Katanga Mining Limited

Katanga Mining Limited

March 22, 2007 09:01 ET

Katanga Announces Improved Production Profile

LONDON, UNITED KINGDOM--(CCNMatthews - March 22, 2007) - Katanga Mining Limited (TSX:KAT) today announced an anticipated increase in production at the Kamoto Joint Venture, which is rehabilitating mines and plants near Kolwezi in the Democratic Republic of Congo.

The announcement follows the publication in February of new year-end reserve and resource estimates for December 31, 2006 (see press release dated February 22, 2007). The increase in grades enables the Joint Venture to increase production, especially during the early phases of its operations.

Copper production during the first three phases of operations, lasting until the end of 2010, is projected to increase 30 per cent to 266,500 tonnes. Similarly, projected cobalt production is up 63 per cent to 16,000 tonnes.

During the first 20 years of the Joint Venture, indicated copper production increases 16 per cent to 2.5 million tonnes and cobalt production 7 per cent to 122,000 tonnes.

"This improved production profile creates opportunity to reduce the already low cost of production projected from the feasibility study," stated Arthur Ditto, President & CEO of Katanga. "We expect our net cash flow in the early stages of the project to improve and the financial benefits for all stakeholders to increase."

Katanga will publish this production schedule, and cost updates as compared to its technical report, on its website, www.katangamining.com, in the next few days.

New production profile

Phase 1 Phase 2 Phase 3
2008 2009 2010
New Old New Old New Old
tonnes 39,734 27,070 86,547 68,468 140,157 109,693
tonnes 1,959 964 5,167 2,729 9,049 6,228

Phase 4 Total production
2011+ 20 years
New Old New Old
tonnes 2,241,270 1,961,812 2,507,708 2,167,043
tonnes 105,643 103,705 121,818 113,626

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

Katanga Mining Limited is becoming significant in global copper mining by rehabilitating mines and plants near Kolwezi in the Katanga Province of the Democratic Republic of Congo.

The site is getting ready to ship copper in December 2007. By 2011, the complex will produce 150,000 tonnes of refined copper and 5,000 tonnes of refined cobalt a year and will be among the world's lowest cost producers.

The Company is listed on the Toronto Stock Exchange under the symbol KAT.

Please note: There is a graph available on CCNMatthews' website at the following link: http://www.ccnmatthews.com/docs/path.pdf

Caution regarding forward-looking statements: The forward-looking statements made in this news release are based on management's assumptions and judgments regarding future events and results. Such forward-looking statements, including but not limited to those with respect to the prices of copper and cobalt, reserve and resource estimates, and estimated future production, involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual market prices of copper and cobalt; the actual results of current exploration; the actual results of future mining, processing and development activities; and changes in project parameters as plans continue to be evaluated; as well as those factors disclosed in the Company's filed documents.

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
    Katanga Mining Limited
    15 Golden Square
    London W1F 9JG
    United Kingdom
    +44 (0)20 7440 5800
    Website: www.katangamining.com