Ivanhoe Mines announces Phase 3 concentrator at Kamoa- Kakula Copper Complex has achieved commercial production
119920202 v1
August 19, 2024
Ivanhoe Mines announces Phase 3 concentrator at Kamoa-
Kakula Copper Complex has achieved commercial production
■
Kamoa-Kakula reports a record 35,941 tonnes of copper
produced in July
■
Phase 3 increases annual copper production capacity to over
600,000 tonnes, making Kamoa-Kakula the third-largest copper
mining complex globally
KOLWEZI, DEMOCRATIC REPUBLIC OF THE CONGO – Ivanhoe Mines (TSX: IVN;
OTCQX: IVPAF) Executive Co-Chairman Robert Friedland and President Marna
Cloete announced today that the Phase 3 concentrator at Kamoa-Kakula Copper
Complex in the Democratic Republic of the Congo (DRC) has reached commercial
production. In addition, Kamoa-Kakula’s Phase 1, 2 and 3 concentrators achieved
a combined monthly production record of 35,941 tonnes of copper in July.
Mr. Friedland commented: "Kamoa-Kakula's operations team continues to
achieve a very rare feat in our industry... delivering world-scale copper
development projects ahead of schedule, while also advancing smoothly through
to commercial production at an impressive rate. Kamoa-Kakula's record-setting
production in July marks the onset of rapid copper growth over the second half
of 2024, with Phase 3 on track to increase annualized production capacity from
approximately 450,000 tonnes to over 600,000 tonnes.
"We are also pursuing avenues to maximize copper production from Kamoa-
Kakula's current operating footprint, with recoveries anticipated to increase via
our 'Project 95' program, and overall throughput to also increase through the
near-term debottlenecking of the Phase 3 concentrator. We expect Ivanhoe's
aggressive copper growth story to continue as we advance planning on Kamoa-
Kakula's Phase 4 expansion, while exploration continues to impress on our
adjacent Western Foreland licenses."
Kamoa-Kakula’s Phase 3 concentrator was completed ahead of schedule on May
28, 2024, with copper concentrate production commencing on June 10, 2024. The
Phase 3 concentrator subsequently achieved commercial production. This
accelerated ramp-up schedule was primarily due to experience gained from the
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ramp-up of the Phase 1 and 2 concentrators that also achieved commercial
production over a similar period of time.
The Phase 3 concentrator is consistently milling at the nameplate processing rate
of 5 million tonnes of ore per annum. Milling has also exceeded nameplate
capacity on multiple occasions over 24 hours by as much as 19%.
Commissioning of the fine-grinding mills is the final stage of ramp-up required to
achieve steady state production, increasing recovery from approximately 80% to
the nameplate target of 86%. The fine-grinding mills, manufactured by Metso
Corporation of Helsinki, Finland, are currently undergoing installation with
commissioning expected to commence from the end of August.
Following the “Project 95” basic engineering work that was recently completed
on the Phase 1 and 2 concentrators, Kamoa Copper’s engineering team will soon
commence study work targeting an increase in the Phase 3 concentrator’s
recovery rate to over 90%, as well as a further increase in processing capacity.
Since first production, the Phase 3 concentrator has produced over 11,000 tonnes
of copper in concentrate. The first sale of copper concentrate produced by the
Phase 3 concentrator took place in July, with all concentrate produced so far toll
smelted at the nearby Lualaba Copper Smelter (LCS) in Kolwezi. To date, over
33,000 wet metric tonnes of copper concentrate have been delivered to LCS. In
the fourth quarter, prior to the heat-up of the on-site copper smelter at Kamoa-
Kakula in early 2025, a portion of the Phase 3 copper concentrate will be
stockpiled on-site with the remainder delivered to LCS.
On a stand-alone basis, the Phase 3 concentrator is expected to produce
approximately 150,000 tonnes of copper per annum. In addition to the Phase 1
and 2 concentrators, total copper production capacity at Kamoa-Kakula is
expected to be over 600,000 tonnes per annum, making it the third largest copper
mining operation globally.
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Stockpiles of Phase 3 copper concentrate inside the concentrate storage
warehouse. Concentrate is transported in bulk to the nearby Lualaba
copper smelter in Kolwezi for smelting to 99.7% copper blister.
