DEMOCRATIC REPUBLC OF CONGO KATANGA PROVINCE
FEASIBILITY STUDY &TIMELESS REPPORT OF
PR 11106, 11107, 11108, 11109
JANUARY 2010
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AFRICA
MAP 1 AFRICA
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DEMOCRATIC REPUBLIC OF CONGO
MAP 2 DEMOCRATIC REPUBLIC OF CONGO
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KATANGA PROVINCE
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INTRODUCTION
This project study outlines a project mine located in the Copper belt province of
Katanga Democratic Republic of Congo in Central Africa. The copper deposits of Katanga were
discovered early last century by prospectors Belgian and English. Different companies working
mainly for holding Belgian or British were active in the Congo. Union Minière du Haut
Katanga certainly played a role in the mining of copper and cobalt in the Copper belt
province.
The deposit for the project described in this pre-feasibility study, is a deposit of less than
world class. It totals about that 450,000 tonnes of copper and 20,000 tons of cobalt content. The
Congo gained its independence June 30, 1960 and January 1968 the Union Minière is
nationalized. A new company called Gecomin then Gécomines and finally Gécamines was
created to ensure the continuity of their exploitation. In 1986 production Gécamines reached a
maximum of 476,000 tonnes of copper and 14,500 tonnes of cobalt and in 2002 the results were
20,000 tonnes of copper and 4,000 tonnes of cobalt. If the general climate uncertainty that
characterized the last two decades has ruled out the possibility of institutional and private
investment over 15 years in the Congo can say today that several very positive signs indicate
that it is again possible to consider safe and profitable investment.
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The accession to power of President Joseph Kabila who succeeded his father Laurent
Desire Kabila has caused a radical change in the landscape and customs policies of the country.
Ituri. Moreover, the government does everything they can to be recognized as a genuine rule of
law. A New Mining Code was enacted to attract foreign investors. He was drafted by a team of
experts drawn from government, the World Bank, the business nationally and internationally as
well as countries with strong mining tradition, such as Chile. We can say now that the New
Mining Code and its corollaries, to Mining Code Regulations and the Mining Cadastre; mining
tool suitable are required by any professional investor who wants to develop and secure a
mining project in Democratic Republic of Congo.
It is also worth mentioning that everyone believes that the internal rate of return of 20%
is a normal lens. This document is the pre-feasibility study of project Kitanda. This is a classic
mining project in the area of non-ferrous metals. The document's purpose is to define a
framework for designing and working to guide project development. Moreover, the current
analysis, is clear the very significant impact of the project for the state and neighboring
communities.
SUMMARY FOR EXECUTIVES
The deposits of Katanga have the reputation of being very rich. The words spoken long
ago by, or at least attributed to Jules Cornet geologist who even reported a geological scandal,
so the deposits are rich, has always attracted investors. However it must be well aware that even
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if the deposits are actually among the richest in the world, all the techno-economic parameters
reduces their potential and thus makes them attractive to investors a little less interesting. In any
case we can afford to work without resorting to the most effective techniques to compensate for
factors "unfavorable" by productivity and efficiency increased. Among the unfavorable factors
should be mentioned in particular the physical isolation in the middle of Central Africa, a
complex and variable mineralization does not allow defining a single metallurgical process and
finally, the mining plan, a high stripping rate doubled sometimes difficult to exhaust. Among the
positive factors we must insist on the high metal content of ores, the presence of sufficient
potable and industrial water and the presence of a skilled and productive as long as the
traditions of leadership and laws of the labor market are met and that we put up an adequate
social support. Assumptions unfavorable progress as well as estimates rather exaggerated export
costs was included in all economic calculations in order not to show an excess of confidence or
optimism inadvisable.
ENVIRONMENTAL AND TECHNICAL DATA.
1. GENERAL DESIGN, LOCATION AND JUSTIFICATION.
a. General Design
This project lies within the sound development of the mining industry of the Democratic
Republic of Congo to play through it a leading role in reviving the national economy, according
to the legislature's concern that defined the legal framework of the New Mining Code to achieve
this goal. . As mentioned earlier the project fully respects the New Mining Code.
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b. Location
The site is located Kitanda more months or 725 km northeast of the city Lubumbashi
Kolwezi. It is accessed via the national road No. 628 leading from Lubumbashi in the Eastern
Province from the North Katanga before the junction to the Manono city as you leave the
village level Kalumbalumba westward on a track twenty kilometers. This site is located within
the new Mining Code in 11106,11107,11108,11109; but only 11107 and 11108 have given the
good results in the exploration program of this area off the PR of 631,4 square Km cadastral.
This area is bounded by the vertices whose geographical coordinates are:
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REGION 5 MAP KITANDA (location)
c. Justification.
The importance of the mineral potential of the Democratic Republic of Congo, which is
a well known fact, not only specialists but also to the public interest that justifies the many
potential investors are in the province Katanga. However it should more than ever to work in
the most efficient order to keep costs below cost in the international supply and thus ensure a
profit margin to ensure repayment of investment and profit rates adapted to industry and the
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mainland. It was by digging exploratory wells arranged in lines oriented NE-SW, 50 m apart, in
the alignment of the extension instance LUFUKWE''''is known for its mixed copper ores and
Silver .
Wells acknowledged tabular formations of Katanguian, here represented by the
Kundelungu levels 2.2Roan ks. These formations are stratified dolostones similar to those of
Roan (SD) but for layering mineralization contain copper oxide (malachite and Chrysocole) in
the bedding planes. A secondary remobilization following the establishment of a set of fault
causes an enrichment result of this mineralization. The presence in money trail suggests the
hypothesis of enrichment by hydrothermal fluid. RATRSFRSCSD of baseCMN
2. TECHNICAL DESCRIPTION.
d. Geology, topography, design and mine planning.
Modern technology, making use of tools have been used to draw in three dimensions,
and plans cuts in the geological model that has qualified and classify not only training but also
the mineralized rocks rock and groundwater levels. The same software was also used for
compiling all the topographical data and then to establish the pattern of the final pit finalefosse
well as various intermediate pits. e. Land and general accommodation
01. Land "generalities"
Katanga Province is located in the heart of Africa in the south-eastern Democratic
Republic of Congo. It adjoins the north Kivu region, north-west region of Kasai and shares
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borders with Angola to the west, Zambia to the south, Tanzania to the east. Although
qu'enclavée the heart of Africa, various railway lines, roads and lakes and waterways provide
relatively easy access to the ocean. An internal infrastructure of communication facilities (roads,
paths fer, Inland River and lake, and airports) is an additional logistical support, essential to
economic development in the region.
The development of Katanga took place around a former mining flourishing his
basement full of metals such as copper, cobalt, zinc, cadmium, plomb, uranium, manganese,
nickel, tin, gold, silver and other rare metals (palladium, platinum, germanium, gallium,
selenium, niobium, tantalum ...).
Built around a network of production and distribution of hydroelectric energy efficient,
this historic mining activity is a real pole of development and remains the basis of important
industries, particularly in respect of rolled products and wire, cimentciment, coal, lime,
limestone, construction aggregates, quartzite, sulfuric acid, civil engineering, wood, textiles,
soap, food, commercial products of all kinds...
For effect and in support of these activities, medical facilities, social and general
education, primary and secondary technical and university have developed and used to have in
place a skilled workforce-oriented Industrial. The persistence of some traders as well as efforts
to stabilize the country has boosted the economic machine, including through new ideas that
create jobs.
02. Geology
(1) General
The important metallogenic province of Central Africa consists mainly of stratiform copper
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deposits-corallifères spread over 500 km in the Democratic Republic of Congo and Zambia.
Katangan sediments, which contain these deposits are Proterozoic and higher were deposited
discordantly on the base Prékatanguien, probably in a pool-type continental rift. Several recent
works of synthesis have gathered the essential characteristics of sedimentology,
lithostratigraphy and sediment Katanguian metallogeny of Central Africa. In this classic model
of copper-cobalt deposit can be added another which is linked al'existence of major faults. This
is the case in Zambia Kansanshi Dikulwishi and North Katanga. The difference between these
two deposits is based on the contribution of the hydrothermal Dikulushi demonstrated by the
presence of silver in ores. The deposit is now presented is closer to that type.
(2) Stratigraphy
The copper-cobalt occurrences existing in the southern Katanga belong System Katanga. This
unit, which was deposited during the Proterozoic era (between 1200 and 650 million years)
forms a solid pleated called Katanga Copper Arch, which lies between Angola to the west, and
Zambia south-east. Katanga The system is a set of thick sediments of about 7000 m of upper
Proterozoic age (between 1100 and 650 million years). It is divided into three great groups:
bottom-up, RoanRoan (1,500 m), Kundelungu lower (3,000 m) and Kundelungu higher (2,500
m).
The copper-cobalt deposits of Katanga may have formed following the deposition of
pyrite in the core group Roan R2 (MinesGroupe Group of Mines). Fluid copper-cobalt would
result in very locally through the salt level between the Roan R1 of R2. One or two orebodies
would thus formed, thick about 20 m in total, containing about 4.5% copper and 0.3% cobalt as
sulphides (cuprite and small carrollite). Near the surface, minerals are altered by water runoff,
water level up. The sulphides are converted into carbonate (malachite #), silicate (chrysocolla)
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and oxide (heterogenite). They also invade the surrounding rock formations. So break out the
rich ores (greater than 10% copper and 1% cobalt) that can be treated without prior enrichment.
