Critical Metals commences production of copper ore at the Molulu project in DRC
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(Kitco News) - Critical Metals plc today announced the commencement of copper production at the Molulu project, an ex-producing copper cobalt mine in the Democratic Republic of Congo.
The company said that production follows the completion of preparation work on site and the arrival of several vital pieces of mining equipment, adding that "this is a major landmark as the company moves towards securing further assets."
The mine will initially run on a single-shift basis and is estimated to produce approximately 10,000 tonnes of copper oxide ore per month on a steady-state production rate. The mine is expected to produce an initial 120,000 tonnes of copper oxide ore per annum.
The company said that the copper ore produced in January 2023 will be stockpiled for sale into the market in February 2023.
Critical Metals added that all copper material extracted from the mine will be sent to local processing plants, of which there are four in the Likasi and Lubumbashi areas expressing interest in purchasing Molulu copper ore.
CEO Russell Fryer commented, "This is a landmark moment for Critical Metals and all shareholders, I am delighted to be able to announce the start of production at the Molulu project, which was achieved on budget with sales of copper oxide ore expected as early as next month.
"With copper ore production now underway, the company expects to be free-cash flow positive by the end of H1 2023, showing the high cash flow generation potential under the current market conditions. We look forward to an expansion in monthly copper ore production. I believe that the Molulu project has the potential to become an exceptional producer of cobalt and copper in the DRC."
Critical Metals plc owns a controlling 100% stake in Madini Occidental Limited, which holds an indirect 70% interest in the Molulu copper/cobalt project, an ex-producing medium-scale asset in the Katangan Copperbelt in the Democratic Republic of Congo. The company said it will continue to identify further assets for potential acquisition.
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