ZUG, Switzerland, Feb. 10, 2015 /CNW/ - Katanga Mining Limited (TSX: KAT) ("Katanga" or the "Company") today announces 2014 year end production results.
Highlights during the year ended December 31, 2014
- During the three months ended December 31, 2014 ("Q4 2014"), the Company mined 1,863,967 tonnes of ore, an 18% increase over the three months ended December 31, 2013 ("Q4 2013"), at an average grade of 4.22% resulting in contained copper in ore mined of 78,606 tonnes. During the year ended December 31, 2014, the Company mined a record 7,433,838 tonnes of ore, a 19% increase over the year ended December 31, 2013, at a grade of 3.91% resulting in contained copper in ore mined of 290,741 tonnes.
- Ore mined at the KOV Open Pit Mine ("KOV Open Pit") during Q4 2014 was 1,368,624 tonnes, a 32% increase from Q4 2013. The average copper grade of ore mined from KOV Open Pit during Q4 2014 was 4.41%, resulting in contained copper in ore mined of 60,358 tonnes. Waste mined at KOV Open Pit during Q4 2014 was 7,820,548 tonnes, a 17% decrease over Q4 2013. Ore mined at KOV Open Pit during 2014 was 5,382,433 tonnes, a 22% increase over 2013. The average copper grade of ore mined from KOV Open Pit during 2014 was 4.10%, resulting in contained copper in ore mined of 220,702 tonnes. Waste mined at KOV Open Pit during 2014 was 31,243,013 tonnes, a 1% decrease over 2013. Total volume increase was attributed to the addition of 4 new Caterpillar 793D haul trucks in Q2 2014.
- Ore mined at the KTO Underground Mine ("KTO") during Q4 2014 was 495,343 tonnes, an 8% increase over Q4 2013. The average copper grade of ore mined from KTO during Q4 2014 was 3.68%, resulting in contained copper in ore mined of 18,248 tonnes. Ore mined at KTO during 2014 was 1,943,326 tonnes, a 12% increase over 2013. The average copper grade of ore mined from KTO during 2014 was 3.42%, resulting in contained copper in ore mined of 66,471 tonnes. Total volume increase was primarily due to higher stope availability resulting from increased backfilling and development.
- During Q3 2014, the Company reduced the rate of the T17 Underground Mine development project in order to focus underground mining efforts on KTO and the Kamoto East Underground Mine ("KTE") (an extension of KTO). T17 Underground Mine development will continue but at a slower rate, with developmental ore extraction now expected to commence in Q2 2015.
- In Q4 2014, the Company commissioned a Caterpillar 24M grader used for road maintenance on the haul roads.
- Additionally, in 2014, the Company commissioned:
- Four new Caterpillar 793D haul trucks operating in KOV to increase ore and waste mining capacity and reduce contractor dependency;
- Two new Caterpillar 992K loaders and two Caterpillar drill rigs at KOV, to increase loading capacity and reduce dependency on contractor primary and secondary drilling;
- Shaft 2 winder upgrade at KTO;
- Modifications to the cement plant at KTO further improving cement backfilling rates; and
- Six Caterpillar AD45 and three new Atlas Copco MT436B underground mine trucks, which is expected to accelerate development, whilst reducing contractor dependency.
- Ore milled at the Kamoto Concentrator ("KTC") during Q4 2014 was a record 1,722,177 tonnes, a 15% increase over Q4 2013. Ore milled at KTC during 2014 was a record 6,306,027 tonnes, a 13% increase over 2013.
- In Q4 2014, a record 287,604 tonnes of concentrate (28% higher than Q4 2013) containing 51,177 tonnes of copper (8% higher than Q4 2013) were produced. In 2014, a record 905,750 tonnes of concentrate (27% higher than 2013) containing 182,257 tonnes of copper (13% higher than 2013) were produced.
- At Luilu Metallurgical Plant ("Luilu"), copper produced in metal for Q4 2014 totalled a record 42,807 tonnes, a 51% increase over Q4 2013. Copper produced in metal and concentrate for 2014 totalled a record 158,026 tonnes, a 16% increase over 2013.
- Cobalt metal produced totalled 884 tonnes for Q4 2014, a 66% increase from Q4 2013. Cobalt metal produced totalled 2,784 tonnes for 2014, a 21% increase from 2013.
- In Q4 2014, the Company commissioned:
- CM5 SAG mill, while ramping up to 11,700 tonnes per day nameplate capacity;
- EW3B plant (EW3A plant was commissioned during Q3 2014) resulting in a combined overall electrowinning ("EW") capacity of 300,000 tonnes per annum; and
- A 10 megawatt ("MW") diesel cogeneration plant.
- Additionally, in 2014, the Company commissioned:
- Oxide flotation roughers at KTC;
- KTC reagent preparation plant and dosing and distribution systems;
- An additional CCD which was converted from an existing oxide receiving thickener at Luilu;
- An oxide receiving thickener CCD conversion at Luilu;
- Lime plant bays and sodium-metabisulfite plants at Luilu;
- Roaster line 2 at Luilu;
- A heap leach pad extension, to increase capacity for the processing of lower grade ore; and
- Diluent storage facility
This press release was prepared under the supervision of Tim Henderson, Technical Consultant, Katanga and a "qualified person" as such term is defined in NI 43-101. Mr. Henderson 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 may contain forward-looking statements, including, but not limited to, the increase in mined volumes and grades of copper and cobalt, the impact of newly acquired or commissioned equipment on operations, a reduction in contractor dependency, and the development of an underground mine at T17 Open Pit. 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: 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 and development, 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 Democratic Republic of Congo ("DRC"); political and legal developments in the DRC being consistent with its current expectations; prices for diesel, natural gas, fuel oil, electricity and other key supplies being approximately consistent with current levels; 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; actual results and interpretation of current reclamation 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 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
For further information: Jeff Best, CEO, Tel: +41 (041) 766 71 10; Jacques Lubbe, CFO, Tel:+41 (041) 766 71 10