Aerial view of Kamoa-Kakula’s copper smelter construction site
(foreground) and Phase 1 and 2 concentrators (background). The smelter
project is over 86% complete and on-schedule for construction completion
by year-end. Once complete, it will be the largest copper smelter in Africa.
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Figure 1. 2022 Scope 1, 2 & 3 copper greenhouse gas (GHG) emissions
intensity curve, highlighting Kamoa-Kakula and the top 10 largest copper
mining operations. Following the completion and ramp-up of the on-site
smelter, the GHG emissions intensity is expected to almost halve.
Notes: Kamoa-Kakula and industry peer Scope 1, 2 and 3 GHG emissions data are estimates by Skarn
Associates. Estimates include emissions to produce refined LME-grade copper, from ore to refinery gate.
The emissions estimates for Scope 3 include Category 9, downstream transportation and distribution, and
Category 10, processing of sold products. The horizontal width of each bar represents each operation’s
2022 copper production. In 2022, Kamoa-Kakula produced 333,497 tonnes of copper, emitting an
estimated 791,939 equivalent tonnes of CO2, thereby producing 2.42 equivalent tonnes of CO2 per tonne
of copper produced. In 2026, Kamoa-Kakula is estimated to produce 632,000 tonnes of copper, emitting
an estimated 830,894 equivalent tonnes of CO2, thereby producing 1.31 equivalent tonnes of CO2 per
tonne of copper produced. Chart sources: Skarn Associates, WSP Group, Ivanhoe Mines
Qualified Persons
Disclosures of a scientific or technical nature at the Kamoa-Kakula Copper
Complex in this news release have been reviewed and approved by Steve Amos,
who is considered, by virtue of his education, experience, and professional
association, a Qualified Person under the terms of NI 43-101. Mr. Amos is not
considered independent under NI 43-101 as he is Ivanhoe Mines’ Executive Vice
President, Projects. Mr. Amos has verified the technical data disclosed in this
news release.
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Ivanhoe has prepared an independent, NI 43-101-compliant technical report for
the Kamoa-Kakula Copper Complex, which is available on the company’s website
and under the company’s SEDAR+ profile at www.sedarplus.ca:
• Kamoa-Kakula Integrated Development Plan 2023 Technical Report dated
March 6, 2023, prepared by OreWin Pty Ltd.; China Nerin Engineering Co.
Ltd.; DRA Global; Epoch Resources; Golder Associates Africa; Metso
Outotec Oyj; Paterson and Cooke; SRK Consulting Ltd.; and The MSA
Group.
The technical report includes relevant information regarding the assumptions,
parameters, and methods of the mineral resource estimates on the Kamoa-Kakula
Copper Complex cited in this news release, as well as information regarding data
verification, exploration procedures, and other matters relevant to the scientific
and technical disclosure contained in this news release.
About Ivanhoe Mines
Ivanhoe Mines is a Canadian mining company focused on advancing its three
principal projects in Southern Africa; the expansion of the Kamoa-Kakula Copper
Complex in the DRC, the construction of the tier-one Platreef palladium-nickel-
platinum-rhodium-copper-gold project in South Africa; and the restart of
production at the ultra-high-grade Kipushi zinc-copper-germanium-silver mine,
also in the DRC.
Ivanhoe Mines also is exploring across circa 1,808 km2 of highly prospective, 60-
100% owned exploration licences in the Western Forelands, located adjacent to
the Kamoa-Kakula Copper Complex in the DRC. Ivanhoe is exploring for new
sedimentary copper discoveries, as well as expanding and further defining its
high-grade Makoko, Kiala, and Kitoko copper discoveries as the company’s next
major development projects.
Information contact
Follow Robert Friedland (@robert_ivanhoe) and Ivanhoe Mines (@IvanhoeMines_)
on X.
Investors
Vancouver: Matthew Keevil +1.604.558.1034
London: Tommy Horton +44 7866 913 207
Media
Tanya Todd +1.604.331.9834
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Website: www.ivanhoemines.com
Forward-looking statements
Certain statements in this release constitute “forward- looking statements” or “forward- looking
information” within the meaning of applicable securities laws. Such statements and information
involve known and unknown risks, uncertainties , and other factors that may cause the actual
results, performance, or achievements of the Company, its projects, or industry results, to be
materially different from any future results, performance, or achievements expressed or implied
by such forward-looking statements or information. Such statements can be identified using words
such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”,
“scheduled”, “forecast”, “predict” and other similar terminology, or state that certain acti ons,
events, or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. These
statements reflect the Company’s current expectations regarding future events, performance, and
results and speak only as of the date of this release.
