Katanga Mining announces 2013 year end results and commitment of Glencore to extend and increase loan facilities

 Katanga Mining announces 2013 year end results and commitment of Glencore to  extend and increase loan facilities  ZUG, Switzerland, March 3, 2014 /CNW/ - Katanga Mining Limited (TSX: KAT)  ("Katanga" or the "Company") today announces the following:            --  Financial results for the 2013 fiscal year end. Katanga's             Financial Statements and Management's Discussion and Analysis             will be filed under its profile on SEDAR at,             www.sedar.com.         --  A commitment (the "Commitment") from Glencore Finance (Bermuda)             Limited, an affiliate of Glencore International AG ("Glencore")             to extend and increase its outstanding loan facilities.  Highlights during the year ended December 31, 2013  As announced previously by Katanga:  Mining         --  During 2013, the Company mined a record 6,243,163 tonnes of             ore, a 13% increase over 2012, at a grade of 4.07% resulting in             contained copper in ore mined of 254,070 tonnes, an 11%             increase over 2012.         --  Ore mined at KOV Open Pit during 2013 was a record 4,394,098             tonnes, a 19% increase over 2012.  The average copper grade of             ore mined from KOV Open Pit during 2013 was 4.37%, resulting in             contained copper in ore mined of 191,887 tonnes, an 18%             increase over 2012.         --  Waste mined at KOV Open Pit during 2013 was a record 31,644,013             tonnes, a 50% increase over 2012.         --  Ore mined at KTO Underground Mine during 2013 was 1,741,298             tonnes, a 5% decrease over 2012.  The average copper grade of             ore mined from KTO Underground Mine during 2013 was 3.36%,             resulting in contained copper in ore mined of 58,431 tonnes, a             12% decrease over 2012.  Lower mined volumes and grades are a             result of near-term chamber availability issues.  Management             expects mined volumes and grades to improve in 2014 due to the             increased backfill tonnes achieved in 2013 and the acceleration             of primary and secondary development.         --  Dewatering of T17 Open Pit was completed during 2013 and mining             of T17 Open Pit Cut 3 and 4 recommenced.  81,011 tonnes of             waste and 107,768 tonnes of ore were mined.  An average copper             grade of 3.48% and an average cobalt grade of 0.72% were             achieved.   This will facilitate the start of infrastructure             works related to the potential T17 underground mine.         --  In 2013, the Company commissioned:       o Five new Caterpillar 793 trucks (240 tonnes load capacity);       o Eight new Caterpillar 777 trucks (100 tonnes load capacity)         improving operating costs as these trucks haul direct to the         crusher, reducing handling and contractor costs;       o Two large diesel Caterpillar shovels (30 tonnes and 60 tonnes         bucket capacity);       o The Company's third RH340 shovel (60 tonnes bucket capacity); and       o Two 2MW generators dedicated to support the electric RH340 shovel         and KOV dewatering activities reducing the dependence on grid power         supply for KOV Open Pit mining activities.  Processing  As previously announced:         --  Ore milled at KTC during 2013 was a record 5,600,716 tonnes, a             21% increase over 2012.         --  Copper produced for 2013 totalled a record 136,192 tonnes, a             47% increase over 2012.         --  Cobalt produced totalled 2,297 tonnes for 2013, an 8% increase             over 2012.         --  At the end of December 2013 Katanga had installed annualised             production capacity of 200,000 tonnes per annum ("tpa").  Projects  As previously announced:  The Updated Phase 4 Expansion Project commissioning highlights for 2013  include:         --  Trains two and three of the Solvent Extraction ("SX") plant             increasing SX plant capacity to 200,000 tpa of copper transfer;         --  The converted electro-winning ("EW") facility with all sections             brought into operation increasing the new tankhouse capacity to             200,000 tpa of copper cathode;         --  The new sulphide concentrate receiving section, floatation             circuit, and the oxide receiving, leaching and CCD facilities             at Luilu.         --  Total expected project cost remains $769 million as previously             announced.         --  The feasibility study for extending the T17 Open Pit mine into             an underground mining operation was completed during 2013.              Management is continuing to advance the project with a view to             making a decision to proceed to production.  Selected Financial Results         --  Total sales for 2013 were $805.6 million, a 34% increase over             2012.         --  The realised copper price for 2013 was $3.22/lb, a 5% decrease             over 2012, while the realised cobalt price was $11.16/lb, a 7%             increase over 2012.         --  For 2013, the Company earned a net income attributable to             shareholders of $101.2 million, an increase of $57.1 million             from 2012.         --  Cash and cash equivalents as at December 31, 2013, amounted to             $25.7 million (December 31, 2012 - $57.0 million).  Outlook  As previously announced:         --  Construction has commenced on Phase 5, which includes EW3 (2 x             30,000 tpa capacity EW tankhouse units) and CM5 (mill of 11,700             tonnes per day nameplate capacity), and is expected to be             completed during the fourth quarter of 2014.  Commitment to extend and increase outstanding loan facilities  The existing loan facilities are comprised of: (a) senior secured credit  facility with a principal amount of US$515.5 million (the "Senior Facility");  and (b) a term loan facility with a principal amount of US$120.0 million (the  "Term Loan").  Each of the Senior Facility and the Term Loan will mature on  December 31, 2014 and interest is payable on any amount drawn under the Senior  Facility or Term Loan at 10% per annum.  The amended facilities are comprised of the Senior Facility and Term Loan,  each as amended (the "Amended Facilities") as follows:  The Commitment from Glencore provides that the Senior Facility will be  increased to US$2,289.2 million. This amount includes the existing US$515.5  million Senior Facility (plus accrued interest thereon) and all outstanding  Glencore prepayments to Katanga's subsidiary, Kamoto Copper Company sarl  ("KCC") plus accumulated interest thereon, which prepayments are to be  converted into loans.  Included in the total amount of the amended Senior  Facility is further funding of up to US$150.0 million intended to be made  available according to cash flow requirements of KCC based on the approved  budgets for the Updated Phase 4 Expansion Project and Phase 5 expansion (as  amended from time to time in agreement with Glencore).  The maturity of the  Senior Facility will be extended to January 1, 2018.  All other material terms  of the Senior Facility will remain the same.  The Commitment from Glencore provides that the maturity of the Term Loan will  be extended to January 1, 2018.  All other material terms of the Term Loan  will remain the same.  The Commitment and the Amended Facilities are subject to final documentation  being agreed and customary drawdown conditions being satisfied.  Katanga's Corporate Governance and Nominations Committee (the "Committee"),  which is comprised of three independent directors, has reviewed the proposed  Amended Facilities as contemplated by the Charter of the Committee. The  Committee retained Fasken Martineau DuMoulin LLP, independent legal counsel  and BMO Nesbitt Burns Inc., independent financial advisors, in connection with  that review. Following that review, the Committee has unanimously determined  that entering into the Amended Facilities is in the best interests of Katanga.  Glencore beneficially owns, directly or indirectly, or exercises control or  direction over approximately 75% of the issued and outstanding common shares  of Katanga.  Due to this relationship, the Amended Facilities are considered  "related party transactions" as defined by Multilateral Instrument 61-101 -  Protection of Minority Security Holders in Special Transactions ("MI 61-101").   Katanga is relying upon exemption from the requirement to obtain majority of  the minority shareholder approval available under MI 61-101 as the Committee  has determined that the Amended Facilities are loans on reasonable commercial  terms that are not less advantageous to Katanga than if the Amended Facilities  were obtained from a person dealing at arm's length with Katanga and do not  involve an equity or voting component.  Glencore has made the Amended Facilities available in the ordinary course of  its business.  It may from time to time acquire additional securities of  Katanga, dispose of some or all of the existing or additional securities it  holds or will hold, or may continue to hold its current position.  ------------------------------  About Katanga Mining Limited Katanga Mining Limited operates a major mine complex in the Democratic  Republic of Congo producing refined copper and cobalt. The Company has the  potential to become Africa's largest copper producer and the world's largest  cobalt producer. Katanga is listed on the Toronto Stock Exchange under the  symbol KAT.  