ZUG, Switzerland, Jan. 31, 2019 /CNW/ - Katanga Mining
Limited (TSX: KAT) ("Katanga" or the "Company") today
provides an update on its major projects and announces its 2018
fourth quarter and year-end production results.
Major projects update
Q4 2018 WOL Project Update
During Q4 2018, the final components of Phase 2 of the whole-ore
leach project ("WOL Project"), being the remaining counter-current
decantation ("CCD") circuit and the electro-winning tankhouse
("EW") were commissioned.
The WOL Project includes the construction of copper and cobalt
circuits intended to reliably produce up to 300,000tpa of copper
cathode over the life of the mine. This is achieved by adding leach
capacity at Luilu in order to leach run-of-mine oxide ore directly
rather than concentrating the oxide ore at KTC. Notwithstanding
this target capacity, production in any given year will fluctuate
as a function of numerous factors, including availability and
utilization of the plant, geological and mining conditions,
logistics, availability of reagents, availability of electricity,
macro-economic factors such as commodity prices, input costs and
geopolitical developments (including with respect to the new DRC
Mining Code).
Q4 2018 Cobalt Projects Update
The cobalt debottlenecking project is progressing on schedule.
The three new filter presses, an MgO reagent plant within the
existing cobalt circuit and the construction of two cobalt
hydroxide dryers are scheduled for completion and commissioning
during Q1 2019.
The objective of the cobalt project is to upgrade the existing
cobalt plant design to reduce the bottlenecks and align the
life-of-mine cobalt production plan of 30,000tpa on average and
40,000tpa maximum capacity. This is accomplished by modifications
to the precipitation, thickening, filtration, drying and bagging
processes. Notwithstanding this target capacity, production in any
given year will fluctuate as a function of numerous factors,
including availability and utilization of the plant, geological and
mining conditions, logistics, availability of reagents,
availability of electricity, macro-economic factors such as
commodity prices, input costs and geopolitical developments
(including with respect to the new DRC Mining Code).
Q4 2018 Acid Plant Update
The Acid Plant is a sulphuric acid and sulphur dioxide
production plant at KCC, (the "Acid Plant"), which is intended to
improve the reliability of the supply of these reagents to the WOL
Project processing circuits. In addition to a continuation of
detailed design work on the Acid Plant, earthworks were completed,
civil works are progressing and orders for long lead items continue
to arrive on site. Commissioning of the Acid Plant is expected to
commence in Q4 2019.
Production highlights during the three months and year ended
December 31, 2018, and
outlook
Copper and Cobalt Production
Copper cathode production increased to 49,770 tonnes in Q4 2018
from 39,296 tonnes in Q3 2018. Copper cathode production increased
to 152,358 tonnes in 2018 from 2,196 tonnes in 2017.
Cobalt contained in hydroxide produced increased to 4,646 tonnes
in Q4 2018 from 3,512 tonnes in Q3 2018. Cobalt contained in
hydroxide produced increased to 11,112 tonnes in 2018 from nil
tonnes in 2017.
The increase in copper cathode and cobalt contained in hydroxide
produced in both periods is related to the ongoing ramp-up of
production and the commissioning and re-commissioning of related
assets.
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. The low
levels of radioactivity detected in the uranium to date do not
present a health and safety risk.
While the Company is working with its partner Gécamines on a
long-term technical solution in the form of constructing an ion
exchange plant, and a feasibility study including the design of
such plant is being completed, the Company has been working on
various alternative interim solutions, both operational and
regulatory, to recommence exports.
On January 30, 2019, the Company's
75% operating subsidiary Kamoto Copper Company ("KCC") received a
letter from the DRC Minister of Mines following the inspection
conducted by the DRC Government in Q4 2018. The Minister of Mines
raised certain concerns with the technical solutions identified by
KCC and requested that KCC suspend the project to build an ion
exchange plant until further notice. KCC intends to engage with the
Ministry of Mines to understand and address their
concerns.
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
commissioning of the ion exchange plant is expected to commence in
Q4 2019. Annual cobalt production guidance for FY2019 remains
unchanged at 26kt[1], however sales of the
FY2019 cobalt production are now expected mostly to be recognized
in FY2020.