The progress of the Katangan mégabrèche has been hampered by the North Channel is
Kibaran Mesoproterozoic creating beyond the arc Lufilian a package of Katangan who
remained tubular. The action of late phases of orogenesis Katanguian and the loosening of
constraints have allowed ascent of hydrothermal fluids, which has led the development of vein
type deposits in the Katangan type tabular. These deposits are in northern Katanga contain
mainly sulphide type Cuprite accompanied by silver minerals. The deposit was discovered
following an exploration well in small as well as some work sondage Kolwezi. Some wells have
been altered ore in a sort of breccia body now moving away from conventional.
They are in a plain, covered by a few yards of red clay alteration without clearing
poisoning. The tonnage of ore available could be very high (18,000,000 tonnes for the first
tranche of 100 m). The tonnage of reserves quoted above represents only a first phase of a
project. Many surveys will be drilled to provide reserves "some" sure that will be a project more
complete. The river is close Kitanda the reservoir, the water table is near the surface (probably
between 30 and 40 meters).
If searches are successful, we can recover a small tonnage of ore rich altered. For cons,
the gangue minerals in normal unaltered who give very good returns to the flotation, will be
quickly achieved and therefore exploitable. Two continuous conglomerates, probably of ice, can
divide the System Katanga into three units: Above, the super-group Kundelungu higher Ks:
approximately 2,500 m of clastic sediments (shale, sandstone and dolomite microgra) of marine
origin, At center, the Super-Group Kundelungu lower Ki: approximately 3,000 m of sediments
of marine origin also with the middle of the bottom half, a calcareous dolomite formation whose
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thickness can vary between 0 and 250 m, called limestone Kakontwe " Underneath the super-
group Roan R: about 1,500 m of impure dolomite, shale and sandstone dolomitic lagoonal
origin. This is the most interesting part of the System Katanga because there are more than 95%
of known occurrences of copper in Katanga.
(3) Metamorphism
The metamorphic rocks are low in the copper arc. We are in the epizone. It is strongest
in the south of the Arc and in Zambia, with the onset of greenschist facies and amphibolite
(mésozone).
(4) Tectonics
Left subhorizontal north, the System Katanga was heavily wrinkled further south,
along and beyond the Arc copper. A first phase of folding, called "the Kolwezi", occurred while
the middle part of Kundelungu than was deposited. It was shown by anticlines spilled
northward or overlaps oriented from south to north, as well as a major thrust in the Kolwezi
region. A second phase of folding, called "the Kundelungu" took place later, when everybody
has filed Kundelungu higher. It was shown by anticlines spilled southward or overlaps oriented
north to south.
In addition, there are irregular masses of Roan that sink deep between two walls of rocks
younger age of Kundelungu lower or higher along major faults. These structures, called
"extrusion", locally cut the folds. They may belong partially to a final tectonic phase, called "the
Monwezi. The results of these tectonic events are clearly visible on the design of a cutting along
the meridian to joining Shinkolobwe, Kambove.En. In addition to a map of regional structures
we can see that the Shinkolobwe deposit (Cu-U) is on the same alignment and deposits Dikushi
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north and Kansanshi in Zambia.
(5) Metal mineralization
The copper-cobalt mineralization is stratiform classic and is distributed according to
two "ore bodies (OB) well-defined, thick every few meters to ten meters or more. Both ore
bodies lie at the base of the Group of Mines Groupe (Roan R2), on both sides of the level
RSCRSC (cellular siliceous rock and stromatolitic dolomite) whose power is variable. Primary
copper mineralization consists of disseminated sulphides (chalcopyrite, bornite, digenite ...)
implemented in the sediment during the period of diagenesis. The sulphide mineralization has
been greatly enriched and / or remobilized by hydrothermal and supergene alterations. The
primary cobalt was associated with copper to form the carrollite and monitoring copper in the
process of secondary enrichment.
The action of weathering may alter significantly the mineralization, enrich or washing
and having varying intensity with depth Other occurrences are finally listed in DiPetta,
Kundelungu brackets. With the exception of deposits containing zinczinc of plomb and copper
Kundelungu lower (Ki? 1.2) to Kipushi, Lombe and Kengere, these occurrences are usually not
usable.
(6) Qualification and classification of minerals.
The current classification includes several categories of minerals and takes account of
the content:
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- Total copper and total cobalt, Copper in the form of oxides, silicates, phosphates,
sulfides, Cobalt in the form of oxides and sulfides, Soluble lime (CaO). The cutoff between
low-grade ores and ores is recoverable fixed respectively at 1% and 2% for copper and
respectively 0.5% and 1% for cobalt. An ore is considered when dolomitic lime content soluble
(CaO) is greater than or equal to 0.4% or possibly when the content of soluble lime (CaO) is
greater than the fifteenth of the total content of copper. The dolomitic oxide ores contain up to
0.5% as copper sulphide and sulphide ores to 0.5% as copper oxidized ores were mixed levels
between these two limits. (7) Methods of stock assessment The exploration works, trenches and
small pits, underground workings (shafts and tunnels) and criss-cross the field surveys at a grid
spaced 50 meters. These books have been removed, reported on plans scale topographic 1/1.000
th, described and sampled.
The data that were collected resulting in records of surface exploration, underground
works and surveys. Diagnoses and outcomes have been or will be carried over geological plans
drawn to scale 1/1.000 second. However all data currently available have been compiled on the
geological model (using the software SURPAC) to provide ongoing assessment of reserves,
both quantitative and qualitative. The geotechnical and hydrological information are also
compiled to provide a good image of the entire deposit, ore and waste rock formations included.
Note that the topographic information is also included which allows to establish all the
necessary floor plans, including the location of infrastructure. 03. Land 'geology of the site "
Two concepts can be considered for the mineralization in this scenario:
1. There is a copper mineralization in the form of oxides (Malachite, Chrisocole,
Azurite. ...) Contained in the bedding planes from one level of dolomitic shale in the super
group Kundelungu we believe to be the level KS1.2. It is an alternation of dolomitic shale and
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clay. It should be noted here that these are the channels that are mineralized dolomitic.
2. The presence of families of reconstructions as part of a family that has quently
bearing deposits Dikulushi. These faults are sites of enrichment of the mineralization as a result
of remobilization, but also may be due to hydrothermal input which remains to be demonstrated
by a good study of mineral parageneses. The fact of the presence of these faults that sulphide
minerals (bornite, chalcocite ...) who find themselves in principle beyond the water table is
found here has very low depths. The above shows that this deposit is in a completely different
mineralization classical copper-cobalt. It deserves further studies are planned for a later phase
04. Land "notes prospecting"
(1) Location within the concept Katanguien As was mentioned above, the area referred to in
this study is located entirely beyond the arc copper Katanguian. In addition, part of Katanga's
best known and studied remains the South (the copper arc). We say here that the area is located
in the package Katangan tabular remains after all these orogenic movements described above.
From structural point of view, the industry bears the signs of late stages of orogenesis Katangan
who gave birth to two main families of faults which are the remains sequent namely: NE-SW
and NW-SE.
These issues are often very deep, with large extensions are sometimes the seat extrusions
formations underlying the supergroup of Roan as is the case just north of this area with the
occurrence of Lufukwe . Our pool is part of recent discoveries of copper beyond the traditional
copper arc, thus complementing existing ones.
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Fig. 4.Aspect Geological of S.C. Mining PR
(2) The deposit Kitanda
Taking advantage of recent work on the perimeter PR 8569, it was revealed an area of
abnormal concentrations of copper which current knowledge enabled the development of a first
draft. What is known at this stage Tungwe''deposit''is only part of which will be used again in
evidence after a detailed field survey.
This hypothesis is supported by the existence of a family of fault in which the deposit is
found. Methods of ground geophysics as''CT''(time domain magnetic) will be a party to confirm
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the continuity fault. Soundings along this fault allow increasing the volume of reserves. At this
stage the deposit consists of an open fault of + /-50m wide and can be traced over a length of
over 1500m. This loophole was put in place in formations known as the super group of
Kundelungu some of which are also copper mineralization mainly in terms of stratification. If
that continuity is proven, this deposit will provide us with very large tonnages of copper and
cobalt (for open pit mines deeper than 100 m, a rough calculation gives 18,000,000 tons of ore,
or 400,000 tons of copper and 20,000 tonnes of cobalt #).
Fig. 5: Location of Site Kitanda on PR 8569
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A geochemical survey helped identify an anomalous zone which is the current phase of the
project. The copper geochemical anomaly has been an open window on the potential that is yet
hidden. We assume that the continuity of the fault is a blind pool.
Fig.6: anomaly map copper
This anomaly area was first explored by small pits and then by some polls destructive and
carrots that have demonstrated the vertical continuity of the anomaly.
