KINSHASA, Democratic Republic of Congo, August 11, 2016 /PRNewswire/ --
Fleurette Group ("Fleurette") is pleased to announce the second quarter operating results for Mutanda Mining SARL ("MUMI"), a period during which MUMI has maintained its strong operating performance following significant investment made by the shareholders.
- Copper production of 54,200 tonnes up 1% year on year
- Copper production at the end of the first half of 108.9kt, up over 3% from the same period last year (H1 2015: 105.5kt)
- Cobalt production of 6,000 tonnes, nearly doubling year on year
- MUMI has maintained its strong operating performance and its significant contribution to the local communities. MUMI and KCC (in which Fleurette is also an investor) paid over $531 million in taxes, royalties and other duties to the DRC treasury in 2015
2015 2016 Q1 Q2 Q3 Q4 Year Q1 Q2 YtD Copper metal Kt 51.6 53.9 55.5 55.1 216.1 54.7 54.2 108.9 Cobalt contained Kt 2.6 3.7 4.9 5.3 16.5 4.9 6.0 10.9
During the second quarter MUMI produced 54,700 tonnes of copper (Q1 54,500 tonnes) and 6,000 tonnes of cobalt (Q1 4,900 tonnes), a decrease in copper of 1% and an increase in cobalt of 22% respectively on the first quarter of 2016. Total copper production in the first half was 108.9kt, up over 3% from the same period last year (H1 2015: 105.5kt)
Contribution to the DRC
Fleurette is a 31% shareholder in MUMI, and a minority shareholder in Katanga Mining Inc., which owns KCC (operated by Glencore). Together, KCC and MUMI contributed a total of $531 million to the DRC treasury in the form of taxes, royalties and other duties in 2015.
Dan Gertler, Senior Advisor to Fleurette Group commented:
"MUMI continues to operate at a steady state, maintaining its excellent performance in 2016. MUMI made substantial payments to the DRC fiscal authorities which in addition to the other social investments by the company are uplifting the lives of the people in the Congo. These are challenging times in the resources sector, but we remain fully committed to investing into the DRC, supporting the economic growth of the country and attracting much needed further third party investment. "
Social Investment Update
In 2016 Q2 MUMI's main social investments included:
- Sustainable rural livelihoods - Farming (donation of inputs for vegetables farming campaign; training of cooperatives members)
- Health - Support to Lualaba health zone for vaccinations campaigns (second polio campaign for children) and awareness activities for malaria
- Education - Donation of material for the rehabilitation of UKWELI school
- Local employment: Continuation of cleaning project (hiring of people of surrounding villages for cleaning services via a local contractor)
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 over $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.
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.
SOURCE Fleurette Group