Katanga Mining Limited

Katanga Mining Limited

October 26, 2006 10:59 ET

Katanga Orders Key Components for Mine Development; Rehabilitation of Kamoto Mine on Track

TORONTO, ONTARIO--(CCNMatthews - Oct. 26, 2006) - Katanga Mining Limited (TSX:KAT) ("Katanga") announced today that it placed orders this week for several key components necessary for the continued development and rehabilitation of the Kamoto Mine.

An agreement has been reached with Atlas Copco to supply Kamoto Copper Company (the "Joint Venture") with the primary mining fleet required to restart the Kamoto Mine. The contract is valued at $13.3 million USD. Katanga is pleased to note that the cost of the mining fleet is lower than the budgeted amount as contemplated in the feasibility study. Units are scheduled to begin arriving on site March 2007 ahead of the required start-up of the Kamoto Mine.

The Joint Venture also entered into an Engineering Procurement Construction Management ("EPCM") agreement with Hatch Fluidization Technology Group for the supply of two 400 tonne per day industrial copper concentrate roasters. It should be noted that these roasters will not be required until a year after the start of production. The roasters are key components in Katanga ultimately producing in excess of 150,000 tonnes of copper and 5,000 tonnes of cobalt per year. Engineering will begin immediately and the first roaster is expected to be operational in mid 2008. The Company's progress in bringing the Kamoto/Dima project into production is on track and all site work is proceeding satisfactorily.

Katanga Mining Limited is staged to become a premier copper and cobalt producer through its investment in the long-lived, high-grade Kamoto Mine, located in the Katanga Province of the Democratic Republic of Congo. For over 70 years, the Katanga Province has been an important producer of copper and cobalt to the world markets.

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

Contact Information

  • Katanga Mining Limited
    Arthur H. Ditto
    President & Chief Executive Officer
    Office: (416) 369-4340
    Mobile: (416) 456-3308
    Katanga Mining Limited
    Anu Dhir
    VP Corp. Development
    Office: 44 (0) 20 3008 5280
    Mobile: 44 (0) 79 834 38942
    Website: www.katangamining.com