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March 2016 MODERN MINING13
MINING News
MawsonWest, listed on the TSX (but based
in Perth, Australia), has decided to place
its small Kapulo copper mine in northern
Katanga in the DRC on care and mainte-
nance. The company is planning to cease
mining at the end of March, with milling
operations continuing into April. Kapulo is
a relatively newmine, with commissioning
having only started in late 2014.
The company says it has made this
decision due to continued weakness in
the price of copper, which has resulted in
unprofitable and unsustainable mining
operations at the mine.
“At current prices, the company is pro-
ducing at levels insufficient to cover its
operational and financial obligations, and is
also depleting Kapulo’s short mine life (four
years) to generate little to no free cash flow,”
comments Anthony Lloyd, Acting CEO of
Mawson West. “The company has deter-
mined that the best course of action is to
place the mine on care andmaintenance in
order to preserve the asset until such time
as the price of copper recovers sufficiently
to permit profitable mining. Our majority
shareholder and secured creditors are in
agreement with this course of action and
have agreed to arrangements which will
permit this to occur.
”While the financing is quite dilutive
and will, if approved by minority
shareholders, likely result
in the com-
The processing plant at Kapulo in the DRC. Mawson West has decided to place the mine on care and mainte-
nance as a result of the low copper price (photo: Mawson West).
MawsonWest to stop operations at Kapulo
pulsory acquisition of their interests, the
company requires financing in any event
and the alternative would more than likely
be insolvency proceedings whichwould be
of uncertain outcome for minor-
ity shareholders.” 
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