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Fig.7: location of works
05. Land "Pathways" Katanga The region is located in the heart of Africa. It is accessible by air,
but it is also connected to the oceans by four railroads and three roads. As indicated above, the
isolation factor is a negative aspect, however important that may be better managed or
neutralized before taking advantage of modern communication and information as well as air
transport for non-bulky items. (1) Airway Lubumbashi is served by an international airport
equipped to receive commercial jets, he hosts including flights from Europe via Kinshasa and
from Southern Africa. It is the nearest airport to our site. Kolwezi (2) Railways Such transport
involves certain sections mode river or lake. Until the late 1980s, it provided almost all the
transport for export and currently he is penalized by the situation SNCC (Societe Nationale des
Chemins de ferfer Congolese) and ONATRA (National Transport). The railway is the closest to
our site is connecting Lubumbashi Likasi. (a) Route Matadi (or national route) This route is
located entirely in the territory of the Democratic Republic of Congo. Since 1993, exports by
the national route are virtually nil due to multiple fractures load (rail from Lubumbashi to Ilebo,
Ilebo barges and rail to Kinshasa from Matadi to Kinshasa) and a quality problem of logistics.
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(b) Route of Dar es Salaam (via Kalemie)
This route crosses successively the Democratic Republic of Congo and Tanzania. This pathway
knows several of reloads to Kalemie (Democratic Republic of Congo) and Kigoma (Tanzania)
for the crossing of Lake Tanganyika. Since 1993, exports are practically nil. (c) Route of Dar es
Salaam This path uses the path of ferfer TAZARATAZARA to the port of Dar-es-SalaamDar-es-
Salaam.
(d) Channel LobitoLobito This path connects directly factories KatangaKatanga Harbor
LobitoLobito (Angola). This fast track has been closed since 1981. (e) Lane South This way
allows to connect the plants to various ports in South Africa and Mozambique. The transport of
inputs and out of the site will be generally as much as possible by rail given that this mode of
transport should normally be the cheapest
3) Inland road
To overcome the difficulties of growing network of railroads in the Democratic Republic of
Congo, traders have used the road for their exports and imports. In 1993, transportation
accounted for almost all of the tonnage exported. It is clear that it will make every effort to
reduce its use. (a) Road to the south This road is known for its speed and safety. (b) direct route
to Dar es Salaam This road is called TANZAMTANZAM very fast, but often penalized by high
waiting times at the port of Dar-es-Salaam.Dar-es-Salaam (4) Lake Lane The position of this
sector of Lake Mweru closer or you can use to go to Zambia.
This position is not yet profitable because of a lack of energy that requires finishing
trade products at plants in Lubumbashi. ? Land "climatology" The region Katanga is subject to a
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subtropical climate characterized by six months of dry season (April to September inclusive)
alternating with six months of rain season (October to March inclusive).
(1) Air temperature in the shade under shelter the highest temperatures were recorded in
October and November and may reach 37 to 40 ° C. During the dry season in June and July, the
night temperature may drop to 5 ° C and may reach 0 ° C in exposed sites. The average monthly
total since they are high enough fluctuate between 16 ° C (June) and 25 ° C (October). In dry
season that variations in daily temperature are most important. The average of these differences
is around 17 ° C, with maxima around 25 ° C.
` These sudden variations in temperature give rise to significant condensation which must
be taken into account in the technical specifications for purchase of certain equipment (eg
electrical panels).
(2) Relative humidity of the air the climate is characterized by the alternation of long periods
when the humidity is low (daily minimum of about 5 to 6% during 6 months of the dry season)
and long periods of high humidity, frequently since close to saturation during the six months of
the season . The average monthly values of humidity fluctuated between 40% (September) and
82 to 84% (December to March).
(3) Wind the Katanga is subject to trade winds from the Indian Ocean. They are regular and
constant. Two periods are distinguished, corresponding to the two seasons. During the dry
season, winds are quite strong and blowing in a dominant manner the area between the east and
south. Winds from the south-east are the most frequent and they blow with an average speed of
40 km / h and peaks up to 75 km / h. exceptionally, gusts of wind speeds exceeded 120 km / h
have been recorded in the region Kolwezi.
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The structures, as well as electricity pylons and masts must be provided to withstand
"winds" of 220 km / h. During the season rain, the system is reversed. The winds are weaker
and generally blowing in the area between the north-west and south-west, with an average speed
of around 25 km / h and reaching 40 km / h. By cons important gusts over 100 km / h above the
often violent thunderstorms. In dry season, winds cause a significant amount of dust. The
construction of facilities must reflect this characteristic, because it constitutes a nuisance for
mechanical and electrical equipment. This season is marked by a generally serene sky.
(4) Rain the fall as often as stormy precipitations except January and February. The
height of water collected during a downpour of short duration, extrapolated over an hour, up to
80 mm, and exceptionally 100 mm. The average height of water collected in the entire
concession Gécamines during 6 months of rain season is approximately from 1.200 to 1.250
mm and about 1.160 mm to Tenke, the maximum monthly up to 400 mm. During this season,
cloud cover is generally high, especially late at night and at dawn. Thunderstorms are frequent
and excessively violent. Isokéraunique level is 150 (over 6 months). Effective protection against
lightning shall be provided whenever the latter is likely to disrupt or cause damage to energy
installations électriqueénergie electrical and network. The earthed should be particularly careful,
well maintained and regularly measured.
(5) Sunshine The average annual relative (compared to the maximum possible
astronomical) is around 60%. (6) Altitude The mining area of south Katanga lies at an altitude
between 1,000 and 1,500 meters above sea level altitude Kitanda is 1219 m above sea level.
(7) Earthquakes the risk of earthquake land is low and despite the relative proximity of
the fault of Tanganyika. So far, the cases have been recorded; the intensity remained below 5 on
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the Richter scale.
(8) Flood Certain Plains untrained can be seasonally flooded.
06. Land "environnement technology"
(1) Electric power A disadvantage of factors for this project is the lack of electricity.
Indeed the distribution of electricity in Katanga was made around the mine site known for
decades, leaving the greater part of the province without electricity or even without any hope of
electrification. Some companies had to compensate for this deficiency by building small
hydropower self. This is where e Manono and Mitwaba. For our site, the easiest way would be
the use of generators of industrial capacity as possible avoiding large facilities on site. (2)
Telecommunications We may use solutions of most common (earth stations of small capacity
type VSATVSAT connected to Inmarsat, the local GSM network), but less good performance,
much more costly and difficult to fit corporate communications to high traffic volume. (3)
General Arrangements As soon as the geological model will be established, it will
possibleprojet Mining define the final pit, pit the final location of landfills and tailings ore to the
desired distance of safety, as well as offices, garages, parks, vehicles, maintenance workshops
and manufacturing shops subassemblies and spare parts, fuel depots and reagents, artificières,
fixed installations (post tensionhaute high voltage, loading dock, pumping stations, ... ) and
finally social facilities (clinics, schools, canteens, sports facilities and leisure ...).
3. IMPACT STUDIES ON
ENVIRONNEMENTENVIRONNEMENT
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The new code Mining Code is quite explicit on this issue by specifying the modalities
of intervention of the service charge of environnement mining. In summary, the following:
Defines and implements mining regulations for the protection of, Defines technical terms of
mitigation and rehabilitation of environnement (PAR), the Environmental Impact Statement
(EIEEIE) and the Environmental Management Plan Project (PGEPPGEP) Monitoring the
implementation of PGEPPGEP by the owner. Particular attention will be dedicated to the
creation of mounds of rock open pit that will preserve (by moving them temporarily) the humus
layers for coating finally backfilled areas of the mine when it is exhausted. By following a rule
"first out, last in (back)" we can reconstruct the abundance and dip, the provisions relating to
rocks and land. The storage of waste metals will involve the use of storage with high vegetation
cover to prevent the pollution of rivers and groundwater once too often observed in this region,
since it uses the natural valleys with levees Monks and # to store the waste. Wherever possible,
industrial water will be used in closed circuit with a system of purification and regeneration
thereof. The provision for recovery of the site under the New Mining Code of 0.5% of sales will
be used and supported by the project.
4. STUDY AND REALIZATION
1) Program of Work and Time Frame several alternatives have been proposed to
develop the project. The most effective way would be to develop the project at once up to his
optimum size to exploit the full deposit less 15 years not to exceed a reasonable period and to
take advantage of an operation optimum size. A smaller project, requiring a call for funds less
important, however, was chosen as the initial step to demonstrate that it is possible to quickly
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start a profitable project.
The development of the total project, including its reduced phase has been designed to
reach the production stage and therefore the collection of revenue as quickly as possible and the
best market conditions. A bankable study will be conducted in order to optimize the project and
provide greater distance call. This stage is divided into two sub-steps that can be either succeed
or be undertaken simultaneously. (4) "Study bankable study bankable" This step includes pre-
feasibility study (including the campaign of exploration by pits and trenches) and the study of
faisabilitéfaisabilité (including the campaign of core drilling and completion of metallurgical
testing laboratory and pilot plant piloteusine). The term "bankable study bankable study is 24
months and its budget is estimated at 3.9 million U.S. dollars. The purpose of these independent
studies will be to reassure donors about: Geological reserves, Mine plan, Flow-sheets of metal,
In engineering, Preservation of the environment, From the study of the social fabric of market
research (5) "Project reduces project reduces" As mentioned earlier, this "project reduces
reduces project" will be profitable, without any dependence on towards anything and will have
a short repayment period (about three years). All equipment purchased and used under the
"project reduces project reduces" find a "second" use in the project finalprojet final. The
budgetary cost of the "reduced project reduces project is in the range of $ 5.0 million including
all investment and working capital required to start production and marketing. The main
objective of this step will allow to appreciate the extent of the risk by observing the actual
evolution of the project and better understand the validity of the transaction bankable by
exposure to a minimal risk because the flow cash "project reduces reduces project" will largely
cover the expenses later. This "project reduces reduces project, which has an impact on the
initial cash flow, will be used to develop operating procedures of the company with the project
27
and assist in serving living reference, the operation of lifting funds for procurement of project
finalprojet final. 07. "Finalprojet final draft" This step is of course the ultimate goal to start
production at industrial level best to exhaust the deposit within 15 years. The hypothesis to
require 24 months of time to procure equipment, carry out and start editing facilities may be
considered realistic. The budgeted cost is approximately $ 85.0 million.
