ZUG, Switzerland, July 30, 2019 /CNW/ - Katanga Mining Limited
(TSX: KAT) ("Katanga" or the "Company") today provides an update on
its major projects and announces its 2019 second quarter production
results and the appointment of a new director of the Company.
Update on Major Projects
June 2019 Cobalt Projects
Update
The Company's previously announced cobalt
debottlenecking projects (the "Cobalt Projects") are expected to be
completed and in full production during Q2 2020. The commissioning
of two filter presses was completed earlier in the year, while the
third filter press is expected to be completed in Q3 2019. The
commissioning of the MgO plant was completed in the first half of
2019.
The objective of the Cobalt Projects is to upgrade the existing
cobalt plant in order to reduce bottlenecks by modification of the
precipitation, thickening, filtration, drying and bagging
processes. This will align the capacity of the cobalt plant with
the average planned life-of-mine cobalt production of 30,000 tonnes
per annum. Following these improvements, the cobalt circuit will be
fully integrated with the existing whole-ore-leach processing
facilities at the Luilu metallurgical plant.
At the end of Q2 2019 and in July
2019, the recently commissioned cobalt dryers suffered
mechanical breakdowns, which has prevented the Company from drying
cobalt hydroxide until the expected completion of repairs to the
dryers in Q4 2019.
June 2019 Acid Plant
Update
The Company's sulphuric acid, sulphur dioxide
production plant and steam turbine generator project (the "Acid
Plant"), continues to progress in accordance with the latest
construction plan. Final design items and minor procurement items
will be finalized in Q3 2019, and all critical civil works have now
been completed for Phase 1 of the Acid Plant. Structural,
mechanical, plate work and piping installation are in accordance
with the plan. All major long lead items have arrived on site and
are being installed. Commissioning of the Acid Plant is scheduled
to commence in the first half of 2020.
Production highlights during the six months ended
June 30, 2019 and Cobalt
Update
Copper and Cobalt Production
Copper cathode production
decreased to 52,514 tonnes in Q2 2019 from 57,175 tonnes in Q1
2019.
Cobalt contained in hydroxide production decreased to
2,607 tonnes in Q2 2019 from 3,511 tonnes in Q1 2019.
As previously announced in Q4 2018, the Company's 75%-owned
subsidiary Kamoto Copper Company ("KCC") 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. 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"). An aggregate of 97% of the cobalt
hydroxide produced in Q2 2019 (30% in Q1 2019) complied with
international transport regulations and was also below the
acceptable limit of contained uranium allowed for export through
main African ports.
KCC, together with the Company and KCC's 25% shareholder, DRC
state-owned La Générale des Carrières et des Mines ("Gécamines"),
has been working with the DRC government's Ministry of Mines and
the Congolese Atomic Energy Agency on a long-term technical
solution in the form of an ion exchange plant (the "Ion Exchange
Plant"). KCC has also implemented various alternative interim
solutions, both operational and regulatory, resulting in the
recommencement of the export and sale of a limited quantity of
cobalt.
Subject to obtaining the necessary authorizations for the Ion
Exchange Plant, the plant is expected to be commissioned in Q2
2020. The Ion Exchange Plant project has been approved by the
boards of the Company and KCC.
Refer to Luilu Metallurgical Plant update below.
