Ivanhoe Mines announces updated greenhouse gas assessment confirming Kamoa-Kakula Copper Complex as the world’s lowest carbon-emitting major copper mine
November 2, 2023
Ivanhoe Mines announces updated greenhouse gas
assessment confirming Kamoa-Kakula Copper Complex as
the world’s lowest carbon-emitting major copper mine
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Kamoa-Kakula carbon emissions per unit of copper (Scope 1,
2 and 3) set to reduce by 46% following completion of
500,000 tonne-per-annum, on-site smelter from Q4 2024
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State-of-the-art copper smelter expected to rank as fourth
lowest carbon-emitting smelter in the world
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Refurbishment of Turbine #5 at Inga II dam 50% complete;
on-schedule and on-budget to produce 178MW of green
hydroelectric power from Q4 2024
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Ivanhoe Mines initiates work on group decarbonisation
strategy and pathway to net-zero emissions
KOLWEZI, DEMOCRATIC REPUBLIC OF CONGO – Ivanhoe Mines (TSX: IVN;
OTCQX: IVPAF) Executive Co-Chair Robert Friedland and President Marna Cloete,
announced today an updated current and future greenhouse gas (GHG)
emissions assessment of the Kamoa-Kakula Copper Complex. The assessment,
conducted by independent consultants Skarn Associates of London, England and
WSP Group of Montreal, Canada, confirms that Kamoa-Kakula is the market-
leading major copper producer in terms of GHG emissions. In addition, the
assessment highlights the significant reduction in combined Scope 1, 2 and 3
GHG emissions intensity following the completion of the direct-to-blister copper
smelter expected in Q4 2024.
The company is also pleased to report that the refurbishment of Turbine #5 at the
Inga II hydroelectric facility is approximately 50% complete and is advancing on
budget and on schedule. Turbine #5 will generate 178 MW of clean, hydroelectric
power into the DRC grid following completion in Q4 2024.
In addition, Ivanhoe Mines has appointed independent consulting firm BDO
Global of Zaventem, Belgium, to assist with shaping the company’s
decarbonisation strategy and pathway to net-zero emissions.
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Ivanhoe Mines’ Executive Co-Chair, Robert Friedland commented:
“The world is waking up to the fact that copper is the undisputed metal of
electrification, with even conservative forecasts predicting that demand will
double in size by 2035, based on massive requirements from renewable energy
generation, grid-scale transmission and storage infrastructure, and the
electrification of mass transportation.
“We have said it before – there will absolutely be no energy transition to ‘net-
zero’ without a transformational increase in the amount of primary copper
produced by the mining industry. However, the inhabitants of our planet are also
demanding that mining companies work to limit greenhouse gas emissions and
safeguard the environment. The achievements at Kamoa-Kakula demonstrate that
mining can indeed be re-invented to sustainably provide the metal that we so
desperately need, without compounding the problem of global warming and in
harmony with our employees, local communities, government partners and
stakeholders.”
“Kamoa-Kakula is proof that the Democratic Republic of the Congo will be the
future of low-carbon copper production, with its unique high-grade mineral
endowment, exceptional hydropower potential, and rapidly improving
infrastructure, such as the Lobito Corridor.”
Kamoa-Kakula Copper Complex is the world’s lowest carbon-emitting
major copper mine on a Scope 1 and 2 basis
The updated GHG emissions assessment recently completed by Skarn
Associates and WSP Group confirms that in 2022 Kamoa-Kakula produced
among the lowest carbon emissions per unit of copper in the world, and the
lowest of any major copper mine.
This is partially due to the incredibly high-grade orebodies at Kamoa-Kakula with
ore milled at an average grade of 5.5% in 2022, roughly ten times higher than the
estimated average copper head grade globally of 0.6%.
It is also a function of the DRC grid being among the world’s cleanest, with 99.5%
of grid power generated from hydroelectricity, according to the U.S. Energy
Information Administration. This includes investments in hydropower generation
that Kamoa Copper has made in partnership with DRC state utility, Société
Nationale d'Electricité (SNEL), such as the completed 78 MW Mwadingusha
hydroelectric facility and the ongoing work at Turbine #5 of the Inga II
hydroelectric facility.
