London, England — MININGREVIEW.COM — January 23, 2008 – Katanga Mining Limited this week assumed complete management and financial control of the new Katanga Mining – the company that has resulted from its merger with Nikanor plc, says a news release published here today.
The merger has brought about a company with a combined market capitalisation of around US$$3.3 billion (close to R25 billion). It brings together the adjacent properties in the Democratic Republic of Congo (DRC) owned by Katanga and Nikanor to create a major single-site operation.
The new, merged company will have the potential to become Africa’s largest copper producer and the world’s largest cobalt producer, with a targeted annual output approaching 400 000 tonnes of copper and 40 000 tonnes of cobalt by 2011.
The company announcement says extensive planning has been underway since the merger was announced in November. “Integration teams from both Katanga and Nikanor have been working to ensure the operations and management of the merged company are unified successfully,” it adds.
Katanga – through its joint ventures Kamoto Copper Company and DRC Copper and Cobalt Project – now employs more than 3 000 people in the DRC, with offices in Lubumbashi and Kolwezi. It also has offices in Johannesburg and London.
The announcement reveals that DCP is taking steps to make safety and performance-related improvements to the Kolwezi concentrator, which currently produces a copper-cobalt concentrate for sale to the market. “This work will necessitate a shutdown period, expected to be less than a month, but there are sufficient product stocks to continue shipments during that period,” it suggests. In the meantime, production continues to increase in the Kamoto complex.
Katanga Mining Limited operates a major copper-cobalt mine complex in the DRC which is scheduled to reach full production in 2011 when150 000 tonnes of refined copper and 8 000 tonnes of refined cobalt will be produced per year at one of the world’s lowest production costs.
Nikanor’s key mine is KOV, where a major state of the art refining plant is being built to produce 250 000 tonnes per year of LME A-grade copper cathode and 27 500 tonnes per year of cobalt products.