ZUG, Switzerland, Nov. 6, 2018 /CNW/ - Katanga Mining
Limited (TSX: KAT) ("Katanga" or the
"Company") today announced that its 75%-owned operating
subsidiary, Kamoto Copper Company SA ("KCC"), will
temporarily suspend the export and sale of cobalt at its Kamoto
Project in the Democratic Republic of the
Congo until further notice. The presence of uranium was
recently detected in the cobalt hydroxide produced at the Kamoto
Project in levels that exceed the acceptable limit allowed for
export of the product through main African ports to customers. To
date, the total cobalt production impacted by the sale suspension
amounts to 1472 tons of finished cobalt. The low levels of
radioactivity detected in the uranium to date do not present a
health and safety risk.
Production of cobalt at the Kamoto Project is expected to
continue without reduction in the quantity produced. The Company is
currently conducting additional surveys to identify the source of
the uranium and exploring various options to mitigate the impact of
the sales suspension.
KCC intends to construct an Ion Exchange system to remove
uranium from cobalt produced at the project. The Ion Exchange
system is expected to be commissioned by the end of the second
quarter 2019 subject to obtaining the necessary approvals. The
finished cobalt production will be stored on site and processed in
the Ion Exchange system once construction is completed. Once the
Ion Exchange system is commissioned, the processing and sale of the
cobalt stored on site is expected to be completed before the end of
the fourth quarter of 2019. The construction of the Ion Exchange
system is expected to cost approximately US$25 million.
The temporary suspension of cobalt sales during the construction
of the Ion Exchange system is expected to negatively impact revenue
of Katanga during the fourth quarter of 2018 and the first and
second quarters of 2019. The revenue that would otherwise be
recognized on cobalt sales during the fourth quarter of 2018 and
the first and second quarters of 2019 is expected to be realized in
the third and fourth quarters of 2019.
Currently the Company has not received any claims on the sales
which commenced in the second quarter 2018.
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.
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 Ion Exchange system will be completed in the time
contemplated, at the expected cost of construction and will serve
the purposes for which it is intended; the health and safety
implications of the uranium are consistent with management's
expectations; there being no significant disruptions affecting the
operations of the Company whether due to legal disputes, judicial
action, 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; new equipment performs to
expectations; the exchange rate between the US dollar, South
African rand, British pounds, 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. 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