On a Scope 1 and 2 basis (reported from ore to mine gate), Kamoa-Kakula’s GHG
emissions intensity in 2022 was 0.16 equivalent tonnes of carbon dioxide per
tonne of contained copper produced (CO2-e / t Cu). This comfortably ranks
Kamoa-Kakula almost at the bottom of the Scope 1 and 2 GHG emissions curve,
as shown in Figure 1.
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Figure 1. 2022 Scope 1 & 2 copper GHG emissions intensity curve,
highlighting Kamoa-Kakula and top 10 largest copper mining operations.
Kamoa-Kakula is the world’s fastest growing and greenest major copper
mine.
Notes: Kamoa-Kakula and industry peer Scope 1 and 2 GHG emissions data are estimates by Skarn
Associates. Estimates include all direct and indirect emissions to produce contained copper from ore to
mine gate. The horizontal width of each bar represents each operation’s 2022 copper production. In 2022,
Kamoa-Kakula produced 333,497 tonnes of copper in concentrate, emitting an estimated 52,314
equivalent tonnes of CO2, thereby producing 0.16 equivalent tonnes of CO2 per tonne of copper
produced. Chart sources: Skarn Associates, WSP Group, Ivanhoe Mines
Phase 3 direct-to-blister flash copper smelter will be one of the
world’s largest copper smelters and also one of the greenest
Kamoa-Kakula’s ongoing Phase 3 expansion, which is on schedule to be
completed in Q4 2024, consists of a new 5-Mtpa underground mine and
concentrator at Kamoa, an on-site direct-to-blister flash copper smelter, as well
as the refurbishment of Turbine #5 at the Inga II hydroelectric power station.
Turbine #5 will supply an additional 178 megawatts of clean hydroelectric power
to the national grid, which is sufficient to meet the power requirements of the
Phase 3 concentrator, the smelter, as well as provide spare capacity for the DRC
grid and future expansions.
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The new direct-to-blister flash copper smelter is projected to be one of the
largest, single-line copper flash smelters in the world, and the largest in Africa.
The smelter will have a nameplate production capacity is 500,000 tonnes per
annum of 99+%-pure blister copper anodes.
The 100-hectare smelter complex is under construction adjacent to the operating
Phase 1 and Phase 2 concentrator plants. The smelter has been designed to
incorporate leading-edge direct-to-blister technology supplied by Metso Outotec
of Espoo, Finland, and will meet the International Finance Corporation’s (IFC)
emissions standards.
The smelter will have a processing capacity of approximately 1.2 Mtpa of dry
concentrate feed and is designed to run on a blend of concentrate produced from
the adjacent Phase 1 and 2 concentrators at Kakula and the Phase 3 (and future
Phase 4) concentrators at Kamoa, located approximately 10 kilometers away.
According to the assessment completed by Skarn Associates and WSP Group,
the smelter will have one of the world’s lowest Scope 1 and 2 GHG emission
intensities. As shown in Figure 2, the smelter is estimated to produce 0.36 CO2-e /
t Cu. Out of the approximately 100 copper smelters analyzed globally, the smelter
is estimated to rank fourth lowest in terms of GHG emissions.
3D visualization of the new Kamoa-Kakula Smelter site in the background
(red outline), with Kamoa-Kakula’s Phase 1 and 2 concentrators in the
foreground-left. The construction of the smelter is on track to be completed
in Q4 2024.
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Figure 2. 2021 Scope 1 & 2 global copper smelter GHG emissions intensity
curve, highlighting Kamoa-Kakula smelter and world’s top 10 largest
copper smelters.
Notes: Kamoa-Kakula and industry peer Scope 1 and 2 GHG emissions data are estimates by Skarn
Associates. Estimates include all direct and indirect emissions to produce copper blister-anode at smelter
gate. The horizontal width of each bar represents each smelter’s 2021 copper production. In 2026, the
Kamoa-Kakula Smelter is estimated to produce 500,000 tonnes of copper blister-anode, emitting an
estimated 179,389 equivalent tonnes of CO2, thereby producing 0.36 equivalent tonnes of CO2 per tonne
of copper produced. Chart sources: Skarn Associates, WSP Group and Ivanhoe Mines.
