Katanga Mining Limited

Katanga Mining Limited

January 31, 2007 09:20 ET

Katanga Awards Important Infrastructure Contracts

LONDON, UNITED KINGDOM--(CCNMatthews - Jan. 31, 2007) - Katanga Mining Limited (TSX:KAT) today announced that it has awarded two important contracts in its rehabilitation of the Kamoto Mine in the Democratic Republic of Congo.

The first contract is for the structural, mechanical and piping work for the Luilu Metallurgical Plant and Kamoto Concentrator, which includes constructing 21 kilometres of piping (three seven-kilometre pipelines) for the concentrate delivery system between the two facilities. The second contract is for the electrical and instrumentation work on these two facilities. The initial focus will be on the high-voltage substations and transformers. Representatives of both companies awarded the contracts are already onsite, with full mobilization in early February.

The companies will supervise and supply labour to undertake all of the installation work for materials provided under purchase orders issued late last year that are now starting to arrive onsite. Orders have now been placed for all major, long lead time equipment, and approximately 400 containers of materials will be shipped to site between now and September. The contracts are together worth over US$17 million out of US$66 million committed to date.

"Following all the preparation work last year, construction activity is now accelerating onsite as we prepare to hit our key milestones on the path to first copper production by the end of 2007," said Arthur H. Ditto, President and CEO of Katanga Mining Limited. "Construction of the compound to accommodate manpower is under way and will be available shortly."

In the next few weeks, Katanga will publish a 43-101 compliant update to its reserves and resources estimate as of December 31, 2006. This update will incorporate more advanced mining plans and a substantial body of additional assay data.

To learn more about Katanga Mining Limited, please visit our website at www.katangamining.com

Katanga Mining Limited is poised to become a significant player in the global copper mining industry through its rehabilitation of the long life, high grade Kamoto Mine in the Democratic Republic of Congo.

Production will begin in late 2007 and, once fully operational, the mine will produce 150,000 tonnes of copper and 5,000 tonnes of cobalt a year at one of the world's lowest operating costs.

The company is listed on the Toronto Stock Exchange, the premier exchange for the mining industry, under the symbol KAT.

Katanga Mining Limited
15 Golden Square
London W1F 9JG
United Kingdom
Tel: +44 (0)20 7440 5800

Contact Information

  • Katanga Mining Limited
    Arthur H. Ditto
    President & Chief Executive Officer
    +44 (0)20 7440 5824
    Mobile: +44 (0)7983 447774
    Katanga Mining Limited
    Anu Dhir
    Vice President, Corporate Development
    +44 (0)20 7440 5822
    Mobile: +44 (0)7983 438942
    Website: www.katangamining.com