Industrial mining and social development: The case of Kamoto Copper Company (KCC)

Speaker: Gustave NZENGKCC Chairman

iPAD 2012

© 2008 Katanga Mining Limited Trading symbol: KAT.TO

La création d’une société leader Africaine de cuivre et cobalt

Overview

� Katanga Mining Limited (“KML” or “Katanga”) is a company listed on the Toronto Stock Exchange

� Katanga and Gecamines owns 75% and 25% of Kamoto Copper Company SARL (“KCC”) respectively, which is developing and operating high grade copper and cobalt mines with integrated metallurgical facilities in the Kolwezi region of the DRC

� The mineralised zones are at the western end of the Katangan Copperbelt, one of the world’s great metallogenic provinces, which contains some of the richest copper and cobalt deposits globally

Overview

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Resource Classification

Mt %TCu %TCo

Measured 40.5 4.14 0.54

Indicated 248.1 3.98 0.45

Measured and Indicated

288.6 4.00 0.46

Inferred 169.1 2.42 0.31

iPAD 2012

KTO Mine

KTC

Location of assets

Mashamba East (O/P)

Tilwezembe (O/P)

T-17 (O/P)

Kanaga (O/P)

KOV and Kamoto East Open Pits

Luilu Refinery

2 Km

1 Mi

3

14 km

T-17 Open Pit

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Mining operations summary

Mashamba East Open Pit

� Development project

� Dewatering to commence in 2016

� Expected to commence production in 2018

� Expected to produce 12.8m MT of ore at 2.8% copper grade through LOM

Underground Developments

� Conceptual work has been completed on T-17 underground and Kamoto East underground projects

� Planned for production ramp-up from 2014 for T-17, for a total of 14.4m MT of ore at diluted copper grade of 3.6%

� Planned for production ramp-up from 2020 for Kamoto East, 14.7m MT at diluted copper grades of 4.4%

Kanaga Mine andTilwezembe Open Pit

� Development projects

� Not included in current LOM plan

Kamoto Underground Mine (KTO)

� KCC’s primary sulphide ore source

� Will ramp up yearly production to 2.2m MT to coincide with the completion of the Phase 4 processing plant expansion

� Scheduled to produce 36.2m MT of ore at 3.9% copper grade through LOM (to 2030)

KOV Open Pit

� Considered to be the world’s highest grade significant copper resource

� Scheduled to produce 83.8m MT of ore at 4.2% copper grade through LOM (to 2030)

T-17 Open Pit

� Cobalt-rich mine

� Currently under care and maintenance

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Mining operations – KTO

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Mining operations – KOV

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Before

Now

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Now

Mining operations – T17

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Before

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Mining operations – Kamoto East Open pit

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Before

Now

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Processing operations summary

Kamoto Concentrator (KTC)

�Operational concentrator, approximately 4km from Kolwezi

�Originally built between 1968 and 1982, refurbished back to historical nameplate capacity of 7.6m MT of ore p.a.

– Equivalent to 230k MT p.a. of finished copper production

�Further upgrades will increase this capacity to in excess of 9m MT of ore p.a.

– Equivalent to 270k MT p.a. of finished copper production

Luilu Refinery

�Operational metallurgical plant, approximately 6km north of KTC

�Has concentrate dewatering facilities, sulphide concentrate roasters, atmospheric leaching circuits and an electro-winning tank house for production of both copper and cobalt

�Production commenced in 1960 and expanded in the 1970’s

�Refurbished to capacity of 150k MT of copper and 8k MT of cobalt

Luilu Expansion Plans

�Significant construction works include

– Installation of a 300k MT p.a. solvent extraction plant

– Conversion of existing unused electro-refinery to a 200k MT p.a. electro-winning facility for base load copper production

– An additional in-pit crusher in KOV

– Refurbishment and re-use of the existing copper electro-winning facility as variable top-up capacity

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KTC operations - Mills

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NowCM1 to CM4 (capacity 9600 MT/day)

Before CM3 to CM4 (capacity 2400 MT/day)

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KTC operations – CM6 and 7

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NowRefurbished CM6 and CM7 (capacity 8,500 MT/day)

BeforeCM6 and CM7

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SX/EW project

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Social/sustainability – employees

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Social/sustainability – capital spend

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0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

2008 2009 2010 2011 2012B

$m

Roads and infrastructure Health Education and schools Community general Agriculture

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Social/sustainability – projects – transport/infrastruture

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Overview

�New barge at Lualaba

�Electrification for local communities

�Donation of electrical cables to help the National power company

�Donations of transformers to Swakala community

�Donation of cement for the construction of drains in Kolwezi

�Job creation for artisanal miners -community works and town cleansing with a local contractor

�Construction pedestrian bridges at Kananga over Kabongo, and over Musonoie river

�Rehabilitation of roads

�Rehabilitation of Kolwezi airport

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Social/sustainability – projects - health

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Overview

�New clinic at mine constructed in 2010

�Kowelzi general hospital - Mwangeji rehabilitated by Katanga (incl. wards, storeroom for drugs, equipment ,beds, mattresses, linen and blankets)

�Annual drugs donation

�Fight against Malaria through awareness campaigns, peer educators and vector campaigns

�Contributions to health care centres in the community

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Social/sustainability – projects - education

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Overview

�Amphitheatre, auditoriums, ceilings, roofing, stairs and windows constructed at new local university

�Rehabilitation of Jean XXIII College

�Construction of new schools at Mupanja/Tilwezembe, Luilu:

– Tshamundenda primary

– Matendo primary

– Nyumba ya Heri kindergarten

�Kolwezi Royal Athenaeum-rehabilitation and road access provision

�New school desks supplied to the Kolwezi Technical College ISTA

�Job creation as construction uses local contractors and school desks are manufactured by local entrepreneurs

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Social/sustainability – projects - water

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Overview

�Daily water distribution via water tanks to communities without access to drinkable water

�Drilling of wells equipped with manual pumps in schools yards constructed by KCC, to help rural communities access water (Matendo, Walemba, Kamanyola communities)

� Wells at Mutoshi fitted with high volume pump

�Rehabilitation of motorized pump in the community at Kapata

�Drilling of a well for the Mwangeji Hospital and construction of water storage with a capacity of 40.000 L

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Social/sustainability – projects - agriculture

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Overview

�Assisting with vegetable production, fish farming, poultry activities

�Contributing to the Provincial Government agricultural program ( 500ha)

�Developing nursery pools for the Kolwezi tree planting campaign

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Environmental – Luilu effluent discharge

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Overview

�Luilu is a complex that is more than 50 years old. It was in a poor condition when Glencore appointed KCC management took control of the operations in 2009.

�KCC commissioned a complex engineering project, which includes 4,500 meters of intricate steel piping and over 30 specialised pumps, to ensure that the effluent is neutralized and deposited into a lined tailings facility.

�The Government required that the plant remain open during remedial work so securing the continued direct employment of 6,500 people. This was understandable as this is an area where good jobs are comparatively scarce. But that meant that the work to fix this legacy problem had to be completed while the plant stayed fully operational, adding to the engineering challenges.

�The project was completed and commissioned during April 2012.

Neutralisation tanks treating effluent at Luilu before it is deposited in a lined tailings pond

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Social/sustainability – projects – erosion/dust

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Overview

�Planting of trees near local community houses to act as wind breakers

�Tree planting as part of the fight against erosion campaign

�Tailings’ re vegetation

�Road watering for dust suppression

iPAD 2012

Thank you for your attention