08. Stages of project start.
(6) In Development "series"
All stages of the project are realized as a result of each other without overlapping. The
development time is 80 months.
28
(7) Development in "parallel"
Two stages of this project overlap. The development time is reduced to 60 months.
Table 2 Development in "parallel"
It is likely that the actual development of the project will be between the two schedules shown
above because the decision to move forward more quickly can be taken only when the "reduced
project reduces project" has shown sufficient signs positive returns.
09.
29
Total project
Table3 Project Planning
5. ESTIMATED COSTS AND ESTIMATES (BUDGET)
It is in fact first estimate the level of total investment (included studies) will be required,
as well as the initial working capital to start production. It will also then estimate the level of
operating costs to assess the profitability of the project. It is therefore to estimate the amount of
capital to be borrowed and repaid, CAPEX (capital expenditure) and OPEX (operating
expenditure) to cover all expenditure to be incurred prior to starting production. f. Expenditures
of the "due diligence" (first year) The first category of expenditure for the study phases of due
diligence due diligence, which will be part of feasibility studies and faisability. According to the
New Mining Code, these expenses can be amortized over two years since the project began. It
will be the same for engineering studies and environnementenvironnement.
At this stage the operating expenses of the type included in studies and in related
activities can be regarded as investment. The burst of spending will be in accordance with the
rules of conventional development budgets. This is a summary of expenditures for labor,
procurement of hardware, internal services and external services.
The first tranche of expenditure ( "due diligence due diligence, exploration by pits and
trenches) will be followed by a second installment on the feasibility study (exploration by core
drilling and laboratory tests and pilot plant), all of which must be completed by the end of the
third year.
g. Project Expenses reduced (first and second years)
30
these expenditures related to assembling and launching the project which will start
reducing in the middle of this year. Regarding the studies, activities long period of
implementation will be initiated at the right time to "take" to advance and ensure they are
completed by the end of the third year.
h. Expenditure of the bankable study (second and third years)
This time of intensifying phase core drilling that will certify bankable reserves and
eliminate any residual risk of geological uncertainty could derail the project.
i. Total Project Expenses (fourth and fifth years)
This makes the heavy investments that can not be determined if the handling of the
project is confirmed and guaranteed by the studies faisability. Start a large mining project in 5
years, with an initial draft of reduced performance and is therefore an objective to be necessary.
However it is important to be able to take decisions in successive and sequential knowingly so
that decisions on major investments are made only after having eliminated all the technical
uncertainties.
j. Detailed summary of expenditures by year
31
Table 8 Expenditure of the first five years
6. MINING - DEFINITION OF MINING PROJECT
k. Geological reserves (geological model).
The decision to consider the operation of a mine site is based primarily on the type of
historical information or the results of a large survey by seismic or other methods.
Once this first stage it is possible to get an idea of metallurgical treatment to implement and
how we will market the products to be extracted and recovered.
There are actually rules of thumb which can include words in terms of content and
according to specific parameters that the mining operation of a specific site can be profitable.
We launch at the time a drilling core (in general) to better define the orebody in space and
also to better know the characteristics of those ore and host rocks and the location of the water
table.
The geologist then began work compiling all data available.
Tranches CoupuresVOLUME
TOTAL d T.Minerai Teneur Moy T.Metal1250-1240 0,5 239850,00 2,00 479700 1,417069001 6797,68
1 144550,00 2,00 289100 1,630508475 4713,82 19550,00 2,00 39100 4,53657289 1773,85 10800,00 2,00 21600 6,3 1360,8
1240-1230 0,5 796500,00 2,00 1593000 2,862404269 45598,11 612500,00 2,00 1225000 3,416326531 418502 376200,00 2,00 752400 4,968532695 37383,245 275000,00 2,00 550000 5,765672727 31711,2
32
1230-1220 0,5 1112600,00 2,00 2225200 2,730669603 60762,861 938400,00 2,00 1876800 3,125539216 58660,122 581000,00 2,00 1162000 4,28292599 49767,65 278400,00 2,00 556800 5,402708333 30082,28
1220-1210 0,5 1393150,00 2,00 2786300 1,999885152 55722,81 1017000,00 2,00 2034000 2,52006883 51258,22 403700,00 2,00 807400 4,569643299 36895,35 172200,00 2,00 344400 7,090905923 24421,08
1210-1200 0,5 1256500,00 2,00 2513000 1,785142061 44860,621 920400,00 2,00 1840800 2,227470665 41003,282 233650,00 2,00 467300 4,839625508 22615,575 175000,00 2,00 350000 5,254285714 18390
1200-1190 0,5 995000,00 2,00 1990000 1,881508543 37442,021 730000,00 2,00 1460000 2,350617808 34319,022 284500,00 2,00 569000 4,264903339 24267,35 120000,00 2,00 240000 7,19 17256
1190-1180 0,5 708750,00 2,00 1417500 1,505026455 21333,751 381750,00 2,00 763500 2,138212181 16325,252 277750,00 2,00 555500 2,498586859 13879,655 21750,00 2,00 43500 7,19 3127,65
1180-1170 0,5 717750,00 2,00 1435500 1,195757576 17165,11 247000,00 2,00 494000 1,902591093 9398,82 193000,00 2,00 386000 2,06 7951,65 0,00 2,00 0 0 0
1170-1160 0,5 507300,00 2,00 1014600 0,974825547 9890,581 218500,00 2,00 437000 1,286814645 5623,382 31900,00 2,00 63800 2,04 1301,525 0,00 2,00 0 0 0
1160-1150 0,5 410500,00 2,00 821000 1,052971985 8644,91 67500,00 2,00 135000 1 13502 0,00 2,00 0 0 05 0,00 2,00 0 0 0
1150-1140 0,5 336350,00 2,00 672700 1,300267578 8746,91 206350,00 2,00 412700 1,615192634 6665,92 99600,00 2,00 199200 2,17 4322,645 0,00 2,00 0 0 0
1140-1130 0,5 42500,00 2,00 85000 0,59 501,51 0,00 2,00 0 0 02 0,00 2,00 0 0 05 0,00 2,00 0 0 0
TOTAL 0,5 8516750,00 2,00 17033500 1,86 476466,811 5483950,00 2,00 10967900 2,47 271167,752 2500850,00 2,00 5001700 4,00 200158,225 1053150,00 2,00 2106300 6,00 126349,01
33
l. Development of the mining project
This is the "pit design" or design of the mining project.
The problem is also multiple inputs and multiple outputs. It will be a series of round trips to
define the design that best corresponds to the optimization of all constraints.
A logical sequence would be to first define the products they will sell in quantity and quality. It
is actually assessing what the market can absorb. We then define the type of metal to be applied
depending on the nature of minerals and outputs.
I n this project, the annual call mine would be 25,000 tonnes of copper contained in ores
fed. It is obvious that the presence of secondary metal, cobalt, provide further enhanced.
m. Fosse final (ultimate pit.)
The call mine is fixed, we must define the final hole which should allow to
extract the maximum ore known. It never changes or at least very rarely configuring a final pit
made recarrages very important that there should be consent. Recarrages These are also difficult
to achieve because they involve usually operate under very narrow sites.
For shallower deposits, we will determine the final level based on an initial
review of floor plans.
If the reservoir becomes narrower in depth they will stop operations by ensuring that the final
level will be long and wide enough to allow the development of mining equipment chosen.
So there is already a relationship between the gear available (or buy) and the proposed quarry.
34
n. Mineral Reserves
Once the final career is drawn, we calculate the extractable mineral reserves
contained in the space of the open pit. They are only part of geological reserves and still suffer a
loss on dilution will depend mainly on the following parameters:
The size of the bucket of the shovel
-The nature of the shovel (front or retrograde),
- The nature of the mineralization and especially the nature of the ore contacts sterile
- The general slope of the deposit,
- The method of operating transverse or longitudinal
- The quality of work team’s selectivity.
For the first calculations, the angle of winding is fixed at 40 ° for the whole project and this, in
reference to known standards for types of terrain encountered. As to measuring the progress of
the project it will be possible to adjust this parameter based on geotechnical tests conducted on
samples collected on site.
o. Height and width of the mounds.
The height of mounds will depend mainly on the type of shovels that are used and whether the
35
homogeneity of the mineralization. Currently mounds 15 m are common.
