ZUG, Switzerland, Dec. 3, 2018 /CNW/ - Katanga Mining Limited
(TSX: KAT) ("Katanga" or the "Company") today
announces that it has successfully completed the hot commissioning
of Phase 2 of its whole ore leach ("WOL") processing
facility at its 75% owned subsidiary Kamoto Copper Company's
("KCC") copper and cobalt mine in Lualaba Province, DRC. The
commissioning of the pre-leach circuits is continuing as scheduled
and is expected to be completed by the end of 2018. A progressive
ramp-up of the facility is expected to follow with the objective of
achieving full capacity of the WOL plant by the end of Q1 2019.
Johnny Blizzard, Chief Executive
Officer of Katanga, commented: "We are very pleased to have entered
into the final phase of the commissioning of the WOL processing
plant project after three years of hard work. Following the
commissioning of Phase 1 last year, and the commissioning of Phase
2, we are already seeing the benefits of improved recoveries, more
predictable plant performance and looking forward to increasing
production. We also look forward to achieving our expected
production targets set for 2018 and ramping up to full production
capacity of the new plant by the end of Q1 2019. The experience
gained in 2018 on all fronts within KCC will have us well placed to
achieve the targets set for 2019 and beyond."
Separately, good progress is being made on the construction of
the cobalt debottlenecking project which comprises three new filter
presses and an MgO reagent plant within the existing cobalt circuit
and the construction of two cobalt hyroxide dryers. It is expected
that both upgrades will be commissioned and in full production by
the end of Q1 2019. This will align cobalt processing capacity with
the KCC life-of-mine cobalt production plan of 30,000 tonnes per
annum on average and 40,000 tonnes per annum maximum capacity.
The export of cobalt hydroxide by KCC remains suspended. As
previously announced, the current situation relates to the levels
of uranium contained in cobalt hydroxide produced by KCC. While a
long-term technical solution in the form of constructing an ion
exhange sytem is being reviewed, the Company intends to work with
its partner Gécamines to look at various alternative interim
solutions, both operational and regulatory, to recommence
exports.
With the completion of Phase 2 of the WOL plant and the
expected completion of the cobalt debottlenecking project in Q1
2019, the Company currently has the following production
expectations for the next three financial years:
Commodity
|
Units
|
|
Production
Guidance
|
|
|
FY 2018
|
FY 2019
|
FY 2020
|
FY 2021
|
Copper*
|
kt
|
150
|
285
|
285
|
285
|
Cobalt**
|
kt
|
11
|
26***
|
32
|
38
|
* Annual copper
production guidance subject to +/- 15 kt variation
|
** Annual cobalt
production guidance subject to +/- 2 kt variation
|
*** Revised 2019
cobalt production guidance is the consequence of the expected
cobalt plant ramp-up and the assumed cobalt recoveries based on
mine plan
|
Good progress is also being made on the sulphuric
acid and sulphur dioxide plant (the "Acid Plant"). The
earthworks for the Acid Plant have been completed, civil works have
commenced and orders for major long lead items are beginning to
arrive on site. Following a detailed process review, commissioning
of the Acid Plant is expected toward the latter part of Q4 2019
with first acid expected in Q1 2020.
This press release was prepared under the
supervision of Mr. Tahir Usmani,
P.Eng, APEGA, Chief Mine Planning Engineer of Katanga and a
"qualified person" as such term is defined in NI 43-101. Mr.
Tahir Usmani has reviewed and
approved the contents of this press release.
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 contains forward-looking statements, including statements
regarding: the expected timing for completion of the commissioning
of the pre-leach circuits for the WOL plant; the Company's
expectation that it will achieve production targets set for 2018
and ramp up to full production capacity of the WOL plant by the end
of Q1 2019; the Company's expections that the construction of the
cobalt debottlenecking plant will be commissioned and in full
production by the end of Q1 2019; the Company's intention to
construct an ion exchange system and to work with its partner
Gécamines to look at various alternative interim solutions, both
operational and regulatory, to recommence cobalt exports; the
Company's expectations regarding production for the next three
financial years; the expected timing for commissioning of the Acid
Plant; and other statements that are not historical facts. 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 WOL plant, the construction of the
cobalt debottlenecking plant and Acid Plant remaining on schedule
and within management's expectations, the construction of the ion
exchange system to remove uranium from cobalt produced at the
project remaining on schedule and within management's expectations
and that it will serve the purpose for which it is intended, 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, and
the Power Project (as defined in the Company's annual information
form for the year ended December 31,
2017 dated April 2, 2018); new
equipment performing to expectations; the exchange rate between the
US dollar, South African rand, British pound sterling, 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: 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; unforseen delays to the
construction of the cobalt debottlenecking plant, acid production
plant or ion exchange system; actual results of current exploration
activities; actual results and interpretation of current
reclamation activities; unforeseen delays or changes to 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 plant, Acid Plant or ion exchange system; 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