Mining
|
|
Three months
ended
|
Twelve months
ended
|
|
|
Dec
31,
|
Sep 30,
|
Dec 31,
|
Dec
31,
|
Dec 31,
|
|
|
2018
|
2018
|
2017
|
2018
|
2017
|
Ore
mined*/**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KOV open
pit
|
tonnes
|
1,465,641
|
2,343,785
|
433,169
|
6,479,571
|
433,169
|
Mashamba East open
pit
|
tonnes
|
851,968
|
953,909
|
-
|
3,318,476
|
-
|
Total open
pits
|
tonnes
|
2,317,609
|
3,297,694
|
433,169
|
9,798,047
|
433,169
|
|
|
|
|
|
|
|
KTO
underground
|
tonnes
|
154,022
|
141,973
|
-
|
369,680
|
-
|
Total ore
mined
|
tonnes
|
2,471,631
|
3,439,667
|
433,169
|
10,167,727
|
433,169
|
|
|
|
|
|
|
|
Waste mined and
primary development*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KOV open
pit
|
tonnes
|
8,057,522
|
8,369,083
|
7,045,278
|
29,757,641
|
31,571,164
|
Mashamba East open
pit
|
tonnes
|
5,777,914
|
6,996,303
|
4,147,881
|
21,224,044
|
13,710,246
|
Total open
pits
|
tonnes
|
13,835,436
|
15,365,386
|
11,193,159
|
50,981,685
|
45,281,410
|
|
|
|
|
|
|
|
KTO
underground primary
development
|
meters
|
151
|
126
|
-
|
1,127
|
-
|
Total waste
mined***
|
tonnes
|
13,835,436
|
15,365,386
|
11,193,159
|
50,981,685
|
45,281,410
|
|
|
|
|
|
|
|
Total material
mined
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KOV open
pit
|
tonnes
|
9,523,163
|
10,712,868
|
7,478,447
|
36,237,212
|
32,004,333
|
Mashamba East open
pit
|
tonnes
|
6,629,882
|
7,950,212
|
4,147,881
|
24,542,520
|
13,710,246
|
Total open
pits
|
tonnes
|
16,153,045
|
18,663,080
|
11,626,328
|
60,779,732
|
45,714,579
|
|
|
|
|
|
|
|
KTO
underground
|
tonnes
|
154,022
|
141,973
|
-
|
369,680
|
|
Total material
mined***
|
tonnes
|
16,307,067
|
18,805,053
|
11,626,328
|
61,149,412
|
45,714,579
|
|
|
|
|
|
|
|
Total contained
copper
|
tonnes
|
61,393
|
69,643
|
9,459
|
218,147
|
9,459
|
|
|
|
|
|
|
|
Ore
summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total primary ore
mined
|
tonnes
|
1,648,105
|
1,655,605
|
291,947
|
5,322,494
|
291,947
|
Average Cu
grade
|
%
|
3.28
|
3.48
|
2.92
|
3.49
|
2.92
|
Average Co
grade
|
%
|
0.41
|
0.51
|
0.57
|
0.46
|
0.57
|
|
|
|
|
|
|
|
Total low-grade ore
mined
|
tonnes
|
616,436
|
789,380
|
85,875
|
2,299,703
|
85,875
|
Average Cu
grade
|
%
|
1.04
|
0.97
|
0.88
|
1.01
|
0.88
|
Average Co
grade
|
%
|
0.18
|
0.21
|
0.20
|
0.20
|
0.20
|
|
|
|
|
|
|
|
Total cobalt ore
mined
|
tonnes
|
207,090
|
994,682
|
55,347
|
2,545,530
|
55,347
|
Average Co
grade
|
%
|
0.58
|
0.57
|
0.32
|
0.59
|
0.32
|
Average Cu
grade
|
%
|
0.42
|
0.44
|
0.43
|
0.36
|
0.43
|
Total ore
mined
|
tonnes
|
2,471,631
|
3,439,667
|
433,169
|
10,167,727
|
433,169
|
|
|
|
|
|
|
|
Average Cu
grade
|
%
|
2.48
|
2.02
|
2.18
|
2.15
|
2.18
|
Average Co
grade
|
%
|
0.37
|
0.46
|
0.48
|
0.43
|
0.48
|
* 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
|
Rounding of tonnes
and grades may result in apparent summation differences between
tonnes, grades and contained metal content
|
Total ore mined decreased to 2,471,632 tonnes in Q4 2018 from
3,439,667 tonnes in Q3 2018. Total ore mined increased to
10,167,727 tonnes in 2018 from 433,169 tonnes in 2017.
Total waste mined decreased to 13,835,436 tonnes in Q4 2018 from
15,365,386 tonnes in Q3 2018. Total waste mined increased to
50,981,685 tonnes in 2018 from 45,281,410 tonnes in 2017.
Total contained copper decreased to 61,393 tonnes in Q4 2018
from 69,643 tonnes in Q3 2018. Total contained copper increased to
218,147 tonnes in 2018 from 9,459 tonnes in 2017.
