Ivanhoe Mines reports first concentrate from Kamoa-Kakula’s Phase 3 concentrator on June 10, several months ahead of schedule
June 11, 2024
Ivanhoe Mines reports first concentrate from Kamoa-Kakula’s
Phase 3 concentrator on June 10, several months ahead of
schedule
■
Production from Kamoa-Kakula’s Phase 1 and 2 concentrators
achieved a near-record 35,474 tonnes of copper in May,
benefitting from additional imported power
NEW YORK, NEW YORK – Ivanhoe Mines’ (TSX: IVN; OTCQX: IVPAF) Executive
Co-Chair Robert Friedland announced today, ahead of his appearance at the 2024
Evercore Global Clean Energy & Transition Technologies Summit at the Mandarin
Oriental Hotel in New York, that on June 10, 2024, first concentrate production by
Kamoa-Kakula’s Phase 3 concentrator in the Democratic Republic of the Congo
(DRC) was celebrated by the mine-site management and employees. First copper
concentrate was achieved approximately two weeks after the first feed of ore into
the concentrator, as announced on May 28, 2024. The Phase 3 concentrator
expansion was completed nearly two quarters ahead of schedule and is expected
to boost production to over 600,000 tonnes of copper per annum, with ramp-up to
commercial production targeted for early in the third quarter.
Watch a video showing the completion of the Phase 3 concentrator
and production of first concentrate:
https://vimeo.com/956315897/71af95aa07?share=copy
The Phase 3 concentrator will process ore from the newly developed and
adjacent Kamoa 1 and 2 underground mines, as well as connect the new Kansoko
underground mine. At 5 million tonnes per annum (Mtpa), the design capacity of
the Phase 3 concentrator is 30% larger than the original design capacities of the
Phase 1 and 2 concentrators, located approximately 10 kilometres to the south.
2
The Phase 3 concentrator increases the total design processing capacity of the
Kamoa-Kakula Copper Complex to 14.2 Mtpa. Phase 3 is expected to increase
annualized copper production to greater than 600,000 tonnes per annum,
positioning Kamoa-Kakula as the world’s third-largest copper mining complex,
and the largest copper mine on the African continent. See Figure 1.
Figure 1. World’s top 10 copper mines estimated for 2025, by paid copper
production per annum (kt).
Source: Wood Mackenzie, 2024 (based on public disclosure and the Kamoa-Kakula Phase 3 annualized production estimate of
approx. 600,000 tonnes of copper. (The Kamoa-Kakula data has not been reviewed by Wood Mackenzie).
Production from Kamoa-Kakula’s Phase 1 and 2 concentrators achieved a near
record of 35,474 tonnes of copper in May. Production in May 2024, which was the
best monthly performance of the past 12 months, benefitted from improved
power stability since the end of the first quarter. Improved power stability has
enabled increased mining rates of the higher-grade areas in the Kakula
underground mine.
Improvements in power stability in recent months are due in large part to
imported power from Zambia and Mozambique. An additional 20 megawatts (MW)
of imported power have been secured since the beginning of June, increasing the
total imported power consumed by the Kamoa-Kakula Copper Complex to 55 MW.
Subject to availability, it is expected that total imported power will increase up to
100 MW by the end of 2024. Kamoa-Kakula is expected to continue being
supported by imported power until grid stability improves. A large majority of the
imported power from Mozambique and Zambia is hydroelectric.
0
200
400
600
800
1,000
1,200
1,400Paid Cu Production (Kt)
3
Concurrently, Kamoa Copper continues to work closely with the DRC’s state-
owned power company, La Société Nationale d’Electricité (SNEL), to deliver the
solutions for the identified causes of the instability experienced across the
southern DRC’s grid infrastructure. Project delivery of the grid improvements is
expected to be completed in 2025.
In addition, Kamoa Copper’s engineering team continues to expand its on-site,
backup-power generator capacity, to ensure there is on-site redundancy for the
Phase 1, 2 and 3 operations. On-site, backup-power generator capacity is
scheduled to increase, via a phased roll-out, to a total of more than 200 MW by
the end of 2024. The generator farm sites are being built adjacent to the Phase 1
and 2 concentrators and smelter at Kakula, as well as adjacent to the Phase 3
concentrator at Kamoa.
10 MW of new on-site, backup-power generator capacity was recently installed,
increasing Kamoa-Kakula’s immediate total installed backup capacity to 73 MW.
An additional 60 MW is expected to be installed within the coming month,
increasing the total backup capacity to 133 MW by the end of July. Peak on-site
power demand from Phase 1 and 2 operations is approximately 105 MW. The
Phase 3 concentrator adds an additional power requirement of 45 MW, once fully
ramped in the third quarter. In addition, the smelter will require a further 75 MW of
power once fully ramped up.
(L-R) Eddie Mong, Senior Engineer; Riaan Vermeulen, Managing Director;
Dodo Mbay, Executive, Concentrators; Minty Cai, Chief Executive, Finance;
Zhang “Frank” Xingxun, Executive Director; Annebel Oosthuizen, Chief
Executive, Commercial; and, Ion Muzama Sumbu, Managerial Lead,
Concentrators of Kamoa Copper holding the batch of first concentrate from
the Phase 3 concentrator on June 9, 2024.
4
Significant growth opportunities progressing to further increase
copper production with ‘Project 95’, Phase 3 de-bottlenecking
program, and accelerating Phase 4 expansion and beyond
Basic engineering of the previously announced “Project 95” is expected to be
completed shortly. Project 95 is an initiative targeting an increased overall
metallurgical copper recovery rate of Kamoa-Kakula’s Phase 1 and 2
concentrators of approximately 95%, up from the current rate of approximately
87%.