Knowing the height of mounds and the angle of slope, we automatically know the width of the
tiers. We will then conduct an initial design career by setting the slope of the most judicious
manner as stated above.
: angle de repos ou de stabilité
Lg : largeur des gradins
Hb : Hauteur des buttes
Hb
Lg = -------
tg
Figure 1 Height, width and stability of the mounds
p. Temperament.
The temperament of a career reflects the notion of "stripping ratio" (stripping ratio)
36
used in the Anglo-Saxon literature. The formula of temperament is the total excavation (in m3)
compared to the tons of ore (expressed in ts) or tons of metal (expressed in tonnes of copper or
copper equivalent tonnes). The stripping ratio "of Anglo-Saxon publications, meanwhile,
considers the ts sterile or m3 respectively reported tonne or m3 of ore, and using a report of
homogeneous units (to the point of view dimensional) contrary to the temperament it uses a
ratio of hybrid units. Both ratios, however, are insufficient to determine the economic value of a
mining project.
A time of 4 m3/ts was chosen for the initial calculations.
This figure will be determined automatically when the design phase of various pits will be
initiated.
Assumptions and key parameters geological and mining
Mining Réserves 1.000tCu 260.58
1.000tCo 16.4
Teneurs Cu % 1.86
Teneurs en Co % 0.16
Ts minerais (réserves minières) 1.000ts 10.156,56
0
tempérament 4
Volume total mines a ciel ouvert m 3 40626240
Cout minier $/m 3 3.25
37
$/ts 13.0
Table 9 Assumptions and main geological and mining parameters
q. Drainage
The drainage will be a significant problem in the final phase of the project since it will be
necessary to abate the water level to a height large enough to exploit the deposit installments are
currently located in the water table. The static head will vary between 50 and 90 meters. In a
first approximation, a total capacity of about 1100 to 1300 m3 / h is a minimum installation and
the proposed scheme is as follows: The water needs and industrial facilities are estimated
between 100 and 120 m³ / h. The water needs of the population is estimated at about 100 m³ / h.
st ? Distance transport to the excavation The transport distances are calculated based on the
simplified formula Kmst = dh + (10 x dv) + 0.5 kmst = km with standard dh = horizontal
distance dv = drop As for the waste to be transported from the quarry to fill areas for ore to be
transported from the quarry storage areas near the mill.
s. Equipment necessary for mining operations.
The recovery of mineral deposits is estimated at 80%. The sizing of the equipment
necessary to achieve the main mining operations must take into account the constraints of the
reservoir and production levels envisaged. The final choice of equipment and gear will be
38
determined on the basis of tenders. 01. Drilling and mining The usual criteria for qualifying
land according to its hardness and abrasiveness are used. The choice of mesh drilling as well as
their size will also conventionally. It is likely that he will drill and mine 60% of land throughout
the lifetime of the project. Given the size and characteristics of the ore (ore altered or
fragmented) design operating (reduced work space that will appear in the lower levels) and the
need to maximize ore recovery (minimizing the dilution sterile products) gear below will be
used: 3 face shovels with bucket emptied from the bottom (for about 6 m3 refusal): Capacity of
about 6 m3 refusal Cutting height of 6 to 8 m, Spill-turn by side (1 or 2 sides). 1 scoop
retrograde motion: Capacity of about 3 m3 refusal Cutting depth of 5 m. 2 wheel loader for
cleaning the front and manipulation in landfills: - 1 unit (220 kW) - 1 unit (170 kW) 02.
Transport career to fill the site operating The configuration of the field helped develop the
design with a width of 15 m inclined without stripping increase significantly, this design of
inclined will ensure the flow of dump 50 tons. The fleet will consist of grab buckets either rigid
frame, or hinged frame grabs or buckets of the two types. 03. Earthwork and grading Units
provided for this work are: 3 bulldozers type CAT D8R, 3 graders type CAT 14H, 4 sprinklers
12 m3. A simple dispatching not necessarily use the computer should be sufficient given the low
number of gears in motion a simultaneous manner. Communications between the control,
dispatch, help desk services and devices will be through a VHF radio network. t. Programming
mine production The actual working time on site (2 teams running at 2 am 6 posts per day) is
adapted to the habits of the country, and takes into account the particular transmission constraint
of staff (for each workstation 1 journey home place work). The number of lines to be used in the
implementation of this project was provided for a rate of excavation than 212,000 m3/month, to
extract an average of about 59,000 ts / month (given d 'mining recovery 80%). At this rate and
39
based on current geological data, the mineral deposit will be exhausted in about 15 years.
Programming mining is expected to maintain an "advance" ore concentrator. It reaches 6
months of production at the exhaustion of the project. Approximate Calculation of primary
equipment necessary.
Volume annuel 1.000
m3
2.544
Nbre de jours par an 313
Volume journalier excave 1.000
m3
8,127
Volume non foisonne par voyage m 3 35
Nbre de voyages par jour 232
Nbre heure effectives par jours 12.5
Nbre de voyage par heure 18.5
Nbre de rotation par heure par camion 3
40
Nbre de camion opperationnels 6.2
Taux de mise a disposition 80%
Nbre de camions necessaires 7
Nbre de godets par minute 2
Volume par godet m 3 2
Volume excave par pelle et par heure m 3 240
Volume excave par pelle par jour 1.000m
3
3,0
Nbre de pelles theorique 2.7
Taux de mise a disposition % 80
Nbre de pelles necessaires 2.4
soit 3
Table 10 Calculating approximate amount of gear needed primary
Applying the theory of queues has often proved inadequate to calculate the
number of loaders and transport. u. Selectivity mineral extraction To ensure the best possible
recovery of ore extraction and minimize dilution of ore with barren or pollution between classes
of ore, the following actions will be undertaken: Recognition by trenching the roof of each level
41
of 5 m, depending on transverse sections all'orientation ore, spaced 25 m or 12.5 m if necessary
and rapid analysis of ore passes, Sampling and rapid analysis of drill cuttings of blasting holes
for every level of 5 m
v. Perimeter Security
The usual guidance material safety (which may be specified in the new mining regulations)
provided around the open pit mining operation, a security perimeter extending up to 800 m from
the quarry. This area includes three zones, extending respectively:
1) 0 to 300 m or "kill zone" area prohibited for the duration of the shooting, the personnel,
machinery and equipment must be evacuated from the area;
2) From 300 to 500 meters or area of infrastructure and parking lanes, only employees involved
in mining is tolerated if taken refuge in shelters;
3) From 500 to 800 meters or traffic zone, where the fields and channels of communication are
tolerated, but not homes. However, the technique of firing ranges by priming the "NONEL"
which will be used to minimize KITANDA projections compared with conventional techniques,
as shown by various tests to Katanga in recent years and may reduce the magnitude of these
safe areas.
7. METALLURGICAL PROCESSING
w. General
Much of the copper deposits of Katanga takes the form of land which are folded
hills characterized by clearings of poisoning due to the high concentration of copper in the soil.
Contrary to this general rule, the deposit is KITANDA a wooded plain without outcrop covered
by a few yards of red clay deposits. This plain extends along the banks of the river Luvua.
42
Given the topography of the deposit mineralized, it is likely that the water level will be
approximately 10 to 20 m below the soil surface.
The limit of oxidized and sulfide zones which correspond generally to the location of
water table in second place at this level. It is likely that the oxidized surface ores are scarce and
that the sulfide minerals make their appearance very quickly. We would in this case quickly in
the presence of two classes of minerals, oxides and sulfides and confronted with two types of
conventional metallurgy, hydrometallurgy oxides and sulphides hydrometallurgy. SOUTH
CHINA MINING SPRL''society'' shall have already metallurgical plant using the latest
technologies in this field, taking into account difficulties in power supply sufficient for
industrial consumption; they will be used for the treatment of our minerals.
43
Fig.a: flow sheet gravimetric concentration
44
Treatment metallurgic classic has to envisaged previously further informed about the nature of
the mineralization.
A restatement of discharges by direct leaching was also at guests envisaged
because the deposits of this sector Gecamines are often "polluted by copper silicates such as
chrysocolla.
In metallurgical resumed on the following pages, are crits one hand metallurgistes my complete
since the extraction mining up to the site and discharges; second production of copper cathode
and carbonate cobalt carbonates , marketable products.
Treatments appropriated each category of ore finished and their cobalts and returns affa rents.
on hypothesis distribution of 40% of oxide ores and 60% of sulfide ores and serves available
about 8 0 million tonnes of ore with an average grade of 2.7% copper and 0.27% cobalt,
however, retained at this stage as a reasonable basis for simulations of proccess Metallurgy.
The metallurgy will be adapted to the geology As the accurate perception of the latter.
45
46
Table 11 Estimated quantity and quality of reserves
Figure 3 Breakdown of types of ore
KITANDA The project will start with a period of treatment of oxidized ores.
The occurrence of sulphide ores will form ore mixed 7 years after starting the project.
The classification of minerals, as described in Table 11 above, to determine both a
47
quantitatively and qualitatively, the feeding program in mineral and metallurgical facilities to
determine the number of sections needed for milling this effect. This feeding program is
described in Table 12 below.
For information a detailed table with food, year by year, has been developed for calculations of
the economic model.
