ZUG, Switzerland, Feb. 3, 2020 /CNW/ - Katanga Mining Limited (TSX:
KAT) ("Katanga" or the "Company") today provides an update on its
major projects and announces its 2019 fourth quarter production
results at its 75%-owned subsidiary Kamoto Copper Company
("KCC").
Update on Major Projects as at December 2019
Cobalt Projects
The cobalt debottlenecking projects (the "Cobalt Projects")
continued to progress the final components of this project. The
temporary repairs of cobalt dryer #1 was completed in Q4 2019.
Dryer #2 is undergoing modifications and is expected to be
commissioned during Q1 2020, following which, dryer #1 will be
taken off-line for modification which is planned to be completed at
the end of Q1 2020. Ramp up to full drying capacity is targeted for
mid-2020.
Acid Plant Projects
The sulphuric acid, sulphur dioxide and steam turbine generator
projects (the "Acid Plant"), continues to progress towards targeted
commissioning during H1 2020.
Production highlights during the twelve months ended
December 31, 2019
Copper and Cobalt Production
Copper cathode production increased to 65,402 tonnes in Q4 2019
from 59,424 tonnes in Q3 2019.
Cobalt contained in hydroxide production increased to 6,173
tonnes in Q4 2019 from 4,763 tonnes in Q3 2019.
As previously announced, 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
contained in the cobalt hydroxide (the "Applicable
Regulations").
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 "IX Plant"). In
line with a long-term solution and further technical development,
Whole Ore Leach ("WOL") modeling has been completed which indicates
that both current and 'elevated' Uranium levels may be successfully
removed from the cobalt hydroxide product with KCC's Phosphoric
acid addition capabilities. KCC is however continuing to evaluate
the feasibility of an IX Plant.
Mining
|
|
Three months
ended
|
Twelve
months ended
|
|
|
Dec
31,
|
Sep 30,
|
Dec 31,
|
Dec
31,
|
Dec 31,
|
|
|
2019
|
2019
|
2018
|
2019
|
2018
|
Ore
mined*/**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KOV open
pit
|
tonnes
|
1,851,272
|
1,728,062
|
1,465,641
|
5,643,001
|
6,479,571
|
Mashamba East open
pit
|
tonnes
|
1,156,339
|
1,674,866
|
851,968
|
5,252,662
|
3,318,476
|
Total open
pits
|
tonnes
|
3,007,611
|
3,402,928
|
2,317,609
|
10,895,663
|
9,798,047
|
|
|
|
|
|
|
|
KTO
underground
|
tonnes
|
223,437
|
158,116
|
154,022
|
662,989
|
369,680
|
Total ore
mined
|
tonnes
|
3,231,048
|
3,561,044
|
2,471,631
|
11,558,652
|
10,167,727
|
|
|
|
|
|
|
|
Waste mined and
primary development*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KOV open
pit
|
tonnes
|
8,204,253
|
9,604,164
|
8,057,522
|
33,982,397
|
29,757,641
|
Mashamba East open
pit
|
tonnes
|
1,679,714
|
5,161,024
|
5,777,914
|
14,587,002
|
21,224,044
|
Total open
pits
|
tonnes
|
9,883,967
|
14,765,188
|
13,835,436
|
48,569,399
|
50,981,685
|
|
|
|
|
|
|
|
KTO
underground
primary
development
|
meters
|
-
|
-
|
151
|
137
|
1,127
|
Total waste
mined***
|
tonnes
|
9,883,967
|
14,765,188
|
13,835,436
|
48,569,399
|
50,981,685
|
|
|
|
|
|
|
|
Total material
mined
