Katanga Mining Announces Limited Resumption of Cobalt Exports
ZUG, Switzerland, April 15, 2019 /CNW/ - Katanga Mining Limited (TSX: KAT) ("Katanga" or the "Company") today announces that its 75%-owned DRC subsidiary Kamoto Copper Company ("KCC") has resumed the export and sale of a limited quantity of cobalt that complies with both international and local Democratic Republic of Congo ("DRC") transport regulations with respect to the levels of uranium (the "Applicable Regulations").
In Q4 2018, the Company announced that KCC had temporarily suspended the export and sale of cobalt due to the presence of uranium detected in the cobalt hydroxide at levels that exceed the acceptable limit allowed for export of the product through main African ports to customers. The low levels of radioactivity detected in the uranium to date do not present a health and safety risk.
While KCC, together with the Company and KCC's 25% shareholder, DRC state-owned La Générale des Carrières et des Mines ("Gécamines"), have been working with the DRC government's Ministry of Mines and the Congolese Atomic Energy Agency (CGEA) on a long-term technical solution in the form of an ion exchange plant (the "Ion Exchange Plant"), KCC has also been exploring various alternative interim solutions, both operational and regulatory, to recommence the export and sale of cobalt.
Through interim operational solutions, KCC has produced approximately 930 tonnes of contained cobalt that complies with Applicable Regulations since January 2019. This represents approximately 22.5 percent of the total production of contained cobalt since January 2019. As confirmed by the competent DRC authorities, KCC will resume the export of its cobalt hydroxide complying with the Applicable Regulations with immediate effect. Such resumption of exports remains subject to the regular DRC export procedures, which include the continued monitoring by CGEA and by the relevant mining authorities.
KCC will continue to focus on implementing the interim operational solutions while it processes the Ion Exchange Plant.
About Katanga Mining Limited
Katanga Mining Limited operates a major mine complex in the Democratic Republic of Congo producing refined copper and cobalt. The Company has the potential to become Africa's largest copper producer and the world's largest cobalt producer. Katanga is listed on the Toronto Stock Exchange under the symbol KAT.
Forward Looking Statements
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All forward-looking statements reflect the Company's beliefs and assumptions based on information available at the time the statements were made. Actual results or events may differ from those predicted in these forward-looking statements. All of the Company's forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements. Although the Company believes that these assumptions are reasonable, these assumptions are not exhaustive of factors that may affect any of the forward-looking statements.
Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Although Katanga has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise, except in accordance with applicable securities laws.
SOURCE Katanga Mining Limited
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