Once the Phase 3 concentrator has achieved commercial production, Kamoa-
Kakula’s engineering team will gather operating data with the view to initiating a
de-bottlenecking program to further increase the Phase 3 concentrator
processing capacity above 5 Mtpa. The Phase 1 and 2 concentrators completed a
de-bottlenecking program in February 2023, which increased processing capacity
by approximately 20% above the original design throughput.
Following the completion of Phase 3, and given current market conditions,
Kamoa-Kakula’s engineering team is investigating the acceleration of the
project’s planned Phase 4 expansion. The Phase 4 concentrator will be
positioned adjacent to the Phase 3 concentrator, with a minimum processing
capacity of 5 Mtpa, and will share common infrastructure with Phase 3, including
the front end (crushing and screening plant), which will reduce capital costs.
An updated life-of-mine integrated development plan for the Kamoa-Kakula
Copper Complex, including the Phase 3 expansion, smelter and Project 95, as
well as further optimization initiatives and the planned Phase 4 expansion is
expected to be completed by the end of 2024.
Exploration work is also progressing well on the planned 70,000-metre drill
program at Ivanhoe’s majority-owned, 2,650-km2 Western Foreland license
package adjacent to Kamoa-Kakula. Currently, there are approximately 10 drill
rigs active in the Makoko and Kitoko areas. This initial phase of the program is
designed to expand and delineate these high-grade copper discoveries ahead of
potential engineering and planning work to study opportunities to also accelerate
copper production growth from these licenses. Further exploration is planned on
regional targets deemed prospective for additional sediment-hosted, high-grade
copper deposits.
5
Senior management addressing workers inside the Phase 3 concentrate
storage and load-out facility, during the celebration of first concentrate on
June 9, 2024.
Sunrise June 9, 2024, over the Phase 3 concentrator’s ball mills.
Construction of the Phase 3 concentrator was completed on budget and
several months ahead of schedule.
6
Disclosure of technical information
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.
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 the
historic ultra-high-grade Kipushi zinc-copper-germanium-silver mine, also in the
DRC.
Ivanhoe Mines also is exploring and pursuing development opportunities across
circa 2,650 km2 of highly prospective, 60-100% owned 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.
Follow Robert Friedland (@robert_ivanhoe) and Ivanhoe Mines (@IvanhoeMines_)
on X.
7
Information contacts
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 news 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
that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or
be achieved. Readers are cautioned not to place undue reliance on forward-looking information
or statements. These statements reflect the company’s current expectations regarding future
events, performance and results and speak only as of the date of this news release.
Such statements include, without limitation: (i) statements that Phase 3 is expected to increase
annualized copper production to more than 600,000 tonnes, positioning Kamoa-Kakula as the
world’s third largest copper mining complex, and the largest copper mine on the African
continent; (ii) statements that ramp-up to commercial production of the Phase 3 concentrator is
targeted for early in the third quarter; (iii) statements that the Phase 3 concentrator will process
ore from the adjacent Kamoa 1 and 2 underground mines, as well as the connecting Kansoko
underground mine; (iv) statements that total imported power at the Kamoa Kakula Copper
Complex is expected increase up to 100 MW by the end of 2024; (v) statements that Kamoa-
Kakula is expected to continue to consume imported power until grid stability improves, with
projected grid improvements expected to be completed by mid-2025; (vi) statements that on-site
backup-power generator capacity is scheduled to increase, via a phased roll-out, to a total of
over 200 MW by the end of 2024; (vii) statements that an additional 60 MW of back up
generator capacity is expected to be installed within the coming month, increasing the total
backup capacity to 133 MW by the end of July; and (viii) statements that the Phase 3
concentrator adds an additional requirement of 45 MW once fully ramped in the third quarter
and that the smelter will require a further 75 MW of power once fully ramped up throughout
2025; (ix) statements that basic engineering of the previously announced “Project 95” is
expected to be completed shortly; (x) statements that “Project 95” would increase overall
metallurgical copper recovery rate of Kamoa-Kakula’s Phase 1 and 2 concentrators of
approximately 95%; (xi) statements that the Phase 4 concentrator will be positioned adjacent to
the Phase 3 concentrator, with a minimum processing capacity of 5 Mtpa, and will share
common infrastructure with Phase 3, including the front end (crushing and screening plant),
8
which will reduce capital costs; (xii) statements that an updated life-of-mine integrated
development plan for the Kamoa-Kakula Copper Complex, including the Phase 3 expansion,
smelter and Project 95, as well as further optimization initiatives and the planned Phase 4
expansion is expected to be completed by the end of 2024; (xiii) statements that Ivanhoe will
conduct a 70,000-metre drill program at the majority-owned, 2,650-km2 Western Foreland
license package adjacent to Kamoa-Kakula; (xiv) statements that the current exploration
program on the Western Foreland license package will be followed by potential engineering and
planning work that would be designed to study opportunities to also accelerate copper
production growth from these licenses; (xv) statements that further exploration is planned on
Western Foreland regional targets deemed prospective for additional sediment-hosted, high-
grade copper deposits.
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
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, but not limited to, the factors discussed above and under the “Risk Factors” heading
in the company’s MD&A for the three months ended March 31, 2024, in the company’s current
annual information form, and elsewhere in this news release, 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 news 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 news 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
news release.