Baar, Switzerland — MININGREVIEW.COM — 12 May 2010 – Democratic Republic of Congo (DRC)-based copper-cobalt miner Katanga Mining Limited is implementing its accelerated development plan to speed up the increase in production capacity to 150 000 tpa of copper and 8 000 tpa of cobalt, and is also planning to double copper production capacity to 310 000 tpa and almost quadruple cobalt production capacity to 30 000 tpa.
Revealing this here in its first quarter results, the Swiss-based and Toronto-listed company confirmed its ability to fund this development through existing cash balances and cash generated from operations, based on current copper and cobalt prices.
The results statement went on to say that total sales for the first quarter of 2010, were US$140.7 million (R1.055 billion), comprising US$94.3 million (R707 million) for 12 915 tonnes of copper cathode, US$37.6 million (R282 million) for 900 tonnes of cobalt metal and US$8.8 million (R66 million) for copper concentrate containing 1 381 tonnes of copper.
It added that for the first quarter of 2010, the company had a gross profit of US$39.1 million (R293 million), and net income of US$27.6 million (R207 million).
C1 cash cost for the first quarter of 2010 “’ including mining, processing, administration and refining, net of cobalt credits “’ was US$1.34 per pound of copper.
The results statement went on to say that the company had commenced a scoping and engineering study which would be completed in the fourth quarter of 2010. This study would review the process engineering completed for the planned new SX/EW plant with a view towards reducing capital expenditures and simplifying process design, to facilitate the integration with the current site infrastructure.