Trigon secures N$170 million for Kombat equipment
Over 700 jobs up for grabs soon
Minority shareholder Knowledge Katti has called for better coordination between government and investors at the settlement.
Trigon Metals, which operates the Kombat mine in partnership with local entrepreneur Knowledge Katti and state-owned Epangelo Mining, has secured funding worth N$169 million to acquire underground mining equipment ahead of restarting operations.
"This equipment will comprise the majority of the underground mining fleet for the restart of mining from the Asis West shaft at the company’s Kombat Mine in Namibia, where production is scheduled to ramp up from April 2024," reads a Trigon statement issued on Monday.
The purchase will be made through the company’s Namibian subsidiary, Trigon Mining Namibia, which has received approval from Epiroc Financial Solutions for equipment finance.
The term of the financing facility is 60 months from the shipment date of each piece of equipment, and interest will accrue at 10.95% per annum.
"Repayments will be made in 55 monthly payments, commencing six months after the respective dates of shipment," Trigon said.
Mining equipment is expected to arrive on-site at Kombat between October 2023 and March 2024.
On schedule
Jed Richardson, Trigon president and CEO, commented: "We are pleased to be working with Epiroc and thank them and the team members that worked to put this financing package in place in a timely fashion. This allows us to build out our underground fleet while we are just starting to generate cash flow at the open pit."
At Kombat, the work at the production plant has been completed on schedule, the company said. "Crushers and mills have been started. The coarse ore bins are being filled, and the first concentrate was produced on Friday, 18 August 2023, the details of which will be shared in a subsequent release. Approximately 25 000 tonne of ore is now stockpiled on the run-of-mine pad."
Katti owns 10% of Kombat Mine through his company, Havana Investments, while state-owned Epangelo Mining, the only other local shareholder in the mine, also holds 10%.
Katti’s Havana Investments initially acquired 100% ownership of Kombat Mine from South African company Grove Mining – reportedly for N$50 million – but later sold 80% of its stake to Canada’s Trigon, retaining 20%. Katti previously said he donated 10% of his shares to the local community through Epangelo.
Benefitting the community
Approached for comment yesterday, Katti said: "This is what we envisioned when we purchased the mine and all the properties from the South African owners who bought it from Weatherly – reopening the mine and creating jobs for our Namibians.
"However, the job is not done because the ultimate vision is prosperity for the communities living in the government resettlement farms nearby, notably Sommerau. We urge the ministry of rural development and the regional council to include us in jointly planning the future of these communities instead of working independently and relying on inexperienced consultants who themselves rely on other consultants with the main focus on consulting fees."
The resumption of mining activities would create about 750 jobs, officials said.
"This equipment will comprise the majority of the underground mining fleet for the restart of mining from the Asis West shaft at the company’s Kombat Mine in Namibia, where production is scheduled to ramp up from April 2024," reads a Trigon statement issued on Monday.
The purchase will be made through the company’s Namibian subsidiary, Trigon Mining Namibia, which has received approval from Epiroc Financial Solutions for equipment finance.
The term of the financing facility is 60 months from the shipment date of each piece of equipment, and interest will accrue at 10.95% per annum.
"Repayments will be made in 55 monthly payments, commencing six months after the respective dates of shipment," Trigon said.
Mining equipment is expected to arrive on-site at Kombat between October 2023 and March 2024.
On schedule
Jed Richardson, Trigon president and CEO, commented: "We are pleased to be working with Epiroc and thank them and the team members that worked to put this financing package in place in a timely fashion. This allows us to build out our underground fleet while we are just starting to generate cash flow at the open pit."
At Kombat, the work at the production plant has been completed on schedule, the company said. "Crushers and mills have been started. The coarse ore bins are being filled, and the first concentrate was produced on Friday, 18 August 2023, the details of which will be shared in a subsequent release. Approximately 25 000 tonne of ore is now stockpiled on the run-of-mine pad."
Katti owns 10% of Kombat Mine through his company, Havana Investments, while state-owned Epangelo Mining, the only other local shareholder in the mine, also holds 10%.
Katti’s Havana Investments initially acquired 100% ownership of Kombat Mine from South African company Grove Mining – reportedly for N$50 million – but later sold 80% of its stake to Canada’s Trigon, retaining 20%. Katti previously said he donated 10% of his shares to the local community through Epangelo.
Benefitting the community
Approached for comment yesterday, Katti said: "This is what we envisioned when we purchased the mine and all the properties from the South African owners who bought it from Weatherly – reopening the mine and creating jobs for our Namibians.
"However, the job is not done because the ultimate vision is prosperity for the communities living in the government resettlement farms nearby, notably Sommerau. We urge the ministry of rural development and the regional council to include us in jointly planning the future of these communities instead of working independently and relying on inexperienced consultants who themselves rely on other consultants with the main focus on consulting fees."
The resumption of mining activities would create about 750 jobs, officials said.
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