TORONTO (miningweekly.com) - TSX-listed Katanga Mining increased third quarter production of copper cathode at its Democratic Republic of Congo operations to 6 812 t, 28% higher than the previous three months, the company reported on Friday.

Production of cobalt metal and concentrate also increased, by 196% and 8% respectively.

Katanga is consolidating, rehabilitating and expanding the neighbouring Kamoto and KOV operations in the DRC, after merging with rival Nikanor earlier this year.

For the full-year of 2008, the company expects production to reach 22 000 t of copper cathode, 900 t of cobalt metal, and 43 500 t of cobalt concentrate, containing 2 600 tonnes of payable copper and 1 200 tonnes of payable cobalt.

However, the firm said earlier this week that it was reviewing capital expenditure plans going forward, in response to recent turbulent market conditions.

“This review is targeting the maximisation of operating cash flows and reducing project capital expenditure requirements, while preserving optionality for development of the company's world class asset base,” the firm said.

Katanga also reported on Friday that it had moved to the “final documentation stage” in its negotiations with DRC State miner Gecamines, over a new joint venture agreement.

The two parties signed a memorandum of understanding in August this year, which set out the terms for a new agreement that would merge the previous contracts that Gecamines held with Katanga and Nikanor respectively

The new agreement would also address the concerns raised by the government, after its industry-wide review of mining contracts in the country, Katanga said at the time.

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