Ivanhoe Mines provides 2022 production results and 2023 production guidance for the Kamoa-Kakula Mining Complex
d
January 9, 2023
Ivanhoe Mines provides 2022 production results and 2023
production guidance for the Kamoa-Kakula Mining Complex
■
Kamoa-Kakula produced approximately 333,500 tonnes of
copper in 2022, achieving the upper end of its guidance range
■
Year-over-year copper production increased by 215%
■
Kamoa-Kakula sets 2023 production guidance at between
390,000 and 430,000 tonnes of copper in concentrate
■
Debottlenecking program over 90% complete; soon increasing
the rate of annualized production to 450,000 tonnes of copper
in concentrate
■
Kamoa-Kakula 2023 Integrated Development Plan will be
issued during the week of January 30, 2023; and will include
cash cost and capital expenditure guidance
■
Kamoa Copper’s outstanding growth profile is aligned with
first-class sustainability and social initiatives, as well as the
goal of producing the world’s ‘greenest copper’
RIYADH, SAUDI ARABIA – Ivanhoe Mines’ (TSX: IVN; OTCQX: IVPAF) Executive
Co-Chair Robert Friedland and President Marna Cloete announced today, ahead
of the 2023 Future Minerals Forum at the King Abdulaziz International Conference
Centre in Riyadh, Saudi Arabia, that the Kamoa-Kakula Mining Complex in the
Democratic Republic of Congo (DRC) produced 333,497 tonnes of copper in
concentrate in 2022, achieving the upper-end of the original 2022 production
guidance range of 290,000 to 340,000 tonnes. Kamoa-Kakula’s 2022 production
achievement represents a year-over-year increase of 215%.
The 2023 annual production guidance for Kamoa-Kakula is estimated at between
390,000 to 430,000 tonnes of copper in concentrate, following the anticipated
completion of the debottlenecking program early in the second quarter of 2023.
2
Mr. Friedland commented: “Kamoa-Kakula has firmly established a track 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 online. 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.”
“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. Ivanhoe Mines looks forward to a long, prosperous
partnership with the Democratic Republic of Congo government, the Congolese
people, our joint-venture partners, and the international investors that have been
integral in making these exceptional achievements possible.”
Watch the video showcasing Kamoa-Kakula’s 2022 operational
highlights: https://vimeo.com/787287927/780de2f2b9
2023 Production Guidance for the Kamoa-Kakula Mining Complex
Kamoa-Kakula’s 2023 production guidance is based on several assumptions and
estimates as of December 31, 2022, including among other things, assumptions
about the timing for the completion of the debottlenecking program. Guidance
involves estimates of known and unknown risks, uncertainties and other factors
that may cause the actual results to differ materially.
Kamoa-Kakula 2023 Guidance
Contained copper in concentrate (tonnes) 390,000 - 430,000
All figures are on a 100%-project basis and metal reported in concentrate is before refining losses or
payability deductions associated with smelter terms.
Kamoa-Kakula produced 333,497 tonnes of copper in 2022, an
increase of 215% compared with 2021
Kamoa-Kakula’s 2022 production guidance was raised from an initial range of
290,000 to 340,000 tonnes, following the successful ramp-up of Kamoa Copper’s
Phase 2 concentrator plant, which was commissioned several months ahead of
schedule and declared commercial production on April 7, 2022.
3
During the fourth quarter, Kamoa-Kakula produced 92,761 tonnes of copper.
Kamoa-Kakula also reported 93,288 tonnes of copper floated, which includes the
contained copper still in the circuit that was floated, but has not yet been filtered
to produce a final concentrate. As of December 31, 2022, there was a balance of
approximately 5,670 tonnes of copper in the circuit, which will be filtered into a
final concentrate once the debottlenecking program is complete. For the full year
of 2022, in line with the Kamoa-Kakula’s upper end of guidance, 338,087 tonnes of
contained copper were floated.
The difference between floated and filtered copper arises from the current
bottleneck in concentrate filter capacity, as the Phase 1 and 2 milling and
flotation circuits continue to operate above design capacity. Floated copper is
temporarily stored as a slurry in a fully-lined pond, which will be reclaimed into
the concentrate thickener and filter press once the fourth Larox filter press is
installed as part of the debottlenecking program.
Kamoa Copper’s previously announced debottlenecking program is over 90%
complete and is progressing ahead of schedule. All the major equipment for the
program, 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
2023.
The new concentrate thickener nears completion. Once complete, the
Phase 1 and 2 concentrators are expected to reach a combined processing
capacity of 9.2 million tonnes per annum.
4
In the foreground, the expansion of the concentrate storage and dispatch
warehouse is nearing completion. The fourth Larox filter has been
delivered to site and will soon be installed at the rear of the facility.
As part of the debottlenecking program, the new scavenger-cleaner
flotation cell (circled in red) on the Phase 1 concentrator is undergoing
final installation.
The debottlenecking program will increase the combined processing capacity of
the Phase 1 and Phase 2 concentrator plants to approximately 9.2 million tonnes
per annum and increase the rate of copper production to approximately 450,000
tonnes per annum.
5
During 2022, the Kamoa-Kakula Mining Complex milled approximately 7.1 million
tonnes of ore at an average feed grade of 5.5% copper and produced 333,497
tonnes of copper in concentrate. A total of 2.0 million ore tonnes were milled
during the fourth quarter at an average feed grade of 5.4% copper.
