Fleurette Group: Mutanda Mining SARL First Half and Second Quarter Production Report

KINSHASA, Democratic Republic of Congo, August 13, 2014 /PRNewswire/ --

Fleurette Group is pleased to announce the second quarter 2014 operating results for Mutanda Mining SARL ("MUMI").

Highlights  

• Q2 production of 51,500 tonnes
• Total first half production of 98,600 tonnes
• Mumi has now reached capacity production rate of 200,000 tonnes copper per year, reflecting $1.8 billion investment made by shareholders
• Global Power Project, adding 450MW of electricity, including additional 50MW to National Power Grid, on track.

During the second quarter MUMI produced 51,500 tonnes of copper (Q1 2014: 47,100 tonnes) and 3,789 tonnes of cobalt (Q1 2014: 3,300 tonnes) respectively. This is an increase of 9% for copper and 14% for cobalt, compared to the first quarter of 2014. For Q2 2013, production of copper was 31,357 tonnes and cobalt production was 3,540 tonnes.

This brings total MUMI production for the first half to 98,600 tonnes of copper (up 61% from H1 2013) and 7,089 tonnes of cobalt (up 11% from H1 2013). For 2013, total production of copper was 150,600 tonnes and cobalt production was 13,700 tonnes.

MUMI comprises the Mutanda and Kansuki concessions in the Katanga province of the Democratic Republic of Congo which were merged in July 2013. MUMI is jointly owned by Glencore (69% ownership) and Fleurette (31% ownership). MUMI is managed by Glencore who also have a 100% offtake contract for all copper and cobalt production.

The substantial year-on-year increase in production of both copper and cobalt at MUMI is as a result of the completion of the Phase 4 project, increasing MUMI's production capacity to 200,000 tonnes of copper per annum.  

Fleurette has invested a total of $420 million in acquiring and developing the asset in partnership with Glencore. This has driven production from 100,000 to the current run rate of 200,000 tonnes of copper per annum. The total investment in Mumi now stands at $1.8 billion, which includes the investment program for the rehabilitation and installation of 450MW of additional power (the Global Power Project), of which it is currently estimated that 50MW will be made available to SNEL for distribution onto the National Power Grid, powering homes and local businesses. Mutanda employs over 3,000 Congolese with plans to recruit more as the project continues to expand.

Dan Gertler, Senior Advisor to Fleurette Group commented:

"The success of MUMI shows the importance of foreign investment into the DRC's mining sector. Together with our partners we have invested $1.8 billion into the asset and achieved strong production growth, which has considerable benefits for the DRC in terms of increased royalties, taxes, employment and other social investment. This is the kind of investment the DRC needs to continue to lift itself out of poverty as it recovers from years of conflict."

Fleurette is pleased to advise that MUMI has financed several community projects in the surrounding Katanga province. The Kisnagani and Pweto hospitals (total investment $9.2 million) which provides five state of the art operating theatres and a total of 177 beds, as well as a number of other vital treatment facilities. MUMI has also made significant investments in local infrastructure including the construction of a second bridge over the Lualaba river ($5 million) and investment in the Kolwezi airstrip. Meanwhile MUMI continues to support local agriculture and education projects, including the refurbishment of the Mwongo school and establishment of an 8 hectare vegetable farm at Kando.

About Fleurette Group 

The Fleurette Group of Companies ("Fleurette") is a Dutch entrepreneurial business with significant investment in diverse sectors, including natural resources, infrastructure, agriculture and technology. Fleurette has substantial investments and operations in the Democratic Republic of Congo (DRC).  The parent company of the group, Fleurette Properties Limited, a Dutch resident company, is owned by Line Trust Corporation Limited strictly and solely as trustees of the Ashdale Settlement, a trust established in 2006 for the benefit of the family of Dan Gertler. Mr Gertler is a citizen and resident of Israel and the DRC (and honorary counsel to the DRC) and is committed to developing the country's natural resources and infrastructure, while investing in the Congolese people and their communities.

Fleurette has a proven track record of successful co-operation with diverse parties, including the DRC State-owned mining company Gécamines, and to date has brought more than USD $7 billion of investment into the DRC, on top of its USD $2 billion in private investment. As a result, Fleurette's subsidiaries and partnerships support around 30,000 jobs in the DRC and are amongst the DRC's leading taxpayers, contributing significant revenues to the State.

Fleurette is also a major contributor to social development in the DRC through the Gertler Family Foundation (GFF) and through direct investment in social infrastructure. The GFF is the largest charitable organization in the DRC, funding more than 50 programs and projects across the DRC, which help tens of thousands of Congolese every year.  These include rebuilding key hospitals, notably the Kisangini "Hospital du Cinquantenaire"; supporting the Operation Smile campaign in Lubumbashi and Kinshasa; rebuilding Blaise Pascal School in Lubumbashi; and supporting the Lubumbashi Zoo.

Food security is a critical issue for the DRC and in Kinshasa, Fleurette is developing 1,482 acres of land into the Kitoko Food Farm in partnership with local and international organizations. The farm is expected to employ 400 people and is expected to produce more than 4,500 tons of carrots, tomatoes, onions, potatoes and other vegetables in 2014.

Further Information: Peter Ogden/Andy Donald, Maitland, +44-20-7379-5151