48
49
GENERAL METALLURGICAL PROCESS
50
Figure 1 Process Metallurgical General 04. Description of units (8) Module crushing This
module consists of a receiving hopper, a feeder scales and a jaw crusher. This facility could be
semi-mobile because of operating facilities. In the case where the crusher is fixed, we need a
51
carrier recovery and a Dumper truck on a storage area to achieve a "bedding" to standardize the
content in the diet, which is important for the conduct of the flotation . Where is the crushing
semi-mobile and is career, the storage is fueled by dump trucks. (9) Website storage of minerals
This site will have storage capacity of at least three days to absorb production stops for
maintenance and for breakdowns and repairs crushing module without disrupting the operation
of the wet milling or cause a loss of production. The storage site of crushed ore will be covered
against the weather. Indeed, the site of Tungwe is in a subtropical zone and has a season
pluiespluies of six months per year. The wet ore "plugging" disruptive and therefore a decrease
in production. Finally the storage of minerals will be provided with equipment recovery type
gantry rotopelle spilling onto a conveyor feeding the grinder. This power is controlled by an
electronic switch for dynamic weighing of loads moving. . (10) Module wet milling This
module could be either conventional milling or by an autogenous grinding (the advantages and
disadvantages of each of the grindings are described below). Grinding classic uses a
combination of bar mills and ball mills with intermediate classification. Autogenous grinding
mill uses a semi-autogenous (SAG Mill #), followed by a second floor consisting of a ball mill
and a battery of classifiers, hydro cyclones. We will see later in the note details No. 1 that we
give preference to conventional milling. After this treatment, the pulp is sent in conditioners
before flotation. This pulp has a density of 1.25 and a particle size of 80% under 150 mesh. To
guide the process, install a hydrometer upstream of the flotation. (11) Hall of flotation,
sedimentation and filtration This entity follows the classic pattern consists of a series of
flotation machines with a capacity of 300 cubic feet with a floor of roughing and finishing a
floor and a recycling of intermediate products in the circuit head roughing. The concentrates
will be unsettled, possibly filtered and sent to the leaching. Discharges, they are sufficiently
52
exhausted are sent to the site discharges. If they are not, they will be sent to another type of
leaching densely conducted in reducing conditions to recover copper silicates that can float in
any case and recover the balance cobalt not float. x. Metallurgical parameters and assumptions
used to calculate economic The table below gives the basic parameters and assumptions that
have been selected to perform economic calculation. The parameters used by operators of other
candidates (not yet confirmed for the ores of KatangaKatanga) are represented in purple next to
those used in our case represented in yellow. The study faisabilitéfaisabilité will confirm
whether the proposed process, heap leaching or vat, may be selected for the particular category
of minerals whose siliceous gangue acid (SiO2) # does not require too much sulfuric acid to be
dissolved . It should be noted that other operators have also classified their ores by the ratio of
consumption of sulfuric acid (GACGAC) #.
Table 13 Assumptions and main metallurgical parameters
The project is feasible without major obstacle to metallurgically. From the estimated deposit to
8.000.000 ts ore at average grades respectively of 3.4% Cu and 0.30% Co (equivalent to
260,000 t Cu and 15,000 t Co) and based on performance copper recovery of 79.7% and a
53
recovery yield of 72.5% cobalt, it is possible to produce for the whole holding a quantity of
copper metal equivalent to 831,000 tons in the form of cathodes and amount of cobalt metal
equivalent to 53,000 tons in the form of carbonate to 35% cobalt content.
Yields metallurgical ore per category are listed below:
Table 14 Yields mà © by metal taste catà © gory ore
The average yield © rà © pond is included in the total column while the performance of each
catà © gory ore is © displays in the column for each class.
The food was € ™ à © tà © rà © party in Moda ¨ à © the economic, anna by anna © e © e
dà © to complete the actual production of each anna © th © basis of character tics and ore
based on flow-sheets of selected treatments.
54
y.
55
56
The rate balances resume as follows:
Table 43 Yields of the overall flow-sheet n° 1 and n ° 2
z. Metallurgical Operating Costs
05. Total operating cost and electrical energy use of the factory
(12) electrode position Copper
This need is based on Faraday's law. Depose equivalent-gram or 31.77 g of copper requires
96,500 coulombs or 26.8 Ah.
Depose a gram of copper therefore requires 26.8 / 31.77 = 0.844 Ah.
The average applied voltage to the terminals the cell wit electrolyse with plomb plomb anode is
2.28 volts. Taking a yield of the position of copper by 95% and a yield of rectifying electriques
of 96%, we encrypt the energy consumed to 0.844 Ah x 2.28 V / 0.95 x 0 , 96 = 2.11 kWh / kg.
(13) Leaching, precipitation and auxiliary precipitation
the energy requirements for these operations and for all IPOs operation auxiliary (cranes,
57
pumping, lighting) have been estimated to 20% of consumption cells of electrolyse for the
flow-sheet n° 1 and 10% for the flow-sheet n ° 2.
Table 50 Estimated cost of electricity from the smelter 06. Calculating the cost of reducing SO2
The manufacturing process of reducing SO2 from the following reaction: 2 SO3 (l) + S (s) = 3
SO2 (g) Taking into account the stoichiometry of the reaction, the reports SO3/SO2 =
2x80/3x64; S/SO2 = 32/3x64 = 0.8333 = 0.1667 Indicate that to produce 100 tons of sulfur
dioxide, it must implement 83.33 tons of SO3 and 16.67 tons of elemental sulfur. However,
83.33 t SO3 correspond to a production of 83.33 x 98/80 = 102.08 t H2SO4. In acid prices to
120 USD / t and sulfur made in situ at 180 USD / t the cost of SO2 becomes: 102.08 x 120 =
12,250 $ 16.67 x 180 = 3000 $ 15,250 The price of SO2 per ton is therefore $ 152.5. 07. Cost of
reagents and réactifsCoût processors The reagents involved in the process of hydro-
metallurgical manufacture of copper and cobalt are either produced locally (lime, acid) or
imported from abroad (carbonate and sulfur). Prices for items given in the table are formed on
the basis of data and information collected from GécaminesGécamines force.
58
Table 51 Costs of reagents leaching copper and cobalt.
ECONOMIC AND COMMERCIAL INFORMATION.
8. MARKET
a. Current market
08Copper Demand
for copper will be supported mainly by increased consumption in China and that of other parts
of Asia. This development, which comes after several years of decline, resulting from the
proliferation of electronic components in many consumer goods. If this trend were to continue,
it could have a significant positive effect on copper demand in the long term. However, several
new mining projects have emerged around the world and threaten to create a situation of
oversupply in coming years.
The projections made on the balance between production and consumption and low cost
means of production of new units (less than 50 cts / lb), leads to predict a sale price of long-
term copper around $ 1800 per tonne. We will see later that conservative assumptions have been
used to project Kitanda at $ 1,600.
59
09. Cobalt According to various experts,
global demand for cobalt is stable for several years and is estimated to average 30,000
tonnes of metal per year. World production was adjusted to the level of demand in recent
years especially after the phenomenon of exporting heterogenite.
The major uses of cobalt are found in the following areas: - Hyperalliages for the
aerospace industry, - Chemicals (catalysts, CoSO4 ...), - Magnetic steels (Alnico #) -
Carbides, ceramics, - Cutting Tools Industrial - Construction of high performance
batteries (fast growing) Applications in medical devices. Cobalt is commonly used
worldwide in fields involving other metals such as copper and nickel. So far, the
operation of the cobalt-called "fatal" or "secondary", has largely cover the needs of
global consumption, with production costs relatively low, around 2 $ / lb. The price of
cobalt to find a balance point that will be directly linked to the marginal cost of
extraction of cobalt metal fatal excess demand and marginal consumption.
Until that date, world production of cobalt remains in deficit and can be
partly achieved by reactivation of the exploitation of small deposits of cobalt
Katanga. Projections lead to predict a downward trend of the selling price of
cobalt from 30 to 20 cts / lb over the next 5 years. bb. Prospective studies 10.
Changes in copper prices and selection of hypotheses
60
The chart below shows the statistical values of current sales of copper from 1980 to
2002, the linear trend line (dotted) of these historical values and the value used in calculating
basic project is $ 1,600 per metric ton (red).
Figure 3 Changes in copper prices and selection of hypotheses
61
Evolution Course cobalt and choice of assumptions
The chart below shows the statistical values of current sales of cobalt from 1980 to
2002, the linear trend line (dotted) of these historical values and the values chosen by 6 per
pound (in red). We see at first glance that the basic assumption is comfortable. It is likely that
the trend significantly upward will not be confirmed because of the implementation of various
projects Katanga and because of the chronic underestimation of the potential reserves which
heterogenite probably a few surprises.
Figure 4 Evolution of the price of cobalt and choice of assumptions As cobalt is
produced as a carbonate containing 35% cobalt was considered, based on sales made by
companies instead, the sales formula for cobalt content is based on 65% of the course for LMB
Buyers located in RSA. It should be possible to improve the selling method by reducing
impurities (copper, nickel and manganese). The cost of transporting, placing big bags included,
is $ 110 / t. Moisture after drying will be 10%.
