ZUG, Switzerland, Nov. 16, 2018 /CNW/ - Katanga Mining
Limited (TSX: KAT) ("Katanga" or the
"Company") today announces that the previously disclosed
internal instruction of the Direction Générale des Douanes et
Accises ("DGDA") in the Democratic
Republic of the Congo temporarily preventing the Company's
75% owned subsidiary, Kamoto Copper Company SA ("KCC"), from
importing or exporting any material or production has been lifted
and that imports and exports of material and production have
resumed. As previously disclosed, the DGDA issued an internal
instruction on November 9, 2018,
temporarily preventing the KCC from importing or exporting any
material or production, including copper production, as a result of
KCC's alleged failure to declare and pay duties on the export of at
least 6,650 tons of copper in December
2014 and January 2015.
The dispute with the DGDA arose as a result of the Company's
previously disclosed overstatement of copper cathode production by
6,650 tonnes in December, 2014. This overstated cathode production
was provisionally invoiced in the amount of $43 million on December
31, 2014. However, as disclosed in the Company's restated
consolidated financial statements for the years ended December 31, 2016 and 2015, the overstated
cathode production and the provisional invoicing of $43 million were eliminated from the restated
financial statements.
Although the 6,650 tonnes of copper cathode at issue were not
produced by KCC in 2014 or exported in 2015, the DGDA continues to
claim that KCC failed to pay export duties on the export of these
copper lots. Although the temporary suspension of imports and
exports has been lifted, the DGDA is proposing to levy export
duties and penalties on KCC. The validity and quantum of the DGDA's
proposed export duties and penalties remains in dispute. Given that
the copper cathode production at issue did not exist and that the
copper lots were not exported, KCC intends to continue vigorously
contesting any export duties or penalties on the overstated (not
produced and not sold) copper cathodes.
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
The temporary suspension of the imports and exports of KCC
had no significant impact on the production and the financial
situation of the Company. KCC has continued mining, and has
sufficient stocks and consumables to operate normally for several
days in the event of border closure, congestion or administrative
suspension of imports and exports. Should the dispute with DGDA not
be resolved in the future, the DGDA may impose another
administrative suspension of imports and exports against KCC. Any
such suspension is not expected to trigger an immediate impact on
the production of the Company. Any future announcements regarding
any such suspensions will only be made if this has or is
anticipated to have a material impact on the Company.
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