Katanga Mining announced that it has commenced a review of its business, including operations and expenses, in light of the challenging environment for commodities. A similar review at Mopani Copper Mines has also commenced. This will include the suspension of production at Katanga and Mopani for 18 months up until the completion of the expansionary and upgrade projects. This includes the whole ore leach at Katanga and the new shafts and concentrator at Mopani. A suspension of operations will remove approximately 400,000 metric tons (mt) of copper cathode from the market.
The upgrade programs will provide a material reduction in overall operating costs at both operations. Once complete, the programs are expected to reduce C1 costs at Katanga and Mopani to $1.65/lb and $1.70/lb, respectively, from more than $2.50/lb today. Glencore will continue to fund the expansionary and upgrade projects at both operations. Mutanda Mining continues to perform well, producing above nameplate capacity at a C1 cost of $1.33/lb.