Fleurette Group: Mutanda Mining SARL Fourth Quarter and 2014 Calendar Year Production Report

KINSHASA, Democratic Republic of Congo, February 11, 2015 /PRNewswire/ --

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

Highlights 

• Q4 copper production of 46,514 tonnes
• Total copper production for 2014 up 31% to 197,129 tonnes (2013: 150,553 tonnes)
• 200,000 tonnes p.a. capacity expansion projects at MUMI successfully operated during 2014.
• Significant growth in Mutanda copper ore reserves, up 80% to 3.66 (2013 2.03) million metric tonnes of contained copper.

Production 

   
                                   2013                      2014
                         Q1   Q2   Q3   Q4  Year     Q1   Q2   Q3   Q4  Year
    Copper metal  Kt   29.8 31.4 40.3 49.1 150.6   47.1 51.5 52.0 46.5 197.1
    Cobalt
    contained     Kt    2.8  3.6  3.8  3.5  13.7    3.3  3.8  4.1  3.2  14.4

During the fourth quarter MUMI produced 46,514 tonnes of copper (Q4 2013: 49,100 tonnes) and 3,211 tonnes of cobalt (Q4 2013: 3,500 tonnes).

This brings total MUMI production for the 2014 twelve months to 197,129 tonnes of copper (up 31% from 2013) and 14,409 tonnes of cobalt (up 5% from 2013).

The substantial increase in copper production is as a result of the completion of the 200k project, increasing MUMI's production capacity to 200,000 tonnes of copper and 23,000 tonnes of cobalt contained per annum.

Dan Gertler, Senior Advisor to Fleurette Group commented: 

"MUMI is now operating at its design capacity of 200,000 tonnes of copper per year, which has only been made possible by the significant investment we and Glencore have made in its operations. Although the decline in the copper price does impact the operating results, MUMI will continue to generate significant benefits for the people of the DRC. The success of MUMI highlights the importance of attracting much needed investment to maintain and grow the mining sector. We are also delighted to continue our extensive programme of social investments, which are transforming the lives of the communities we work alongside."  

Social Investment Update 

In Q4 MUMI's main social investments were:

• Education - Supported 5 primary schools in the area of Lualaba by providing educational materials, such as books, maps and stationery to supporting learning.
• Health - MUMI collaborates with the health zone of Lualaba to help improve the quality of community health services. We donate various drugs and medicines to facilitate the access to affordable healthcare, especially for vulnerable groups and we also supported training opportunities for medical staff in HIV and malaria.
• Sustainable rural livelihoods - Supported 13 local cooperatives (farming and livestock) with donations and training on farming methods, organizational structure and the importance of savings, in order to support livelihoods and sustainable community development.

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. Fleurette has invested $440 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 is $1.8 billion. MUMI employs over 3,500 Congolese at the current design capacity, and as further investment is made into the asset, we would expect this number to increase.

About Fleurette 

The Fleurette Group of Companies ("Fleurette") is an 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.

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SOURCE Fleurette Group