Such statements include without limitation : (i) statements that Phase 3 will increase annualized
production capacity from approximately 450,000 tonnes to over 600,000 tonnes ; (ii) statements
that recovery rates from the Phase 1 and 2 concentrators are expected to increase via the 'Project
95' program and that overall throughput is also expected to increase through the near -term
debottlenecking of the Phase 3 concentrator ; (iii) statements that commissioning of the fine -
grinding mills is the final stage of ramp- up required to achieve steady state production of the
Phase 3 concentrator and that commissioning is expected to commence from the end of August
2024; (iv) statements that Kamoa Copper’s engineering team will soon commence study work
targeting a further increase in the Phase 3 concentrator’s nameplate recovery rate from 86% to
over 90%; (v) statements that before the heat-up of the on-site copper smelter at Kamoa-Kakula,
all copper concentrate produced by the Phase 3 concentrator will continue to be smelted at LCS,
and that in the fourth quarter, a portion of the Phase 3 copper concentrate will start to be stockpiled
on-site in anticipation for the smelter heat -up, which is expected in early 2025; (vi) statements
that the Phase 3 concentrator is expected to produce approximately 150,000 tonnes of copper
per annum, and (v) statements t hat total copper production capacity following the completion of
the Phase 3 expansion at Kamoa-Kakula is expected to be over 600,000 tonnes per annum,
making it the third largest copper mining operation globally.
Furthermore, concerning this specific forward- looking information concerning the operation and
development of the Kamoa- Kakula Copper Complex, the company has based its assumptions
and analysis on certain factors that are inherently uncertain. Uncertainties include: (i) the
adequacy of infrastructure; (ii) geological characteristics; (iii) metallurgical characteristics of the
mineralization; (iv) the ability to develop adequate processing capacity; (v) the price of copper;
(vi) the availability of equipment and facilities necessary to complete development and
exploration; (vii) the cost of consumables and mining and processing equipment; (viii) unforeseen
technological and engineering problems; (ix) accidents or acts of sabotage or terrorism; (x)
currency fluctuations; (xi) changes in regulations; (xii) the compliance by joint venture partners
with terms of agreements; (xiii) the availability and productivity of skilled labour; (xiv) the regulation
of the mining industry by various governmental agencies; (xv) the ability to raise sufficient capital
to develop such projects; (xvi) changes in project scope or design; (xvii) recoveries, mining rates
and grade; (xviii) political factors; (xviii) water inflow into the mine and its potential effect on mining
operations, and (xix) the consistency and availability of electric power.
Forward-looking statements and information involve significant risks and uncertainties, should not
be read as guarantees of future performance or results , and will not necessarily be accurate
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indicators of whether such results will be achieved. Many factors could cause actual results to
differ materially from the results discussed in the forward- looking statements or information,
including, however not limited to, the factors discussed above and under the “Risk Factors” and
elsewhere in the company’s MD&A for the three and six months ended June 30, 2024 and in its
current annual information form, as well as unexpected changes in laws, rules or regulations, or
their enforcement by applicable authorities; the failure of parties to contracts with the company to
perform as agreed; social or labour unrest; changes in commodity prices; and the failure of
exploration programs or studies to deliver anticipated results or results that would justify and
support continued exploration, studies, development or operations.
Although the forward- looking statements contained in this release are based upon what
management of the company believes are reasonable assumptions, the company cannot assure
investors that actual results will be consistent with these forward- looking statements. These
forward-looking statements are made as of the date of this release and are expressly qualified in
their entirety by this cautionary statement. Subject to applicable securities laws, the company
does not assume any obligation to update or revise the forward -looking statements contained
herein to reflect events or circumstances occurring after the date of this release.
The company’s actual results could differ materially from those anticipated in these forward -
looking statements as a result of the factors outlined in the “Risk Factors” section in the company’s
MD&A for the three and six months ended June 30, 2024 and its current annual information form.