TORONTO (miningweekly.com) – TSX-listed Katanga Mining has temporarily stopped mining operations at the Tilwezembe open pit and ore processing at its Kolwezi concentrator, in the Democratic Republic of Congo, in response to slumping cobalt prices.

The suspension will remain in place until cobalt production becomes economically viable, interim CEO Steven Isaacs said in a statement.

However, the company has “significant” inventories of cobalt concentrate, which enable it to meet its cobalt sales forecasts for 2008.

In the meantime, Katanga said it will continue to focus on the Kamoto underground mine, the T-17 open pit and the Kamoto concentrator.

The company is accumulating stocks of copper concentrate at the Luilu metallurgical plant, which was damaged by a fire earlier this month, “for processing at a later date”.

Katanga joins an increasing number of firms that have announced plans to curtail production or delay projects in response to slumping prices and frozen credit markets.

The company said on October 24 that was it re-examining its capital expenditure plans, but, in the meantime, would continue funding the second phase of its Kamoto rehabilitation project.

For an up-to-date list of companies that have announced cutbacks as a result of the financial crisis and commodity-price declines click here.

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