Katanga to continue with $880m investment plan

JOHANNESBURG (miningweekly.com) – TSX-listed Katanga Mining, which has suspended copper and cobalt production for 18 months, will continue with its planned investment of $880-million into ongoing processing plant upgrades and the waste stripping of its KOV and Mashamba openpits, in the Democratic Republic of Congo.

These process upgrades included the commissioning of the new leach plant, which would replace the existing oxide concentration process.

The whole ore leach (WOL) project was currently on schedule for completion within the first half of 2017. The project was expected to significantly improve both copper recoveries and operating unit costs, with the latter to decrease to $1.65/lb. 

Despite the suspension of operations, Katanga would retain 80% of its existing workforce in an effort to reduce the impact of the suspension on employees.

Katanga would invest in a skills development programme, including work programmes at other operations and the attendance of identified staff at Mopani’s technical school in Zambia.

The mining company would also continue to operate its hospitals for the benefit of its employees and dependants and continue to run its health projects and various water supply projects, while community development programmes would also continue in partnership with government.

Representatives of Katanga had met with the relevant government ministries, including the Prime Minister to present the WOL project and the suspension plan.

Katanga stated that parent company Glencore had indicated that it would provide or procure the additional funding required for the WOL project and other capital expenditure during the WOL building and commissioning phase, in addition to any funding needed for care-and-maintenance-related activities, which would continue during the suspension period.