The decrease in total material mined in the combined open pits
in Q4 2018 compared to Q3 2018 reflects the commencement of the
rainy season.
The increase in total material mined in the KTO underground in
Q4 2018 compared to Q3 2018 relates to the increase in secondary
development as well as the continuation of primary development. KTO
underground productivity has been supported by the re-commissioning
in Q4 2018 of:
- one Atlas Copco ST1030 loader for increased underground loading
capacity; and
- one Atlas Copco 282 boomer for development.
The decrease in total contained copper in Q4 2018 compared to Q3
2018 is driven by the decrease in total ore mined, offset by a
higher average copper grade, in line with the optimized mine
plan.
The ongoing mining and stockpiling of very low-grade ore and
cobalt ore reflects the optimization of the long-term feed
strategy. As a result of this strategy, low-grade ore, below
budgeted feed grades and cobalt ore are currently being stockpiled
for future feed into the processing plant.
Kamoto concentrator ("KTC")
|
|
Three months
ended
|
Twelve months
ended
|
|
|
Dec
31,
2018
|
Sep 30,
2018
|
Dec 31,
2017
|
Dec
31,
2018
|
Dec 31,
2017
|
Total material
milled and processed
|
tonnes
|
2,482,663
|
1,944,616
|
644,829
|
7,529,596
|
1,922,101
|
|
|
|
|
|
|
|
KITD material
processed
|
tonnes
|
726,206
|
620,909
|
481,618
|
2,483,170
|
1,758,890
|
Cu grade in
ore
|
%
|
1.55
|
1.63
|
1.67
|
1.57
|
1.30
|
Co grade in
ore
|
%
|
0.18
|
0.18
|
0.20
|
0.18
|
0.17
|
|
|
|
|
|
|
|
Open pit ore
milled
|
tonnes
|
1,600,911
|
1,178,617
|
163,211
|
4,703,020
|
163,211
|
Cu grade in
ore
|
%
|
3.18
|
3.26
|
4.05
|
3.43
|
4.05
|
Co grade in
ore
|
%
|
0.42
|
0.47
|
0.62
|
0.45
|
0.62
|
|
|
|
|
|
|
|
Underground ore
milled
|
tonnes
|
155,546
|
145,090
|
-
|
343,406
|
-
|
Cu grade in
ore
|
%
|
3.40
|
3.28
|
-
|
3.34
|
-
|
Co grade in
ore
|
%
|
0.65
|
0.65
|
-
|
0.63
|
-
|
|
|
|
|
|
|
|
Production
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oxide
concentrate
|
tonnes
|
35,752
|
21,621
|
22,268
|
107,094
|
65,383
|
Sulphide
concentrate
|
tonnes
|
30,026
|
27,501
|
10,270
|
98,488
|
30,432
|
Total concentrate
produced
|
tonnes
|
65,778
|
49,122
|
32,538
|
205,582
|
95,815
|
Cu grade in
concentrate
|
%
|
20.77
|
24.37
|
18.33
|
20.19
|
16.51
|
Co grade in
concentrate
|
%
|
2.68
|
2.96
|
1.44
|
2.10
|
1.18
|
|
|
|
|
|
|
|
Oxide feed
received at Luilu
|
tonnes
|
1,602,666
|
1,195,149
|
126,471
|
4,666,773
|
126,471
|
Cu grade in oxide
feed
|
%
|
2.86
|
2.99
|
3.58
|
3.02
|
3.58
|
|
|
|
|
|
|
|
Total contained
copper
|
tonnes
|
59,527
|
47,660
|
10,489
|
182,570
|
20,340
|
Rounding of tonnes
and grades may result in apparent summation differences between
tonnes, grades and contained metal content
|
Total material milled and processed increased to 2,482,663
tonnes in Q4 2018 from 1,944,616 tonnes in Q3 2018. Total material
milled and processed increased to 7,529,596 tonnes in 2018 from
1,922,101 tonnes in 2017.
Total concentrate produced increased to 65,778 tonnes in Q4 2018
from 49,122 tonnes in Q3 2018. Total concentrate produced increased
to 205,582 tonnes in 2018 from 95,815 tonnes in 2017.
Total oxide feed received at Luilu increased to 1,602,666 tonnes
in Q4 2018 from 1,195,149 tonnes in Q3 2018. Total oxide feed
received at Luilu increased to 4,666,773 tonnes in 2018 from
126,471 tonnes in 2017.
Total contained copper in concentrate and oxide feed produced
increased to 59,527 tonnes in Q4 2018 from 47,660 tonnes in Q3
2018. Total contained copper in concentrate and oxide feed received
at Luilu increased to 182,570 tonnes in 2018 from 20,340 tonnes in
2017.