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KOV open
pit
|
tonnes
|
10,055,526
|
11,332,226
|
9,523,163
|
39,625,398
|
36,237,212
|
Mashamba East open
pit
|
tonnes
|
2,836,052
|
6,835,890
|
6,629,882
|
19,839,664
|
24,542,520
|
Total open
pits
|
tonnes
|
12,891,578
|
18,168,116
|
16,153,045
|
59,465,062
|
60,779,732
|
|
|
|
|
|
|
|
KTO
underground
|
tonnes
|
223,437
|
158,116
|
154,022
|
662,989
|
369,680
|
Total material
mined***
|
tonnes
|
13,115,015
|
18,326,232
|
16,307,067
|
60,128,050
|
61,149,412
|
|
|
|
|
|
|
|
Total contained
copper
|
tonnes
|
92,821
|
112,015
|
61,393
|
341,206
|
218,147
|
|
|
|
|
|
|
|
|
|
Three
months
ended
|
Twelve months
ended
|
|
|
|
|
|
Dec
31,
|
Sep 30,
|
Dec 31,
|
Dec
31,
|
Dec 31,
|
|
|
2019
|
2019
|
2018
|
2019
|
2018
|
Ore
summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total primary ore
mined
|
tonnes
|
2,207,302
|
2,978,497
|
1,648,105
|
8,670,071
|
5,322,494
|
Average Cu
grade
|
%
|
3.81
|
3.59
|
3.28
|
3.65
|
3.49
|
Average Co
grade
|
%
|
0.49
|
0.50
|
0.41
|
0.44
|
0.46
|
|
|
|
|
|
|
|
Total low-grade ore
mined
|
tonnes
|
596,925
|
471,759
|
616,436
|
1,956,676
|
2,299,703
|
Average Cu
grade
|
%
|
1.05
|
0.95
|
1.04
|
0.99
|
1.01
|
Average Co
grade
|
%
|
0.36
|
0.25
|
0.18
|
0.27
|
0.20
|
|
|
|
|
|
|
|
Total cobalt ore
mined
|
tonnes
|
426,821
|
110,789
|
207,090
|
931,905
|
2,545,530
|
Average Co
grade
|
%
|
0.56
|
0.67
|
0.58
|
0.56
|
0.59
|
Average Cu
grade
|
%
|
0.55
|
0.61
|
0.42
|
0.66
|
0.36
|
Total ore
mined
|
tonnes
|
3,231,048
|
3,561,045
|
2,471,631
|
11,558,652
|
10,167,727
|
|
|
|
|
|
|
|
Average Cu
grade
|
%
|
2.87
|
3.15
|
2.48
|
2.95
|
2.15
|
Average Co
grade
|
%
|
0.48
|
0.47
|
0.37
|
0.43
|
0.43
|
|
|
*
|
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%
and the low-grade component is defined
as having a Cu grade between 0.65% and 1.25%. 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 a hydro-mining reclamation project
|
***
|
Underground waste is
excluded
|
Total ore mined decreased to 3,231,048 tonnes in Q4 2019 from
3,561,044 tonnes in Q3 2019. Total ore mined increased to
11,558,652 tonnes in 2019 from 10,167,727 tonnes in 2018.
Total waste mined decreased to 9,883,967 tonnes in Q4 2019 from
14,765,188 tonnes in Q3 2019. Total waste mined decreased to
48,569,399 tonnes in 2019 from 50,981,685 tonnes in 2018.
Total contained copper decreased to 92,821 tonnes in Q4 2019
from 112,015 tonnes in Q3 2019. Total contained copper increased to
341,206 tonnes in 2019 from 218,147 tonnes in 2018.
The decrease in total material mined in the open pits in 2019
compared to 2018 relates to ongoing optimization of the mine
plan.
The decrease in total material mined in the combined open pits
in Q4 2019 compared to Q3 2019 reflects the start of the wet
season. The wet season is accounted for in KCC's mine planning
process and the results are in line with production forecasts.
The ongoing mining and stockpiling of low-grade ore reflects the
optimization of the long-term plant feed strategy. The low-grade
ore is currently being stockpiled and will be fed into the
processing plant on a planned basis in the future.
