Update of Katanga

RNS Number : 9446Y

Glencore PLC

14 September 2015

 

Baar, Switzerland

14 September, 2015

Update on Katanga

Glencore notes the announcement made by Katanga Mining Limited (Katanga) on 11 September that the Board of Katanga has confirmed the suspension of copper and cobalt production for 18 months. Katanga will continue with the planned investment of USD880 million into ongoing processing plant upgrades and the waste stripping of the KOV and Mashamba open pits. These process upgrades include the commissioning of the new leach plant which will replace the existing oxide concentration process. The Whole Ore Leach ("WOL") project is currently on schedule and budgeted to be completed by the end of the first half of 2017. This is expected to significantly improve both copper recoveries and operating unit costs. Unit costs are expected to decrease to c.$1.65lb.

Katanga will retain 80% of the existing workforce and will aim to minimize the impact of the suspension on its employees. During the suspension, Katanga will invest in a skills development program which will include work programs at other operations and the attendance of identified staff at Mopani's technical school in Zambia. In line with the commitment to responsible operations, Katanga will continue to operate its hospitals for the benefit of its employees and dependents and continue to run its health projects, including the various water supply projects. The Company funded community development programmes will continue in partnership with the Government. This will include the expansion of existing projects.

Representatives of Katanga have been in Kinshasa to meet with the relevant Government Ministries including the Prime Minister and have presented the WOL project and the suspension plan to them. Katanga undertakes to take into account the issues raised by the Government during the meetings.

For further information please contact:

Investors
Paul Smith	t: [phone]	m: [phone]	[e-mail]
Martin Fewings	t: [phone]	m: [phone]	[e-mail]
Elisa Morniroli	t: [phone]	m: [phone]	[e-mail]
Media
Charles Watenphul	t: [phone]	m: [phone]	[e-mail]
Pam Bell	t: [phone]	m: [phone]	[e-mail]

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Glencore is one of the world's largest global diversified natural resource companies and a major producer and marketer of more than 90 commodities. The Group's operations comprise of over 150 mining and metallurgical sites, oil production assets and agricultural facilities.

With a strong footprint in both established and emerging regions for natural resources, Glencore's industrial and marketing activities are supported by a global network of more than 90 offices located in over 50 countries. Glencore's customers are industrial consumers, such as those in the automotive, steel, power generation, oil and food processing. We also provide financing, logistics and other services to producers and consumers of commodities. Glencore's companies employ around 181,000 people, including contractors.

Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the International Council on Mining and Metals. We are an active participant in the Extractive Industries Transparency Initiative.

 

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