Forward Looking Statements This press release may contain forward-looking statements, including, but not  limited to, the increase in mined volumes and grades of copper and cobalt ,  the potential for an underground mine at T17 Open Pit, the completion of the  Phase 5 project and the completion of final documentation and satisfaction of  usual and customary drawdown conditions with respect to the extension and  increase of the loan facilities. Often, but not always, forward-looking  statements can be identified by the use of words such as "plans", "expects" or  "does not expect", "is expected", "budget", "scheduled", "estimates",  "forecasts", "intends", "anticipates" or "does not anticipate", or "believes",  or describes a "goal", or variation of such words and phrases or state that  certain actions, events or results "may", "could", "would", "might" or "will"  be taken, occur or be achieved.  All forward-looking statements reflect the Company's beliefs and assumptions  based on information available at the time the statements were made. Actual  results or events may differ from those predicted in these forward-looking  statements. All of the Company's forward-looking statements are qualified by  the assumptions that are stated or inherent in such forward-looking  statements, including the assumptions listed below. Although the Company  believes that these assumptions are reasonable, this list is not exhaustive of  factors that may affect any of the forward-looking statements. The key  assumptions that have been made in connection with the forward-looking  statements include: the completion of final documentation and satisfaction of  usual and customary drawdown conditions with respect to the extension and  increase of the loan facilities; there being no significant disruptions  affecting the operations of the Company whether due to labour disruptions,  supply disruptions, power disruptions, damage to equipment or otherwise;  permitting and development, being consistent with the Company's current  expectations; continued recognition of the Company's mining concessions and  other assets, rights, titles and interests in the Democratic Republic of Congo  ("DRC"); political and legal developments in the DRC being consistent with its  current expectations; prices for diesel, natural gas, fuel oil, electricity  and other key supplies being approximately consistent with current levels;  labour and material costs increasing on a basis consistent with the Company's  current expectations; the increased backfill tonnes and the acceleration of  primary and secondary development will provide access to higher grade zones at  KTO Underground Mine, the successful resolution of the near-term underground  chamber availability issues and all necessary equipment and parts will be  delivered and installed on schedule for Phase 5.  Forward-looking statements involve known and unknown risks, future events,  conditions, uncertainties and other factors which may cause the actual  results, performance or achievements to be materially different from any  future results, prediction, projection, forecast, performance or achievements  expressed or implied by the forward-looking statements. Such factors include,  among others, the actual results of current exploration activities; actual  results and interpretation of current reclamation activities; conclusions of  economic evaluations; changes in project parameters as plans continue to be  refined; future prices of copper and cobalt; possible variations in ore grade  or recovery rates; failure of plant, equipment or processes to operate as  anticipated; accidents, labour disputes and other risks of the mining  industry; delays in obtaining governmental approvals or financing or in the  completion of exploration, development or construction activities, delays due  to strikes or other work stoppage, both internal and external to the Company,  as well as those factors disclosed in the Company's current annual information  form and other publicly filed documents. Although Katanga has attempted to  identify important factors that could cause actual actions, events or results  to differ materially from those described in forward-looking statements, there  may be other factors that cause actions, events or results not to be as  anticipated, estimated or intended. There can be no assurance that  forward-looking statements will prove to be accurate, as actual results and  future events could differ materially from those anticipated in such  statements. Accordingly, readers should not place undue reliance on  forward-looking statements.  The Company disclaims any intention or obligation to update or revise any  forward-looking statements whether as a result of new information, future  events, or otherwise, except in accordance with applicable securities laws.    SOURCE  Katanga Mining Limited  Jeff Best CEO Tel: +41 (041) 766 71 10  Jacques Lubbe CFO Tel:+41 (041) 766 71 10  To view this news release in HTML formatting, please use the following URL:  http://www.newswire.ca/en/releases/archive/March2014/03/c8634.html  CO: Katanga Mining Limited NI: MNG ERN FIELD FIN