Kamoto Concentrator
|
|
Three months
ended
|
Twelve
months ended
|
|
|
Dec
31,
2019
|
Sep 30,
2019
|
Dec 31,
2018
|
Dec
31,
2019
|
Dec 31,
2018
|
Total material
milled and
processed
|
tonnes
|
2,346,569
|
2,467,572
|
2,482,663
|
10,095,656
|
7,529,596
|
|
|
|
|
|
|
|
KITD material
processed
|
tonnes
|
437,969
|
561,506
|
726,206
|
2,520,474
|
2,483,169
|
Cu grade in
ore
|
%
|
1.35
|
1.22
|
1.55
|
1.36
|
1.57
|
Co grade in
ore
|
%
|
0.17
|
0.17
|
0.18
|
0.17
|
0.18
|
|
|
|
|
|
|
|
Open pit ore
milled
|
tonnes
|
1,692,495
|
1,768,335
|
1,600,911
|
6,921,586
|
4,703,021
|
Cu grade in
ore
|
%
|
3.88
|
3.50
|
3.18
|
3.48
|
3.43
|
Co grade in
ore
|
%
|
0.50
|
0.43
|
0.42
|
0.40
|
0.45
|
|
|
|
|
|
|
|
Underground ore
milled
|
tonnes
|
216,105
|
137,731
|
155,546
|
653,596
|
343,406
|
Cu grade in
ore
|
%
|
3.81
|
3.40
|
3.40
|
3.64
|
3.34
|
Co grade in
ore
|
%
|
0.58
|
0.65
|
0.65
|
0.57
|
0.63
|
|
|
|
|
|
|
|
Production
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oxide
concentrate
|
tonnes
|
21,887
|
26,376
|
35,752
|
124,462
|
107,094
|
Sulphide
concentrate
|
tonnes
|
35,557
|
26,349
|
30,026
|
119,821
|
98,489
|
Total concentrate
produced
|
tonnes
|
57,444
|
52,725
|
65,778
|
244,283
|
205,583
|
Cu grade in
concentrate
|
%
|
24.61
|
20.45
|
20.77
|
20.66
|
20.19
|
Co grade in
concentrate
|
%
|
2.81
|
2.47
|
2.68
|
2.37
|
2.1
|
|
|
|
|
|
|
|
Oxide feed
received at Luilu
|
tonnes
|
1,688,262
|
1,748,911
|
1,602,666
|
6,859,499
|
4,666,773
|
Cu grade in oxide
feed
|
%
|
3.55
|
3.16
|
2.86
|
3.19
|
3.02
|
|
|
|
|
|
|
|
Total contained
copper
|
tonnes
|
74,024
|
66,057
|
59,527
|
269,383
|
182,566
|
|
|
|
|
|
|
|
|
Total material milled and processed decreased to 2,346,569
tonnes in Q4 2019 from 2,467,572 tonnes in Q3 2019. Total material
milled and processed increased to 10,095,656 tonnes in 2019 from
7,529,596 tonnes in 2018.
Total concentrate produced increased to 57,444 tonnes in Q4 2019
from 52,725 tonnes in Q3 2019. Total concentrate produced increased
to 244,283 tonnes in 2019 from 205,583 tonnes in
2018.
Total oxide feed received at Luilu decreased to 1,688,262 tonnes
in Q4 2019 from 1,748,911 tonnes in Q3 2019. Total oxide feed
received at Luilu increased to 6,859,499 tonnes in 2019 from
4,666,773 tonnes in 2018.
Total contained copper in concentrate and oxide feed produced
increased to 74,024 tonnes in Q4 2019 from 66,057 tonnes in Q3
2019. Total contained copper in concentrate and oxide feed produced
increased to 269,383 tonnes in 2019 from 182,566 tonnes in
2018.
The increase in total material milled and processed in 2019
compared to 2018 is driven by the increase in milling capacity due
to the ramp-up and optimization of CM6 and CM7 following
commissioning at the end of 2018, as well as increased availability
of the CM5 oxide mill.
The decrease in total material milled and processed in Q4 2019
compared to Q3 2019 was driven by the objective of reducing overall
acid consumption by increasing copper feed grades and reducing the
oxide feed tonnage.
