Baar, Switzerland
14 September, 2015
Update on Katanga
Glencore notes the announcement made by Katanga Mining Limited (Katanga) on 11 September that the Board of Katanga has confirmed the suspension of copper and cobalt production for 18 months. Katanga will continue with the planned investment of USD880 million into ongoing processing plant upgrades and the waste stripping of the KOV and Mashamba open pits. These process upgrades include the commissioning of the new leach plant which will replace the existing oxide concentration process. The Whole Ore Leach ("WOL") project is currently on schedule and budgeted to be completed by the end of the first half of 2017. This is expected to significantly improve both copper recoveries and operating unit costs. Unit costs are expected to decrease to c.$1.65lb.
Katanga will retain 80% of the existing workforce and will aim to minimize the impact of the suspension on its employees. During the suspension, Katanga will invest in a skills development program which will include work programs at other operations and the attendance of identified staff at Mopani's technical school in Zambia. In line with the commitment to responsible operations, Katanga will continue to operate its hospitals for the benefit of its employees and dependents and continue to run its health projects, including the various water supply projects. The Company funded community development programmes will continue in partnership with the Government. This will include the expansion of existing projects.
Representatives of Katanga have been in Kinshasa to meet with the relevant Government Ministries including the Prime Minister and have presented the WOL project and the suspension plan to them. Katanga undertakes to take into account the issues raised by the Government during the meetings.
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