The increase in total material milled and processed in Q4 2018
compared to Q3 2018 is driven by the increase in milling capacity
from the commissioning of CM6 and CM7. The increase in total
material milled and processed in 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 increase in total material milled and processed, concentrate
produced, oxide feed received at Luilu and total contained copper
in 2018 compared to 2017 has been achieved by the optimization and
ramp-up of the current milling capacity in line with the WOL
Project commissioning plan.
Luilu metallurgical plant
|
|
Three months
ended
|
Twelve months
ended
|
|
|
Dec
31,
2018
|
Sep 30,
2018
|
Dec 31,
2017
|
Dec
31,
2018
|
Dec 31,
2017
|
WOL feed – oxide
concentrate*
|
tonnes
|
35,752
|
22,096
|
13,755
|
198,317
|
13,755
|
WOL feed – oxide
feed
|
tonnes
|
1,602,666
|
1,195,149
|
126,471
|
4,666,773
|
126,471
|
Total oxide
feed
|
tonnes
|
1,638,418
|
1,217,245
|
140,226
|
4,865,090
|
140,226
|
|
|
|
|
|
|
|
Total oxide Cu
grade
|
%
|
3.07
|
3.20
|
4.45
|
3.44
|
4.45
|
Total oxide Co
grade
|
%
|
0.43
|
0.44
|
0.65
|
0.45
|
0.65
|
|
|
|
|
|
|
|
Sulphide roaster
feed
|
tonnes
|
25,588
|
26,688
|
-
|
58,099
|
-
|
|
|
|
|
|
|
|
Sulphide Cu
grade
|
%
|
27.27
|
29.98
|
-
|
29.17
|
-
|
Sulphide Co
grade
|
%
|
3.86
|
4.22
|
-
|
4.04
|
-
|
|
|
|
|
|
|
|
Production
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper
cathode
|
tonnes
|
49,770
|
39,296
|
2,196
|
152,358
|
2,196
|
Cobalt contained
in hydroxide
|
tonnes
|
4,646
|
3,512
|
-
|
11,112
|
-
|
*consists of amounts
produced at KTC during previous periods plus inventory
drawdown
|
Rounding of tonnes
and grades may result in apparent summation differences between
tonnes, grades and contained metal content
|
Total copper cathode produced increased to 49,770 tonnes in Q4
2018 from 39,296 tonnes in Q3 2018. Total copper cathode produced
increased to 152,358 tonnes in 2018 from 2,196 tonnes in 2017.
Total cobalt contained in hydroxide increased to 4,646 tonnes in
Q4 2018 from 3,512 tonnes in Q3 2018. Total cobalt contained in
hydroxide increased to 11,112 tonnes in 2018 from nil tonnes in
2017.
The increase in copper cathode and cobalt contained in hydroxide
produced in Q4 2018 compared to Q3 2018 is driven by the increase
in total oxide feed, which has been supported by the commissioning
of additional electro-winning capacity.
The increase in copper cathode and cobalt contained in hydroxide
produced in 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 in 2018 compared to 2017 have been achieved by:
- commissioning of the second train of the WOL Project and both
CCD circuits;
- commissioning of the second high-grade solvent extraction train
and the low-grade circuit, the cobalt purification plant and the
associated utility plants;
- re-commissioning of the sulphide receiving circuit which
consists of thickeners and receiving tanks, roaster 5 and its
associated auxiliary equipment;
- increasing total sulphide feed to be roasted and leached in
line with the ramp-up of operations for Phase 2 of the WOL Project
commissioning plan;
- re-commissioning of EW 2 and EW 3; and
- completion and commissioning of EW 4.
Outlook
2019 full year production guidance is 285kt of copper cathode
and 26kt of cobalt contained in hydroxide.
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. The key assumptions that have
been made in connection with the forward-looking statements include
the following: the operations of the Company during the ramp up of
production following the commissioning of the Whole Ore Leach
("WOL") Project remaining consistent with 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 Annual Information Form of the
Company for the year ended December 31,
2017 dated April 2, 2018);
that new equipment performs to expectations; the exchange rate
between the US dollar, South African rand, British pound, 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 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 actual results of current exploration activities;
conclusions of economic evaluations; changes in project parameters
as plans continue to be refined; future prices of copper and
cobalt; 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 the Annual Information Form for the year ended
December 31, 2017 dated April 2, 2018 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.
[1] Annual cobalt production guidance subject to +/-
2kt variation
SOURCE Katanga Mining Limited