62
9. FLOW PRODUCTION
cc. Trade Policy
It will carry as much as possible through sales contracts with long-term end-users to
avoid traders who are just expensive middlemen. It is obvious that the sales offices will also be
reduced and efficient as possible. By focusing on transactions InternetInternet (E business) it is
certainly possible to become much more effective than were the heavy structures and isolated
pass
Hypothesis "and its parameters selected for marketing
Table 52 Hypothesis and parameters and its very successful for marketing
10. Reanalysis of the reduced project.
As noted previously the purpose of the project is launching a project that will seek to
exploit the parts very rich in cobalt ore to produce a marketable cobalt carbonate. If the project
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starts quickly, it will be possible to take advantage of being raised cobalt and get the desired
effect which is:
1) to fund the bankability study,
2) To maintain the level exposure of the lessor of a low level until the end of the bamkability
study,
3) to carry out an observation "in situ" in order to appreciate the full-scale of the political risks
and technical.
By taking advantage of all incentives of the New Mining Code will need to ensure that it
is possible to postpone the first five losses (absorbing margin operatory gross project product)
The following table shows the cash flow .Project product that is actually in the plan of Affairs.
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Table 54 Cash flow from reduced project cash ($ thousands)
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Examination of the two lines to cash flow accumulated to suggest that the investment
will be repaid between the fourth and fifth years depending on the course of cobalt. ff. ?
Definition production parameters It is based on geological knowledge, mining, metallurgy and
trade indicate the extent possible the project size in quantity and quality.
The time frame and financial holdings must also be done on this occasion. Most of
the techno-economic assumptions derived from technical analysis above. The table below is
merely a reminder of those parameters that were mentioned in each chapter. ?
gg. Definition of expenditure before production
This phase of work is to take inventory of all expenses to be incurred prior to the
production phase and especially the almost concomitant export of metal products to generate
revenue and profit which is the underlying objective of the project. Details of expenditure prior
to the start of production has been previously displayed at the project definition. These expenses
are of course spread over time in order to calculate the table of the loan (or loans that if multiple
donors).
hh. Definition of capital.
Loans and repayments As indicated in the previous table loans shall be established by
mutual agreement with one or more donors. Even if the landlord wants to be an entrepreneur or
a buyer of metals, it is advisable to separate the functions of providers of those funds contractor
seeking work or that operator on the metals market. It takes this opportunity to clarify any terms
of the loan as well as those of its recovery (grace period, annual rates, principal, interest,
deadlines ...). It should be noted that all the interest and financial costs of borrowing will be
supported as operating costs while the principal repayment will be made after calculating the
gross margin taking into account depreciation. In this first table a single donor was found with a
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single rate. The loan, which has not yet been negotiated, was broken into five tranches. The data
used are those announced by a lessor can request that the guarantee on the repayment of interest
by a bank enjoying a normal rating. It was assumed that the U.S. base rate, which acts as
reference chosen by the landlord, would remain at its current historically low and increase by
one point every two years to stabilize at 6%.
Figure 5 Evolution of interest rate and U.S. base rate of borrowing As a guide the theoretical
table that was used for loans is shown below:
Table 6 Table theoretical borrowings ($ thousands) Fund roulementFond rolling This has been
fixed at the equivalent of four months of the budget for supplies needed to operate. He
represents the working capital disbursed in the fifth year and repaid the eighteenth year (last
year of the project for purposes of calculation). The working capital required to start the project
deducted from the reduced working capital required to start the big project. Capex and Opex
and Opex Capex These amount to $ 115 million of which $ 103 million investment and $ 11
million of working capital. An unexpected $ 12 million is included in the amount of $ 103
million planned for investment. The financial costs are taken into account the level announced
by a lessor possible and are part of capexcapex. Some Various tracks that have not yet been
developed will likely reduce the financial exposure required to donors. These include call or
use:
- The various credit facilities providers,
- Opportunities to pre-sales
- The possibility of pledging of intermediate products and / or stocks of inputs,
- The possibility of deferring some expenses beyond the sixth year (it is not necessary to have
all the equipment at the beginning of the project)
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- The need to support the reimbursement by all partners.
ii. Calculation of tax included in operating costs
This is the immediate fiscal costs that are part of direct operating costs. Conversely when the
financial statements are being prepared we will determine the taxation which is not part of the
direct operating cost. The payment of all taxes is, of course, the eyes of the Government of the
Democratic Republic of Congo and those of the World Bank a deeper purposes of the project
to meet the imperative of development.
1. Surface rights (DS)
This "line" is calculated based on rates provided by the New Mining Code that is
multiplied by the estimated size of the concession concerned.
2. Admission (DE) It counts the total budget of supply (mine, metallurgy, direction,)
which is multiplied by a fee rate input means of 3%. For new projects the rates of duties
applicable under the New Mining Code are reduced and vary from 2% to 5% depending on the
types of materials or equipment concerned, provided that a complete application has been
submitted previously to the Ministry of Mines. This aspect of the New Mining Code clearly
illustrates the importance of conducting a due diligence study as thorough as possible to avoid
oversights that will be difficult to catch up later.
3. Income Tax (IPRIPR) to calculate this line must be known envelope net tax cost of
labor that is obtained by summing the net costs of all categories of labor. Then apply an average
rate of income tax of 35% for the income tax.
4. Income tax for expatriates (IPREIPRE) On the envelope net tax expatriates applying
the tax factor of 10% under the New Mining Code as a special tax rate on income expatriates in
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lieu of tax rates very important under previous legislation.
5. Contribution to turnover (CSF) The tax rate of 18% current is applied to the budget
for outside services to determine the position of the CCA business plan. The calculation block
described in this paragraph is the line 100 to line 124.
6. Synthesis tax included in direct operating costs Table 57 Direct taxes ($ thousands)
7. Total production costs (line 258) In one hand a total net costs of production and the
cost of direct tax yields production costs which we apply a contingency factor of 10%.
Table 58 Total Production Costs ($ thousands).
8. Analysis of unit costs
Table 59 Analysis of unit costs
dd. Calculation of revenue and sales The calculation of income is relatively easy
arithmetically because it knows the amount of metals produced, well enough transport costs on
exports and other marketing costs and we can choose a hypothesis underway metal products.
The choice of the progress of metal must be made with caution given that the control of markets
likely to escape the project operator. We must ensure that the costs of marketing the project are
lower than those of competitors.
kk. Productivity and Inflation
As mentioned previously the currency used is U.S. $ thousand according to the practice
of mining that has global benchmarks expressed in this unit. It is also in constant dollars
because it is recognized that the industry will continue to offset price increases in annual
productivity improvements. ll. Calculation of gross operating margin (EBITDA) Knowing the
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costs of production and net revenues of marketing costs can be determined by the difference
between these two lines the gross operating margin also called EBITDA (line 262). The
distribution of the gross operating margin is as follows:
- Provisions and charges related to net revenue of marketing
- Repayment of loan and interest incurred during and after the grace period,
- Provision related to income distribution among shareholders after payment of tax on
schedular income. A Synthesis of the distribution of the gross operating margin.
Table 61 Distribution of gross margin ($ thousands)
• The array of total loans and the repayment plan is as follows: Table 62 and loan
repayment plan The graphical representation of the borrowing and repayment plan may be as
follows:
Figure 6 Borrowing and repayment plan
mm. Maintenance capital expenditures (including replacements)
An annual budget of $ 2.0 million was provided for under investment in maintenance
since the twelfth year until the sixteenth year estimating that it will begin to replace equipment
after adaptation of metallurgical ores mixed sulfide. Maintenance capital also called TNCE #
are amortized in the year. For the adaptation of metallurgical processing of ores and sulfide
mixed an envelope of $ 50.0 million has been distributed over the years ten and eleven.
To simplify this investment is expected to flow and amortized in the year. nn. residual
value of assets and liquidation prédécouverture An appropriation of $ 23 million was made the
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eighteenth year as a residual value of asset liquidation. As discussed below it is arguable that the
project will last longer than 18 years but needs to fix the results expected by investors "must
stop" the calculation after a reasonable time. A budget of $ 1 million has been provided in the
loan to start stripping the five years preceding the supply hub. This envelope is recovered the
year eighteen.
oo. Calculation of rate Residual The rate of return "project" and "private" are also calculated
from the main form of business plan. For a value of three main parameters (price of copper,
cobalt and current rates of borrowing) are the cash flow "project" and "private" that perform
calculations corresponding IRR.
10. FIRST RESULTS OF THE CALCULATIONS
Table 65 First results of calculations (in thousands of $) One can see that the
profitability of the project as result of above calculations is acceptable even with the
assumptions voluntarily "pessimistic" that were used and what, specifically, those concerning
the progress of metal. We will see further, however, that these results are improved markedly
with a significant rise of 10% over achieving sales justifying going ahead with the project and
fund studies faisability.
11. RESULTS WITH IMPROVED DURING SALE
The table below shows (in thousands of $) the results obtained by considering the
progress of metal products will be improved by 10% compared with prices in the selected
reference case. There is a fairly significant improvement in results which leads to the
conclusion that market research is obviously important in assessing the bankability of the
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project.