Tonnes of ore milled in the fourth quarter were slightly lower by approximately
3.5%, on a quarter-on-quarter basis due to intermittent electrical power supply
disruptions on the DRC grid. Kamoa Copper is working with the DRC state-owned
power utility, SNEL, to minimize any future disruptions to operations.
On December 27, 2022, a total of 27,424 dry tonnes of ore were milled through the
Phase 1 and 2 concentrators ̶ a daily record for both facilities. This is equivalent
to an milling rate of 9.1 million tonnes per annum (after accounting for
availability).
A total of 120,000 tonnes were drawn from the run-of-mine stockpiles in the fourth
quarter. While the ongoing expansion of underground infrastructure at the Kakula
Mine takes place, ore continues to be drawn periodically from the stockpile to
maximize copper production, as the concentrators are currently operating over
design capacity.
The recently completed east truck tip and bin at the Kakula underground
mine will increase mining rates to feed the Phase 1 and 2 concentrators.
Kamoa-Kakula’s high- and medium-grade ore surface stockpiles totaled
approximately 4.08 million tonnes at an estimated, blended average grade of
4.05% copper. Contained copper in the stockpiles at the end of December totaled
6
more than 165,000 tonnes (the current copper price is approximately $8,600 per
tonne).
Copper flotation recoveries during 2022 from the Phase 1 and 2 concentrators
averaged 86%.
The Kamoa Copper process engineering team, together with several
internationally-recognized external metallurgy specialists, continue to investigate
the feasibility of new technologies to economically recover additional copper
from the tailings stream of the Phase 1 and 2 concentrators, to potentially
increase overall recoveries above Kamoa-Kakula’s 86% design target.
The Kamoa-Kakula 2023 Integrated Development Plan expected to be
released later this month, in addition to cash cost and capital
expenditure guidance
An updated 2023 Integrated Development Plan (Kamoa-Kakula 2023 IDP) for the
life-of-mine of the Kamoa Kakula Mining Complex, including both the Phase 3 and
Phase 4 expansions, as well as the smelter, is expected to be released during the
week of January 30, 2023.
Following the publication of the Kamoa-Kakula 2023 IDP, Ivanhoe Mines also will
provide a guidance range for C1 cash costs (C1) per pound of payable copper for
2023, as well as updated capital cost guidance for 2023 and 2024 across the
Kamoa-Kakula, Platreef and Kipushi projects.
Safety briefing held on the construction site of the Phase 3 concentrator.
To date, the construction sites for the Phase 3 concentrator and smelter, as
well as the housing and community projects have achieved zero recordable
injuries and an impressive 7,486,670 hours free of lost time injury (LTI).
7
Ivanhoe Mines to issue 2022 financial results and host conference call
for investors on February 27
Ivanhoe Mines will report its Q4 and full-year 2022 financial results, and a detailed
update on its operations, before the market opens on Monday, February 27, 2023.
The company plans to hold an investor conference call to discuss the full-year
2022 financial results on the same day. Details of the call with shared closer to
the date.
An audio webcast recording of the conference call, together with supporting
presentation slides, will be available on Ivanhoe Mines’ website at
www.ivanhoemines.com.
After issuance, the Financial Statements and Management’s Discussion and
Analysis will be available at www.ivanhoemines.com and www.sedar.com.
Qualified Persons
Disclosures of a scientific or technical nature at the Kamoa-Kakula Mining
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.
Other disclosures of a scientific or technical nature regarding the stockpiles in
this news release have been reviewed and approved by George Gilchrist, who is
considered, by virtue of his education, experience and professional association, a
Qualified Person under the terms of NI 43-101. Mr. Gilchrist is not considered
independent under NI 43-101 as he is the Vice President, Resources of Ivanhoe
Mines. Mr. Gilchrist has verified the other technical data regarding the surface
stockpiles disclosed in this news release.
Ivanhoe has prepared an independent, NI 43-101-compliant technical report for
the Kamoa-Kakula Project, which is available on the company’s website and
under the company’s SEDAR profile at www.sedar.com:
• Kamoa-Kakula Integrated Development Plan 2020 dated October 13, 2020,
prepared by OreWin Pty Ltd., China Nerin Engineering Co., Ltd., DRA
Global, Epoch Resources, Golder Associates Africa, KGHM Cuprum R&D
Centre Ltd., Outotec Oyj, Paterson and Cooke, Stantec Consulting
International LLC, SRK Consulting Inc., and Wood plc.
8
The technical report includes relevant information regarding the assumptions,
parameters and methods of the mineral resource estimates on the Kamoa-Kakula
Mining 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 Mining
Complex in the DRC, the construction of the tier-one Platreef palladium-rhodium-
platinum-nickel-copper-gold project in South Africa; and the restart of the historic
ultra-high-grade Kipushi zinc-copper-germanium-silver mine, also in the DRC.
Ivanhoe Mines is also exploring for new copper discoveries across its circa
2,400km2 of 90-100% owned exploration licences in the Western Foreland, which
are located adjacent to, or in close proximity to, the Kamoa-Kakula Mining
Complex in the DRC.
Information contact
Follow Robert Friedland (@robert_ivanhoe) and Ivanhoe Mines (@IvanhoeMines_)
on Twitter.
Investors
Vancouver: Matthew Keevil +1.604.558.1034
London: Tommy Horton +44 7866 913 207
Media
Tanya Todd +1.604.331.9834
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 by the
use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”,
“anticipate”, “estimate”, “scheduled”, “forecast”, “predict” and other similar terminology, or state