Mining
|
|
Three months
ended
|
Six months
ended
|
|
|
Jun
30,
|
Mar 31,
|
Jun 30,
|
Jun
30,
|
Jun 30,
|
|
|
2019
|
2019
|
2018
|
2019
|
2018
|
Ore
mined*/**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KOV open
pit
|
tonnes
|
981,529
|
1,082,137
|
1,894,752
|
2,063,666
|
2,670,145
|
Mashamba East open
pit
|
tonnes
|
1,334,862
|
1,086,595
|
885,791
|
2,421,457
|
1,512,599
|
Total open
pits
|
tonnes
|
2,316,391
|
2,168,732
|
2,780,543
|
4,485,123
|
4,182,744
|
|
|
|
|
|
|
|
KTO
underground
|
tonnes
|
142,131
|
139,305
|
73,685
|
281,436
|
73,685
|
Total ore
mined
|
tonnes
|
2,458,522
|
2,308,037
|
2,854,228
|
4,766,559
|
4,256,429
|
|
|
|
|
|
|
|
Waste mined and
primary development*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KOV open
pit
|
tonnes
|
8,891,254
|
7,282,726
|
7,300,157
|
16,173,980
|
13,331,037
|
Mashamba East open
pit
|
tonnes
|
4,769,012
|
2,977,252
|
5,141,270
|
7,746,264
|
8,449,828
|
Total open
pits
|
tonnes
|
13,660,266
|
10,259,978
|
12,441,427
|
23,920,244
|
21,780,865
|
|
|
|
|
|
|
|
KTO
underground
primary
development
|
meters
|
-
|
137
|
43,393
|
137
|
83,209
|
Total waste
mined***
|
tonnes
|
13,660,226
|
10,259,978
|
12,484,820
|
23,920,244
|
21,864,074
|
|
|
|
|
|
|
|
Total material
mined
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KOV open
pit
|
tonnes
|
9,872,783
|
8,364,863
|
9,194,909
|
18,237,646
|
16,001,182
|
Mashamba East open
pit
|
tonnes
|
6,103,874
|
4,063,847
|
6,027,061
|
10,167,721
|
9,962,427
|
Total open
pits
|
tonnes
|
15,976,657
|
12,428,710
|
15,221,970
|
28,405,367
|
25,963,609
|
|
|
|
|
|
|
|
KTO
underground
|
tonnes
|
142,131
|
139,305
|
117,078
|
281,436
|
156,894
|
Total material
mined***
|
tonnes
|
16,118,788
|
12,568,015
|
15,339,048
|
28,686,803
|
26,120,503
|
|
|
|
|
|
|
|
Total contained
copper
|
tonnes
|
68,731
|
67,616
|
58,350
|
136,348
|
87,111
|
|
|
|
|
|
|
|
Ore
summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total primary ore
mined
|
tonnes
|
1,900,443
|
1,583,829
|
1,374,441
|
3,484,272
|
2,018,785
|
Average Cu
grade
|
%
|
3.38
|
3.87
|
3.54
|
3.60
|
3.66
|
Average Co
grade
|
%
|
0.33
|
0.38
|
0.42
|
0.35
|
0.46
|
|
|
|
|
|
|
|
Total very low-grade
ore mined
|
tonnes
|
339,812
|
548,178
|
689,071
|
887,992
|
893,886
|
Average Cu
grade
|
%
|
0.98
|
0.96
|
1.01
|
0.97
|
1.03
|
Average Co
grade
|
%
|
0.24
|
0.20
|
0.20
|
0.22
|
0.20
|
|
|
|
|
|
|
|
Total cobalt ore
mined
|
tonnes
|
218,266
|
176,030
|
790,716
|
394,295
|
1,343,758
|
Average Co
grade
|
%
|
0.78
|
0.73
|
0.68
|
0.76
|
0.61
|
Average Cu
grade
|
%
|
0.53
|
0.57
|
0.35
|
0.55
|
0.30
|
Total ore
mined
|
tonnes
|
2,458,522
|
2,308,037
|
2,854,228
|
4,766,559
|
4,256,429
|
Average Cu
grade
|
%
|
2.80
|
2.93
|
2.04
|
2.86
|
2.05
|
Average Co
grade
|
%
|
0.36
|
0.37
|
0.44
|
0.36
|
0.45
|
|
|
*
|
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 increased to 2,458,522 tonnes in Q2 2019 from
2,308,037 tonnes in Q1 2019. Total ore mined increased to 4,766,559
tonnes in Q2 2019 YTD from 4,256,429 tonnes in Q2 2018 YTD.
Total waste mined increased to 13,660,266 tonnes in Q2 2019 from
10,259,978 tonnes in Q1 2019. Total waste mined increased to
23,920,244 tonnes in Q2 2019 YTD from 21,780,865 tonnes in Q2 2018
YTD.
Total contained copper increased to 68,731 tonnes in Q2 2019
from 67,616 tonnes in Q1 2019. Total contained copper increased to
136,348 tonnes in Q2 2019 YTD from 87,111 tonnes in Q2 2018
YTD.
The increase in total material mined in the combined open pits
in Q2 2019 compared to Q2 2018 related to the ramp-up of production
and commissioning of the second Whole Ore Leach train in H2
2018.
