61,393
|
28,761
|
|
|
|
|
|
Ore
summary
|
|
|
|
|
|
|
|
|
|
Total primary ore
mined
|
tonnes
|
1,583,829
|
1,648,105
|
644,343
|
Average Cu
grade
|
%
|
3.87
|
3.28
|
3.92
|
Average Co
grade
|
%
|
0.38
|
0.41
|
0.55
|
|
|
|
|
|
Total low-grade ore
mined
|
tonnes
|
548,178
|
616,436
|
204,815
|
Average Cu
grade
|
%
|
0.96
|
1.04
|
1.08
|
Average Co
grade
|
%
|
0.20
|
0.18
|
0.22
|
|
|
|
|
|
Total cobalt ore
mined
|
tonnes
|
176,030
|
207,090
|
553,043
|
Average Co
grade
|
%
|
0.73
|
0.58
|
0.51
|
Average Cu
grade
|
%
|
0.57
|
0.42
|
0.23
|
Total ore
mined
|
tonnes
|
2,308,037
|
2,471,631
|
1,402,201
|
|
|
|
|
|
Average Cu
grade
|
%
|
2.93
|
2.48
|
2.05
|
Average Co
grade
|
%
|
0.37
|
0.37
|
0.49
|
|
|
*
|
These segments
include classification of ore volumes into different categories,
being primary copper containing ore, 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 is defined as
having a Cu grade of greater than 1.25%, the low-grade component is
defined as having a Cu grade between 0.65% and 1.25% and the cobalt
ore component is defined as having a Cu grade of less than 0.65%
and Co grade greater than 0.30%.
|
**
|
Excludes any ore
hydro-mined out of Kamoto Interim Tailings Dam (KITD) as this is
not a traditional mining operation, but instead, a hydro-mining
reclamation project.
|
***
|
Underground waste is
excluded.
|
Total ore mined decreased to 2,308,037 tonnes in Q1 2019 from
2,471,631 tonnes in Q4 2018.
Total waste mined decreased to 10,259,978 tonnes in Q1 2019 from
13,835,436 tonnes in Q4 2018.
Total contained copper increased to 67,616 tonnes in Q1 2019
from 61,393 tonnes in Q4 2018.
The decrease in total material mined in the combined open pits
in Q1 2019 compared to Q4 2018 reflects an increase in rainfall and
lower than planned shovel utilization.
The decrease in total ore mined in Q1 2019 compared to Q4 2018
was offset by a higher average copper grade, in line with the
optimized mine plan.
The ongoing mining and stockpiling of low-grade ore and cobalt
ore reflects the optimization of the long-term feed strategy. As a
result of this strategy, low-grade ore and cobalt ore are currently
being stockpiled for future feed into the processing plant.
Kamoto concentrator
|
|
Three months
ended
|
|
|
Mar 31,
2019
|
Dec 31,
2018
|
Mar 31,
2018
|
Total material
milled and processed
|
tonnes
|
2,707,115
|
2,482,663
|
1,398,995*
|
|
|
|
|
|
KITD material
processed
|
tonnes
|
747,327
|
726,206
|
520,323*
|
Cu grade in
ore
|
%
|
1.50
|
1.55
|
1.43
|
Co grade in
ore
|
%
|
0.18
|
0.18
|
0.17
|
|
|
|
|
|
Open pit ore
milled
|
tonnes
|
1,818,399
|
1,600,911
|
878,672
|
Cu grade in
ore
|
%
|
3.41
|
3.18
|
3.92
|
Co grade in
ore
|
%
|
0.37
|
0.42
|
0.55
|
|
|
|
|
|
Underground ore
milled
|
tonnes
|
141,388
|
155,546
|
-
|
Cu grade in
ore
|
%
|
3.64
|
3.40
|
-
|
Co grade in
ore
|
%
|
0.52
|
0.65
|
-
|
|
|
|
|
|
Production
|
|
|
|
|
|
|
|
|
|
Oxide
concentrate
|
tonnes
|
37,536
|
35,752
|
23,018*
|
Sulphide
concentrate
|
tonnes
|
29,750
|
30,026
|
24,991*
|
Total concentrate
produced
|
tonnes
|
67,286
|
65,778
|
48,009*
|
Cu grade in
concentrate
|
%
|
19.25
|
20.77
|
16.07*
|
Co grade in
concentrate
|
%
|
2.14
|
2.68
|
0.93*
|
|
|
|
|
|
Oxide feed
received at Luilu
|
tonnes
|
1,822,820
|
1,602,666
|
828,209*
|
Cu grade in oxide
feed
|
%
|
3.12
|
2.86
|
3.18*
|
|
|
|
|
|
Total contained
copper
|
tonnes
|
69,818
|
59,527
|
34,022*
|
|
|
*
|
KITD material
consists of a non-homogeneous combination of oxide and sulphide
tailings material deposited from the former concentration processes
at the KTC Concentrator that are hydro-mined for reprocessing in
the KTC Concentrator. A physical survey of the KITD deposit in Q3
2018 highlighted an updated measurement of the moisture content in
KITD material and, accordingly, lower total tonnes processed from
KITD YTD. This adjustment had no impact on the volumes of saleable
copper cathode produced and an immaterial impact on the financial
results of the Company.
|
Total material milled and processed increased to 2,707,115
tonnes in Q1 2019 from 2,482,663 tonnes in Q4 2018.
