Katanga Mining Falters Amidst Change and Instability by: FP Trading Desk posted on: October 05, 2008 | about stocks: AVMNF.PK / KATFF.PK / LMC Despite a broad market rally, shares of Katanga Mining Ltd. (KATFF.PK) were down sharply on Friday, a day after the miner filled the two roles of CEO and COO.
Steven Isaacs, managing director of Glencore Finance AG, a division of Glencore International AG, become interim chief executive officer. He replaces Arthur Ditto who announced his retirement in June. Tim Henderson becomes interim chief operating officer. He is the current executive director of operations for Glencore in Africa.
Glencore owns 8.5% of Katanga, which is developing Africa’s largest copper mine, but that figure could climb to 12.4% under a convertible loan facility.
The company’s Tenke Fungurume copper and cobalt project Freeport-McMoRan Copper & Gold Inc. in the Democratic Republic of Congo [DRC], however, faces continued risks associated with political instability. The DRC’s Prime Minister quit his post in late September, which served to only compound doubts for miners there, amidst the government’s mining contract review. Other Canadian companies in the region include Anvil Mining Ltd. (AVMNF.PK) and Lundin Mining Corp. (LMC).
On Friday, DRC rebels said they are unanimously withdrawing from an agreement to cease hostilities with President Joseph Kabila’s government. This has some experts suggesting that the country could become even more unstable.
AVM Price at posting:
$5.00 Sentiment: None Disclosure: Not Held
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