Kombat promises more jobs after current 500

Investor Knowledge Katti says a profitable Kombat mine, which he co-owns through his company Texel Mining and Exploration, would help diversify the local economy and empower communities.The mine already boasts around 500 jobs, and with big plans for the rest of this year and a busy 2024, this figure may increase remarkably.Majority owned by Canada’s Trigon Metals, the mine is progressing rapidly and according to CEO Jed Richardson, “there&#039;s still growth ahead for us”."We&#039;re producing, we&#039;re making money,” he added.He met with current and potential investors of the Canadian- and German-listed company virtually on Tuesday, saying: "Things are moving forward and growing at Kombat".This follows a remarkable October for the mine, during which 901 tonnes of copper concentrate were produced at a grade of 29.2% copper, and 241 grams per tonne of silver. For October, 28 771 tonnes could be put through the mill with 88% copper recovery from the ore. Further stock of around 22 000 tonnes of 1.2% copper ore has already been stored at the mine, equal to a month&#039;s consumption.Sold and delivered"In the month the plant reached commercial production and we realised our first concentrate sales, concentrate production was above expectation. We are on track to turn a profit from October’s production operations and are very pleased with the effort of the team and the performance of the mine and mill."These sales were concluded by trader IXM at US$8 000 (about N$158 000) a tonne and are delivered in consignments of 500 tonnes at the port of Walvis Bay, for which 90% is payable on delivery, he elaborated. Two of the shipments have already been sold and delivered, he added. With no debt to pay off, revenue is collected to pay for underground expansion. Through an agreement with Trigon&#039;s largest single shareholder Eric Sprott, US$37.5 million (about N$741 million) was collected in exchange for all the silver from Kombat for the rest of the mine&#039;s existence. However, Richardson said the plan is to buy back these silver rights again.Working capitalMeanwhile, the mine has US$10 million (about N$197.6 million) in cash available for expansion, and with each concentrate shipment sold, US$750 000 (about N$14.8 million) is added to the available cash, Richardson said. "When we start underground, our jobs, our training and our electricity costs - especially for the water pumps - will increase. We are now working on financing to make this necessary working capital available," he said.He does not expect Trigon to return to the stock exchange to raise the working capital. "We already have enough to go underground.”Mining is currently taking place from the open-pit mine, but equipment needed to start the long-sought-after return underground is already expected before the end of December. This includes modern pumps to siphon underground water that caused flooding and the suspension of mining operations in 2008. Further expansion of the mill plant and the drilling of the underground resources are also planned for the coming months. Even at today&#039;s buyer&#039;s price, income before interest, taxes, depreciation and amortisation at US$50 million (N$988 million) a year should make any short-term debt affordable, he added.Govt collaborationKatti’s Texel Mining and Exploration and state-owned Epangelo Mining each own 10% in the Kombat mine.Katti yesterday said: “Since our initial investment in 2012, my biggest attraction to Kombat was driven by the community vision in a copper mining town. We should strive for a balanced and sustainable future that maximises the benefits of mining while addressing social, economic and environmental challenges”. He reiterated again that government leaders need to bring their part in full.“We really hope that all government leaders responsible in the region must have an active engagement with the leadership of the mine and also start an open dialogue and collaboration with the community, especially the impoverished community of Neu Sommerau.”

Kombat promises more jobs after current 500

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Namibian Sun 2025-05-02

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Kombat promises more jobs after current 500

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Namibian Sun 2025-05-02

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