The increase in total material mined in the combined open pits
in Q2 2019 compared to Q1 2019 reflects the start of the dry season
and subsequent ramp-up of production 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 and will be fed into the processing plant in the
future.
Kamoto concentrator
|
|
Three months
ended
|
Six months
ended
|
|
|
Jun
30,
2019
|
Mar, 31
2019
|
Jun 30,
2018
|
Jun
30,
2019
|
Jun 30,
2018
|
Total material
milled and processed
|
tonnes
|
2,574,400
|
2,707,115
|
1,970,359
|
5,281,515
|
3,595,014
|
|
|
|
|
|
|
|
KITD material
processed
|
tonnes
|
773,672
|
747,327
|
882,768
|
1,520,999
|
1,628,751
|
Cu grade in
ore
|
%
|
1.32
|
1.50
|
1.66
|
1.41
|
1.56
|
Co grade in
ore
|
%
|
0.16
|
0.18
|
0.17
|
0.17
|
0.17
|
|
|
|
|
|
|
|
Open pit ore
milled
|
tonnes
|
1,642,357
|
1,818,399
|
1,044,821
|
3,460,757
|
1,923,493
|
Cu grade in
ore
|
%
|
3.14
|
3.41
|
3.60
|
3.28
|
3.74
|
Co grade in
ore
|
%
|
0.28
|
0.37
|
0.41
|
0.33
|
0.48
|
|
|
|
|
|
|
|
Underground ore
milled
|
tonnes
|
158,371
|
141,388
|
42,770
|
299,759
|
42,770
|
Cu grade in
ore
|
%
|
3.64
|
3.64
|
3.32
|
3.64
|
3.32
|
Co grade in
ore
|
%
|
0.55
|
0.52
|
0.54
|
0.54
|
0.54
|
|
|
|
|
|
|
|
Production
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oxide
concentrate
|
tonnes
|
38,663
|
37,536
|
47,347
|
76,199
|
81,115
|
Sulphide
concentrate
|
tonnes
|
28,165
|
29,750
|
18,172
|
57,915
|
44,854
|
Total concentrate
produced
|
tonnes
|
66,828
|
67,286
|
65,519
|
134,114
|
125,969
|
Cu grade in
concentrate
|
%
|
18.84
|
19.25
|
18.56
|
19.04
|
17.52
|
Co grade in
concentrate
|
%
|
2.14
|
2.14
|
1.38
|
2.14
|
1.17
|
|
|
|
|
|
|
|
Oxide feed
received at Luilu
|
tonnes
|
1,599,507
|
1,822,820
|
1,020,106
|
3,422,326
|
1,839,306
|
Cu grade in oxide
feed
|
%
|
2.93
|
3.12
|
2.98
|
3.03
|
3.02
|
|
|
|
|
|
|
|
Total contained
copper
|
tonnes
|
59,485
|
69,818
|
42,612
|
129,302
|
77,608
|
Total material milled and processed decreased to 2,574,400
tonnes in Q2 2019 from 2,707,115 tonnes in Q1 2019. Total material
milled and processed increased to 5,281,515 tonnes in Q2 2019 YTD
from 3,595,014 tonnes in Q2 2018 YTD.
Total concentrate produced decreased to 66,828 tonnes in Q2 2019
from 67,286 tonnes in Q1 2019. Total concentrate produced increased
to 134,114 tonnes in Q2 2019 YTD from 125,969 tonnes in Q2 2018
YTD.
Total oxide feed received at Luilu decreased to 1,599,507 tonnes
in Q2 2019 from 1,822,820 tonnes in Q1 2019. Total oxide feed
received at Luilu increased to 3,422,326 tonnes in Q2 2019 YTD from
1,839,306 tonnes in Q2 2018 YTD.
Total contained copper in concentrate and oxide feed produced
decreased to 59,485 tonnes in Q2 2019 from 69,818 tonnes in Q1
2019. Total contained copper in concentrate and oxide feed produced
increased to 129,302 tonnes in Q2 2019 YTD from 77,608 tonnes in Q2
2018 YTD.
The increase in total material milled and processed in Q2 2019
compared to Q2 2018 reflected the ramp-up and optimization of CM6
and CM7, following their commissioning at the end of 2018, as well
as increased availability from the CM5 oxide mill. The decrease in
total material milled and processed in Q2 2019 compared to Q1 2019
reflects the deceleration of milling rates to accommodate the
reduced copper plating capacity at the Luilu refinery.