Luilu metallurgical plant
|
|
Three months
ended
|
Twelve
months ended
|
|
|
Dec 31,
2019
|
Sep 30,
2019
|
Dec 31,
2018
|
Dec 31,
2019
|
Dec 31,
2018
|
WOL feed – oxide
concentrate*
|
tonnes
|
21,887
|
26,376
|
35,752
|
124,462
|
198,317
|
WOL feed – oxide
feed
|
tonnes
|
1,688,262
|
1,748,911
|
1,602,666
|
6,859,499
|
4,666,773
|
Total oxide
feed
|
tonnes
|
1,710,149
|
1,775,287
|
1,638,418
|
6,983,961
|
4,865,090
|
|
|
|
|
|
|
|
Total oxide Cu
grade
|
%
|
3.67
|
3.28
|
3.07
|
3.34
|
3.44
|
Total oxide Co
grade
|
%
|
0.48
|
0.43
|
0.43
|
0.39
|
0.45
|
|
|
|
|
|
|
|
Sulphide roaster
feed
|
tonnes
|
34,962
|
25,089
|
25,588
|
114,413
|
58,099
|
|
|
|
|
|
|
|
Sulphide Cu
grade
|
%
|
29.44
|
26.09
|
27.27
|
27.32
|
29.17
|
Sulphide Co
grade
|
%
|
3.71
|
3.68
|
3.86
|
3.45
|
4.04
|
|
|
|
|
|
|
|
Production
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Copper
cathode
|
tonnes
|
65,402
|
59,424
|
49,770
|
234,516
|
152,357
|
Cobalt contained
in
hydroxide
|
tonnes
|
6,173
|
4,763
|
4,646
|
17,054
|
11,112
|
|
|
|
|
|
|
|
Total copper cathode produced increased to 65,402 tonnes in Q4
2019 from 59,424 tonnes in Q3 2019. Total copper cathode produced
increased to 234,516 tonnes in 2019 from 152,357 tonnes in
2018.
Total cobalt contained in hydroxide increased to 6,173 tonnes in
Q4 2019 from 4,763 tonnes in Q3 2019. Total cobalt contained in
hydroxide increased to 17,054 tonnes in 2019 from 11,112 tonnes in
2018.
The increase in Q4 2019 copper cathode and cobalt contained in
hydroxide production compared to Q4 2018 was driven by a ramp-up of
oxide material treatment rates at the Luilu refinery.
The increase in copper cathode production in Q4 2019 from Q3
2019 was due to progress made on the electrowinning ("EW")
refurbishment program and current efficiency improvements as well
as maintaining high ore feed rates and copper grades to Luilu
refinery.
Outlook
On April 29, 2019, the Company
announced that KCC had commenced a comprehensive business review
targeting mining efficiencies and processing improvements as well
as enhancements to product quality realizations and overhead cost
reductions (the "Review").
Indications suggest there may be scope for margin improvements
in the order of $200-250 million per
annum. Further work, seeking to develop detailed implementation
plans to deliver these improvements is being undertaken, which if
successful, are expected to be realizable progressively by
2022.
KCC has defined business priorities such as, but not limited to,
improved efficiencies, maintenance, labor productivity and
production quality, while decreasing the costs associated with
procurement, sourcing and information technology. KCC has commenced
executing key cost reduction initiatives identified in the
transformation review process.
These improvements are expected to materially increase the cash
flow generation of KCC from 2022, when it is projected to achieve
targeted life of mine average production of approximately
300ktonnes of copper and 30ktonnes of cobalt, resulting in a steady
state copper unit cash cost of $1.65/lb, before cobalt by-product credits, and
$0.75/lb after cobalt by-product
revenue, net of allocable cobalt direct production and
realization/selling costs of approximately $0.60/lb. Realization costs are based on an
assumed copper price of $6,500/t and
realized cobalt price of $15/lb.
Production guidance for copper and cobalt is as follows:
Commodity
|
Units
|
FY2020
|
Copper (1)
|
Ktonnes
|
270
|
Cobalt (2)
|
Ktonnes
|
29
|
|
|
Notes:
|
|
(1)
|
Annual copper
production guidance is subject to +/- 15 ktonnes
variation
|
(2)
|
Annual cobalt
production guidance is subject to +/- 2 ktonnes
variation
|
It should be noted that production in any given year will
fluctuate as a function of numerous factors, including the
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
(including the 2018 Mining Code).
Qualified Person
Tahir Usmani, PEng, APEGA, Mine
Technical Services Manager 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. The key assumptions that have been made in connection
with the forward-looking statements include the following: that the
Company will complete the ramp up of full drying capacity as part
of the Cobalt Projects in the time expected and realize the
anticipated benefits of the Cobalt Projects; 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; the Company being able to
confirm the margin and cash flow improvements identified by the
Review and then successfully implementing any such improvements;
continued recognition of the Company's mining concessions and other
assets, rights, titles and interests in the DRC; the continued
effectiveness of interim solutions for uranium identified in cobalt
or the completion of the IX Plant or other long-term solution in
the time contemplated, at the expected cost of construction;
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
performing consistent with 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