Total concentrate produced increased to 67,286 tonnes in Q1 2019
from 65,778 tonnes in Q4 2018.
Total oxide feed received at Luilu increased to 1,822,820 tonnes
in Q1 2019 from 1,602,666 tonnes in Q4 2018.
Total contained copper in concentrate and oxide feed produced
increased to 69,818 tonnes in Q1 2019 from 59,527 tonnes in Q4
2018.
The increase in total material milled and processed in Q1 2019
compared to Q4 2018 is driven by the increase in milling capacity
from the ramp-up and optimization of CM6 and CM7 following
commissioning at the end of 2018, as well as increased
availabilities and utilization of the CM5 oxide mill.
Luilu metallurgical plant
|
|
Three months
ended
|
|
|
Mar 31,
2019
|
Dec 31,
2018
|
Mar 31,
2018
|
WOL feed – oxide
concentrate*
|
tonnes
|
37,536
|
35,752
|
77,436
|
WOL feed – oxide
feed
|
tonnes
|
1,822,820
|
1,602,666
|
828,208
|
Total oxide
feed
|
tonnes
|
1,860,356
|
1,638,418
|
905,645
|
|
|
|
|
|
Total oxide Cu
grade
|
%
|
3.28
|
3.07
|
4.04
|
Total oxide Co
grade
|
%
|
0.37
|
0.43
|
0.55
|
|
|
|
|
|
Sulphide roaster
feed
|
tonnes
|
26,772
|
25,588
|
-
|
|
|
|
|
|
Sulphide Cu
grade
|
%
|
26.92
|
27.27
|
-
|
Sulphide Co
grade
|
%
|
3.06
|
3.86
|
-
|
|
|
|
|
|
Production
|
|
|
|
|
|
|
|
|
|
Copper
cathode
|
tonnes
|
57,175
|
49,770
|
27,677
|
Cobalt contained
in hydroxide
|
tonnes
|
3,511
|
4,646
|
525
|
|
|
*
|
consists of amounts
produced at KTC during comparable periods plus inventory
drawdown.
|
Total copper cathode produced increased to 57,175 tonnes in Q1
2019 from 49,770 tonnes in Q4 2018.
Total cobalt contained in hydroxide decreased to 3,511 tonnes in
Q1 2019 from 4,646 tonnes in Q4 2018.
The increase in the production of copper cathode is related to
the increase in total oxide feed received, driven by an increase in
milling capacity from the ramp-up and optimization of related
assets at KTC.
The decrease in the production of cobalt contained in hydroxide
is due to the reduced recovery of cobalt and lower than budgeted
feed rates, which was driven by the process of uranium
precipitation from the cobalt hydroxide solution, which sought to
remove excess levels of uranium until the expected commissioning of
the Ion Exchange Plant.
Outlook
Total copper cathode produced for Q1 2019 of 57,175 tonnes was
roughly in line with management's expectations of 59,600 tonnes. A
full and comprehensive business review ("Review") recently
commenced, targeting efficiency and recovery improvements, better
product quality realizations and significant cost reductions over
the remainder of 2019 and into 2020 with the objective of improving
Katanga's prospects. The Company now expects that 2019 production
of copper and cobalt will be lower than the previously provided
guidance of approximately 285,000 tonnes of copper and
approximately 26,000 tonnes of contained cobalt. Key current
priorities remain construction and completion of the Acid Plant,
Cobalt Projects and Ion Exchange Plant. During this important
project delivery period, as noted above, KCC will focus on
improvements in copper cathode grades, metal recoveries, overall
equipment availabilities and reduced spend. The Company intends to
update the market with revised guidance once the Review has been
completed, which is expected to be during Q3 2019.
Long term production of 300,000 tpa of copper cathode and 30,000
tpa of cobalt contained in hydroxide on average over life of
mine remains unchanged.
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 that the WOL project will perform to
management's expectations, the Cobalt Projects and Acid Plant will
be completed and perform to expectation, successful outcome of the
Review, availability and utilization of plant and equipment,
geological and mining conditions, logistics, availability of
reagents, availability of electricity, macro-economic factors such
as commodity prices, input costs and geopolitical developments
(including the new 2018 DRC Mining Code). 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