Luilu metallurgical plant
|
|
Three months
ended
|
Six months
ended
|
|
|
Jun
30,
2019
|
Mar 31,
2019
|
Jun 30,
2018
|
Jun
30,
2019
|
Jun 30,
2018
|
WOL feed – oxide
concentrate*
|
tonnes
|
38,663
|
37,536
|
83,676
|
76,199
|
170,121
|
WOL feed – oxide
feed
|
tonnes
|
1,599,507
|
1,822,820
|
1,020,106
|
3,422,326
|
1,839,306
|
Total oxide
feed
|
tonnes
|
1,638,170
|
1,860,356
|
1,103,782
|
3,498,525
|
2,009,427
|
|
|
|
|
|
|
|
Total oxide Cu
grade
|
%
|
3.14
|
3.28
|
3.75
|
3.22
|
3.88
|
Total oxide Co
grade
|
%
|
0.27
|
0.37
|
0.41
|
0.33
|
0.47
|
|
|
|
|
|
|
|
Sulphide roaster
feed
|
tonnes
|
27,589
|
26,772
|
5,823
|
54,361
|
5,823
|
|
|
|
|
|
|
|
Sulphide Cu
grade
|
%
|
26.13
|
26.92
|
33.78
|
26.52
|
33.78
|
Sulphide Co
grade
|
%
|
3.28
|
3.06
|
4.02
|
3.17
|
4.02
|
|
|
|
|
|
|
|
Production
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper
cathode
|
tonnes
|
52,514
|
57,175
|
35,615
|
109,690
|
63,292
|
Cobalt contained
in hydroxide
|
tonnes
|
2,607
|
3,511
|
2,429
|
6,118
|
2,954
|
|
|
*
|
consists of amounts
produced at KTC during comparable periods plus inventory
drawdown
|
Total copper cathode produced decreased to 52,514 tonnes in Q2
2019 from 57,175 tonnes in Q1 2019. Total copper cathode produced
increased to 109,690 tonnes in Q2 2019 YTD from 63,292 tonnes in Q2
2018 YTD.
Total cobalt contained in hydroxide decreased to 2,607 tonnes in
Q2 2019 from 3,511 tonnes in Q1 2019. Total cobalt contained in
hydroxide increased to 6,118 tonnes in Q2 2019 YTD from 2,954
tonnes in Q2 2018 YTD.
The sequential decrease in the production of copper cathode
reflected the reduced plating capacity at Luilu refinery.
The increase from Q2 2018 in the production of cobalt contained
in hydroxide was driven by increased in milling capacity following
the ramp-up and optimization. The decrease from Q1 2019 production
of cobalt hydroxide reflected the lower feed rates to accommodate
the reduced plating capacity at Luilu refinery.
Outlook
On April 29 2019, the Company
announced that a full and comprehensive business review (the
"Review") had 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 the Company's prospects. At the same time, the Company
noted that it expected that 2019 production of copper and cobalt
would be lower than the guidance provided at the beginning of the
year, namely c.285kt of copper and c.26kt of contained cobalt, and
that it would provide an update in Q3 2019, once the Review was
complete. The Company expects to be in a position to provide an
update as part of the Company's second quarter financial results,
scheduled to be released on August 6,
2019.
Appointment of Peter Freyberg
as director of the Company and Chairman of HSSE committee
The Board of Directors approved the appointment of Peter Freyberg as director of the Company and
Chairman of the Company's HSSE Committee. Mr. Freyberg replaces
Mike Ciricillo, who tendered his
resignation as director of the Company on July 12, 2019.
Mr. Freyberg is the Head of Industrial Assets for the Glencore
group. He originally joined the Glencore coal assets business in
2000, and transferred to Xstrata in 2002 when Glencore sold its
coal assets to Xstrata. Mr. Freyberg became Chief Executive Officer
of Xstrata Coal in 2008 and rejoined Glencore in 2013 when Glencore
merged with Xstrata.
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 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. 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