Smelter investment will reduce Kamoa-Kakula carbon emissions per
unit of refined copper (Scope 1, 2 and 3) by an additional 46%
On the basis of Scope 1, 2 and 3 (partial) emissions, including downstream
emissions beyond the mine gate to produce LME-grade refined metal, Skarn
Associates and WSP Group estimate that Kamoa-Kakula’s GHG emissions-
intensity in 2022 was 2.42 CO2-e / t Cu. Following the completion of the Phase 3
expansion and the smelter, the emissions intensity of Kamoa-Kakula on a Scope
1, 2 and 3 basis is estimated to almost halve to 1.31 CO2-e / t Cu. Industry peer
data compiled by Skarn Associates ranks Kamoa-Kakula Copper Complex
comfortably within the bottom decile of the GHG emissions intensities on a
Scope 1, 2 and 3 basis as shown in Figure 3.
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Figure 3. 2022 Scope 1, 2 & 3 copper GHG emissions intensity curve,
highlighting Kamoa-Kakula and top 10 largest copper mining operations.
Following the completion of the on-site smelter, as part of the Phase 3
expansion, 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
The significant reduction in GHG emissions is due to the improvement in Scope 3
emissions from the on-site smelter. This is partially due to the smelter being
inherently lower in GHG emissions-intensity compared with typical smelters
currently used. The most significant impact is in terms of the transportation of a
higher-grade copper anode, instead of shipping copper concentrate.
Currently, copper concentrate of approximately 50% copper (excluding moisture)
is trucked up to 3,000 kilometres to the ports of Durban, South Africa, Dar es
Salaam, Tanzania and Walvis Bay, Namibia where it is exported to the
international markets to be smelted, as shown in Figure 4. Following the
completion of the Kamoa-Kakula copper smelter, copper will be transported to
port in the form of 99.7% pure copper anodes. Therefore, transporting anode with
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over double the contained copper content, compared with concentrate, requires
under half the number of trucks per unit of copper.
In addition, sulphur dioxide off-gas generated from the smelting process is
captured to produce high-strength sulphuric acid. This by-product will be sold in
liquid form domestically within the DRC Copperbelt. This significantly benefits
the GHG emissions of local mining operations that consume sulphuric acid to
leach copper from oxide ores. These operations are located between 20 and 60
kilometers away the Kamoa-Kakula. 95% of the sulphuric acid used in the DRC is
generated from energy-intensive sulphur furnaces that ‘burn’ sulphur powder that
is imported from as far as the port of Durban, approximately 3,000 km away.
Purchasing high-strength sulphuric acid domestically provides these local
mining operations with significant GHG emissions savings, due to the proximity
of the smelter and the method by which the acid is generated.
Further emissions reduction possible in the supply chain from the
Lobito Corridor
To support the further reduction of downstream (Scope 3) GHG emissions,
Kamoa-Kakula is working with its offtake partners. This includes targeting low-
emission copper refineries, where commercially feasible, as well as supporting
lower carbon-intensive logistics routes, such as the Lobito Railway Corridor.
Figure 4. Map of export routes currently used by Kamoa-Kakula in red, with
the future Lobito Rail Corridor route in orange. Trial shipments are
expected to commence along the Lobito Railway Corridor this quarter.
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As announced on August 16, 2023, Kamoa-Kakula plans to commence trial
shipments along the Lobito Railway Corridor in Q4 2023. The new Lobito Railway
Corridor is a significantly shorter and more direct route to a seaport than the
current export routes, as shown below in Figure 4.
On completion of the trial shipments, Kamoa-Kakula will be able to estimate the
GHG emissions savings from using this route, compared with the current
trucking routes.
Refurbishment of hydropower at Inga II approximately 50% complete
and on-schedule for Q4 2024 completion
The refurbishment of Turbine #5 at the Inga II hydroelectric facility is
approximately 50% complete and advancing on-schedule, and well within budget,
for completion in Q4 2024.
Originally built in the 1980s, the Inga II hydroelectric facility consists of 8 turbines
with a total generation capacity of 1.4 GW. However, the facility currently
operates at approximately 50% utilisation, with Turbine #5 having been non-
operational since 2018.
Aerial view of the Inga II hydroelectric facility, owned and operated by DRC
state-utility SNEL. Turbine #5 (of 8) is currently undergoing refurbishment,
funded by Kamoa Copper. The new equipment installed as part of the
refurbishment work contains in total approximately 100 tonnes of copper.