November 6, 2018
ZUG, SWITZERLAND, November 6, 2018 – Katanga Mining Limited (TSX: KAT) ("Katanga" or the "Company") today announced that its 75%-owned operating subsidiary, Kamoto Copper Company SA ("KCC"), will temporarily suspend the export and sale of cobalt at its Kamoto Project in the Democratic Republic of the Congo until further notice. The presence of uranium was recently detected in the cobalt hydroxide produced at the Kamoto Project in levels that exceed the acceptable limit allowed for export of the product through main African ports to customers. To date, the total cobalt production impacted by the sale suspension amounts to 1472 tons of finished cobalt. The low levels of radioactivity detected in the uranium to date do not present a health and safety risk.
Production of cobalt at the Kamoto Project is expected to continue without reduction in the quantity produced. The Company is currently conducting additional surveys to identify the source of the uranium and exploring various options to mitigate the impact of the sales suspension.
KCC intends to construct an Ion Exchange system to remove uranium from cobalt produced at the project. The Ion Exchange system is expected to be commissioned by the end of the second quarter 2019 subject to obtaining the necessary approvals. The finished cobalt production will be stored on site and processed in the Ion Exchange system once construction is completed. Once the Ion Exchange system is commissioned, the processing and sale of the cobalt stored on site is expected to be completed before the end of the fourth quarter of 2019. The construction of the Ion Exchange system is expected to cost approximately US$25 million.
The temporary suspension of cobalt sales during the construction of the Ion Exchange system is expected to negatively impact revenue of Katanga during the fourth quarter of 2018 and the first and second quarters of 2019. The revenue that would otherwise be recognized on cobalt sales during the fourth quarter of 2018 and the first and second quarters of 2019 is expected to be realized in the third and fourth quarters of 2019.
Currently the Company has not received any claims on the sales which commenced in the second quarter 2018.
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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.