Table 66 Results improved over sale of metals (in thousands of $)
These early results show it is possible to define a mining project attractive to a
private investor looking for a net profit at least equal to 20%. Faisability studies, which will
be absolutely rigorous, will not tolerate any complacency subjective assessment or choice of
parameters
pp. Area of project viability
It is actually estimate what range of values of major parameters outside the project
remains attractive to private investors. To address this concern of many simulations (36) were
conducted by varying the three major parameters between values that can be considered
reasonable against the project and the values thereof while remaining realistic are much more
favorable to the project. It is normal that all parameters are neither "bad" or "good" at the same
time, which could lead to the conclusion that the project is well within the limits that were set.
You can not borrow at high interest rates and sell the metal to bad run at the same time. The
table below shows the 36 cases analyzed, while the graph gives for his position of extreme
curves.
Table 68 Simulation Results Figure 9 Area of viability of the project for a course of cobalt at $
4 per pound For a loan at 8% the project can almost tolerate a course of cobalt at $ 4 a pound
and a copper price of $ 1200 per tonne. For a loan to 24% will require that the copper can be
sold at least $ 1800 a ton if you want to be able to repay the loan and have a profit for
distribution. Figure 10 Zone viability of the project for a course of cobalt at $ 6 a pound For a
loan at 8% the project can tolerate a course of cobalt at $ 6 a pound and a copper price of $
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1200 per tonne. For a loan to 24% will require that the copper can be sold at least $ 1,600 a ton
if you want to be able to repay the loan and have a profit for distribution. Figure 11 Zone
viability of the project for a course of cobalt at $ 8 per pound For a loan at 8% the project can
tolerate a course of cobalt at $ 8 a pound and a copper price of $ 1200 per tonne. For a loan to
24% will require that the copper can be sold at least $ 1,500 a ton if you want to be able to
repay the loan and have a profit for distribution.
The procedure of calculation and presentation of simulations dissociates compensation
function "funder" to that of "designer-developer of the project in order to pay specific function
identified. He will decide later whether this presentation of the problem is appropriate for each
circumstance. qq. Rate of Return The rate of return on the "project" and "foreign investors"
have been calculated on the basis of rent money income fixed at 5.3% per year (U.S. base rate +
1% as announced by a potential donor) to assess the soundness of the project. The returns are
calculated on the gross cash flow (EBITDA) for the project and the rate of net cash flow
accruing to the sponsor and donors alike. For the calculations whose results are represented in
the chart below, the starting rent of money is fixed at 2.0% rate offered by a donor candidate,
and the progress of cobalt is set at $ 6 / lb for the three extreme cases of progress copper.
Figure 12 Changes in the rate of return The hypothesis fixing the price of cobalt at $ 6 / lb
(which can be described as very realistic) results in rates of return quite as good partners for
each project for the donor funds necessary to achieve it. The difference between profitability
"project" and cost "private" gives a good measure of flexibility that may emerge for private
investors (especially institutional investors institutionnelsinvestisseurs) since this difference
reflects the share of state and GécaminesGécamines.
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INFORMATION ON ORGANIZATION
The project will be a general organizational structure as light as possible while avoiding
the pyramid model heavier and frozen and develop the possible labor pool and the use of
specialized task forces to avoid inflation of the number of staff positions. However the three
major functions of staff must be ensured.
13. HUMAN RESOURCES
rr. Administration and Personnel Management
These activities include the one hand: General Administration of staff including: the
development of pay (salary policy, schedules, scores, leave, travel allowances, allowances,
bonuses, ...) the development and maintenance of standards, procedures and rules,
administration of benefits "function" (housing, car, ...) promoting monetization rather than
granting them, administration of the disciplinary system, labor relations (union negotiations,
collective agreements, ...) general management of staff including: defining the framework and
the actual function of organic production programs and activities, recruitment, selection and
hiring, qualification and classification of jobs and workstations professional promotion and
monitoring of career plans, management of any system of bonuses linked to individual
performance and company performance.
The positions of execution will be defined by generally simple, inspired by the ILO
classification by as sorting criteria into groups and subgroups of business according to criteria
of skill levels (semiskilled or gestural, semi workers -skilled, skilled, highly qualified). The
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positions of control with only two levels, the first on such functions as team leader, office
manager, ... and the second involving functions such as foreman, shop foreman, ... It will be
crucial not to confuse the description and the qualifications of the position with training and
qualification of the agent.
Similarly, the characterization and classification of jobs, directly from the organization
of work in the company remain the exclusive prerogative of the employer and are not negotiable
and can not make a collective agreement with the social partners, those it should be limited to
examining cases of blatant distortion between the profiles of the position and that of the agent.
The nuisance of the workplace will be assessed taking these into account in
calculating compensation. For cons, the risk increases the probability of occurrence of accidents
will be adequately covered by insurance. The framework will be limited to the department head
level and specific functions of management. Some top professionals with no supervisory
responsibilities will, however, given their qualifications, similar to frames. A modern method
for evaluating managerial and highly skilled as the Hay-METRA may be advantageously used
for this purpose.
The number of skill levels and coaching is limited to eight. Any bonuses for high
performance will be granted based on company performance and quality of individual services.
Again and avoid moving to a system for automatic granting, we must use effective setting
individual goals, providing performance monitoring and preferably using the technique of the
interview between assessors, all endorsed by a supervisor. ss. Jobs created directly and
indirectly At this stage of the project can be estimated that the following positions be created:
Table 72 Staff distribution by categories ? Wages must conform to the laws of the labor market,
neither more nor less. They will be set at a level sufficient to retain and motivate the workforce
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in a sustainable manner which will require to also appeal to the traditional techniques of human
resource management to achieve professional growth of each, which can be that benefit the
employer.
Table 73 Distribution of compensation of employees
It should be noted that the average tax rate of 35% was used to assess the tax on
professional earnings (IPRIPR) employees. For expatriates the direction of New Code
MinierNouveau Mining Code have been applied taking into account the special tax of 10%
(IPRE).
14. SUPPLIES
These include inventory management, purchasing, transportation, import and the
development and maintenance of technical specifications and administrative systems. In order
not to complicate structures, consideration should be given here to use as much as possible the
use of outsourcing (freight forwarders, customs declarations, ...) and play competition. It would
also be wise to bear by some providers of administrative and financial constitution of stocks of
spare parts and subassemblies rolling.
15. FINANCE
These include:
- The general accounting,
- The preparation of financial statements and balance sheets,
- Cost accounting and accounting industry,
- The establishment of cost ratios / production
- The annual budgets and five-year investment and control,
- The annual operating budget (including recurrent budgets) and five and their control
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- Forecasts and liquidity plans,
- Inventory management. It will specifically ensure that the cutting of the accounting
operations and the operating budget are similar to better control production costs and avoid the
use of calculations and tests outside accountants.
The Comptroller General and Treasurer General will be clearly defined and clearly
separated. We respect the prescribed course of Accounts and Congolese are aligned with
international practices in this area (GAAP) with quarterly financial statements. A small but
effective unit directly under the branch will handle the legal and tax, insurance and auditing.
In case of momentary overload of work the use of outsourcing (trust agencies, law
firms, auditing firms, ...) should be considered. Schedules and budgets that are reference tools.
All decisions affecting the company financially beyond a certain threshold can not be taken by
appropriate committees (purchases, sales, payments, subcontracting, outside services,
acquisitions or divestitures, ...). Similarly, all personal commitment can be made on a decision
by a recruitment commission documented by examination of multiple files of candidates for
each position.
INFORMATION ON SOCIAL POLICY
Traditional, large companies Katanga (all heiresses companies chartered early colonial
period have important rights and privileges but subject to high duties and charges) guarantee in
lieu of government offices or providers utilities a series of benefits such as health care,
education (at least for the primary) and frequently also the provision of basic supplies at
protected prices (corn, oil, salt fish and soap) in quantities depending on family composition.
Supervision of certain sports and cultural activities is often provided by an employer support to
ASBL # organizing them and acting under his control. This system has worked well for many
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years as the lack of government did not cause a shift in demand for social benefits from the
general population to social services for large enterprises. This resulted in a significant
impairment of social benefits companies for their employees who often did not receive services
that purely theoretical, while these same companies attended an uncontrollable swelling budgets
of their social programs. It would be prudent to monetize and salarization certain social benefits
(which is free has no value) and preferably using a system of cooperatives and mutuals, as
envisaged and recommended by the World Bank for large current Katanga. Anyway, this sector
should be strictly controlled and precise in order to counteract its natural tendency to drift.
Costs for staff to reflect both the payroll and benefit costs and benefits, in terms of overall
budget. A reasonable estimate of total benefits (if they are not insured by the employer) is
approximately $ 150 per month per agent. On the other hand, the employer's contribution (2 / 3
of the amount owed, the remaining 1 / 3 being paid by the employee) social security
contributions due to INSS is included in the standard cost of labour - 'work.
CONCLUSION
After this preliminary study it appears that faisability Project KITANDA is a better
option than interesting. The limit of conceptualization and modélisation is reached that the
physical and quantifiable data on which to build are and will remain insufficient as long as the
deposit has not been better defined by quantity and quality of exploration.
The further investigation ( "due diligence due diligence") mentioned in the phases of the
project and introduced by this preliminary study should therefore be undertaken and funded as
soon as possible. Accurate knowledge of the field will include defining the mining and
metallurgical projects to lift then the other uncertainties of the project.
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