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,
        --  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:

        --  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.


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").


As previously announced:

The Updated Phase 4 Expansion Project commissioning highlights for 2013 
        --  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
        --  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
        --  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).


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 
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CO: Katanga Mining Limited
-0- Mar/03/2014 12:30 GMT
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