Name of the Project
Kamoa-Kakula Mining Complex.

Location
The Kolwezi district of Lualaba province, in the Democratic Republic of Congo (DRC).

Project Owner/s
Kamoa Copper – a joint venture (JV) between base and precious metals developer Ivanhoe Mines, with 39.6% ownership; Zijin Mining Group, with 39.6% ownership; Crystal River Global, with 0.8% ownership; and the DRC government, with 20% ownership.

Project Description
Ivanhoe Mines has announced outstanding economic results in the independent integrated development plan for the tier-one Kamoa-Kakula copper project.

The Kamoa-Kakula Integrated Development Plan 2020 comprises three development scenarios: the Kakula definitive feasibility study (DFS), the Kakula-Kansoko prefeasibility study (PFS) and the Kamoa-Kakula preliminary economic assessment (PEA).

Kakula
The Kakula DFS proposes the development of a Stage 1, six-million-tonne-a-year underground mine and surface processing complex at the Kakula deposit, with a capacity of 7.6-million tonnes a year built in two modules of 3.8-million tonnes a year. For this option, 110-million tonnes will be mined at an average grade of 5.22% copper producing 8.5-million tonnes of high-grade copper concentrate and containing about 10.8-billion pounds of copper.

Kakula-Kansoko
The Kakula-Kansoko 2020 PFS evaluates the development of mining activities at the Kansoko deposit in addition to the Kakula mine, initially at a rate of 1.6-million tonnes a year, to supply the concentrator at Kakula, eventually ramping up to six-million tonnes a year as the reserves at Kakula are depleted.

Kamoa-Kakula
The Kamoa-Kakula 2020 PEA assesses an additional development option of mining several deposits on the Kamoa-Kakula project as an integrated, 19-million-tonne-a-year mining, processing and smelting complex, built in multiple stages.

An initial six-million-tonne-a-year mining operation will be established at the Kakula mine on the Kakula deposit, which will be followed by a separate six-million-tonne-a-year mining operation at the Kansoko mine. A third, six-million-tonne-a-year mine will then be established at the Kakula West mine, in addition to a fourth initial mine in the Kamoa North area operating at one-million tonnes a year. The processing plant will be built in five modules of 3.8-million tonnes a year, with an ultimate capacity of one-million tonnes a year.

As the resources at the Kakula, Kansoko and Kakula West mines are mined out, production will begin sequentially at five other mines in the Kamoa North area to maintain throughput of 19-million tonnes a year to the existing concentrator and smelter complex.

Every mining operation is expected to be a separate underground mine, with a shared processing facility and surface infrastructure located at Kakula. Material will be transported to the Kakula processing complex using a system of overland conveyors. Included in this scenario is the construction of a direct-to-blister copper smelter with a capacity of one-million tonnes of copper concentrate a year.

Potential Job Creation
Once the two processing plants at Kakula are operating, Ivanhoe expects to employ almost 2 000 permanent Kamoa employees.

Net Present Value/Internal Rate of Return
The Kakula DFS yields an after-tax net present value (NPV), at an 8% discount rate, of $5.5-billion and an internal rate of return (IRR) of 77% over a 21-year mine life, with a payback of 2.3 years.

The Kakula-Kansoko PFS yields an after-tax NPV, at an 8% discount rate, of $6.6-billion and an IRR of 69% over a 37-year mine life, with a payback of 2.5 years.

The Kamoa-Kakula PEA yields a potential after-tax NPV, at an 8% discount rate, of $11.1-billion and an IRR of 56% over a mine life of more than 40 years, with a payback of 3.6 years.

Capital Expenditure
The Kakula DFS estimates peak funding at $775-million, remaining initial capital costs at $646-million and expansion capital costs at $594-million.

The Kakula-Kansoko PFS estimates peak funding at $848-million, remaining initial capital costs at $695-million and expansion capital costs at $750-million.

The Kamoa-Kakula PEA estimates peak funding at $784-million, remaining initial capital costs at $715-million and expansion capital costs at $4.46-billion.

Planned Start/End Date
The initial production of copper concentrate at the Kakula mine processing plant began on May 25, 2021, with commercial production achieved on July 1, 2021.

Phase 2 commercial production was achieved in April 2022, four months ahead of schedule.

Phase 3 expansion is expected to be completed by the fourth quarter of 2024.

Latest Developments
The Kamoa-Kakula Mining Complex produced 333 497 t of copper in concentrate in 2022, achieving the upper-end of the original 2022 production guidance range of 290 000 t to 340 000 t.

“Kamoa-Kakula has firmly established a record of excellence during the development of Phase 1 and Phase 2 operations, which has led to an industry-leading growth profile in terms of copper production that will continue as we bring Phase 3 on line.

“Kamoa-Kakula also stands out among its peers as one of the few mining operations worldwide to strongly deliver on its original 2022 production guidance, which is a further testament to the team of engineers and contractors who commissioned the Phase 2 concentrator several months ahead of schedule,” comments executive co-chairperson Robert Friedland.

The 2023 production guidance for Kamoa-Kakula is estimated at between 390 000 t and 430 000 t of copper in concentrate, following the anticipated completion of the debottlenecking programme early in the second quarter.

Meanwhile, Kamoa Copper’s previously announced debottlenecking programme is more than 90% complete and is progressing ahead of schedule. All the major equipment for the programme, including the fourth Larox filter press from Metso Outotec of Espoo, Finland, has been delivered to the site.

The final step of installation will take place over the next few months, with cold commissioning targeted to take place in April.

“With the Phase 3 expansion well on track, including the integration of Africa's largest single-line blister-copper flash smelter, Kamoa-Kakula is poised to become one of the world's leading producers of vital copper metal for global markets . . . a producer that will have one of the lowest, if not the lowest, carbon footprints in the industry,” he adds.

The Kamoa-Kakula 2023 Integrated Development Plan will be issued during the week of January 30, and will include cash cost and capital expenditure guidance.

Key Contracts, Suppliers and Consultants
DFS/PFS/PEA:
OreWin (overall report preparation, mining, logistics, power and economic analysis); China Nerin Engineering (smelter design and basic engineering contract for the smelter); DRA Global (mine surface infrastructure and metallurgical processing); Epoch Resources (tailings storage facility design); Golder Associates (hydrology models and recommendations); KGHM Cuprum R&D Centre (technical adviser on certain mining methods and geotechnical); Outotec Oyj (smelter technology); Paterson and Cooke (paste backfill plant design and surface/underground paste distribution system); SRK Consulting (mine geotechnical recommendations); Stantec Consulting International (mining and mineral reserves); Wood (mineral resources estimation); Kamoa Copper and SNEL, together with Stucky SA (engineering, procurement and construction management – Turbine 5); Voith Hydro (contractor Turbine 5); and Metso Outotec (direct blister furnace).

Contact Details for Project Information
Ivanhoe Mines, tel +1604 688 6630 (North America), tel +27 11 088 4300 (South Africa) or email info@ivanhoemines.com.