Ivanhoe Mines reports Q1 2023 production of 93,603 tonnes of copper from Kamoa-Kakula Copper Complex
April 5, 2023
Ivanhoe Mines reports Q1 2023 production of 93,603 tonnes
of copper from Kamoa-Kakula Copper Complex
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Kamoa-Kakula produced record 34,915 tonnes of copper in
March
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Kamoa-Kakula reported weekly production record of 9,016
tonnes of copper and daily production record of 1,563 tonnes
of copper in March
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Phase 1 and 2 concentrators reached new daily average
milling record of over 29,000 tonnes
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Kamoa-Kakula achieved record average copper recoveries
exceeding 88% in March
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Kamoa-Kakula milled approximately 1.93 million tonnes of
ore during the quarter at average grade of 5.4% copper
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Ivanhoe Mines to issue sixth annual Sustainability Report
on April 13, highlighting the company’s commitment to
mining with a greater purpose
KOLWEZI, DEMOCRATIC REPUBLIC OF CONGO – Ivanhoe Mines (TSX: IVN;
OTCQX: IVPAF) Executive Co-Chair Robert Friedland and President Marna Cloete
are pleased to announce that the Kamoa-Kakula Copper Complex in the
Democratic Republic of Congo (DRC) produced 93,603 tonnes of copper in
concentrate during the first quarter of 2023.
The Phase 1 and 2 concentrators are now regularly operating at the increased
processing rate of 9.2 million tonnes per annum (Mtpa), following the completion
of the debottlenecking program. The $50-million Phase 1 and 2 concentrator
debottlenecking program was completed on-budget and ahead of schedule in late
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February, increasing production capacity up to 450,000 tonnes of copper in
concentrate per annum.
Following the completion of the debottlenecking, Kamoa-Kakula’s Phase 1 and 2
concentrators had a record-breaking March. A production record of 34,915 tonnes
of copper in concentrate was achieved during the month, in addition to a weekly
production record of 9,016 tonnes in mid-March, and a daily production record of
1,563 tonnes on March 25. These records were achieved following two scheduled
plant shutdowns during the first quarter to tie in the new debottlenecking
equipment.
Kamoa-Kakula's Phase 1 and 2 concentrators milled approximately 1.93 million
tonnes of ore during the first quarter at an average feed grade of 5.4% copper.
This included approximately 255,000 tonnes of ore from the surface stockpiles.
The Phase 1 and Phase 2 concentrators also substantially outperformed design
specifications in terms of copper recovery during the month, with copper
recoveries averaging 88.3% and periodically achieving 90%, significantly above
Kamoa-Kakula’s nameplate 86% recovery rate.
The record monthly production in March was also achieved despite previously
reported instability within the DRC’s southern power grid. Ivanhoe Mines
maintains its 2023 annual production guidance for Kamoa-Kakula at between
390,000 to 430,000 tonnes of copper in concentrate.
Ivanhoe Mines’ Founder and Executive Co-Chairman, Robert Friedland
commented:
“The operating performance at Kamoa-Kakula continues to impress as the team
focuses on optimizing the concentrator plant following the successful completion
of the Phase 1 and Phase 2 debottlenecking program, once again ahead of
schedule and on budget, during the first quarter. We're particularly excited about
the improving trends in copper recovery, which saw the concentrator plants
operating at recoveries as high as 90% in March ... driving record production
numbers into the end of the month.
“With the Phase 3 expansion well on track for 2024, Kamoa-Kakula represents a
truly rare, high-margin growth story across the copper industry. Kamoa-Kakula is
one of the world's largest, highest-grade copper complexes, and a major
economic engine that generates leading returns on capital and exceptional free
cash flow. As the rainy season in the Democratic Republic of Congo ends our
geological team will also be ramping up exploration activities on Ivanhoe’s 90-
100%-owned Western Foreland Exploration Project next door, where we expect to
drill around 75,000 metres this year. We’re looking forward to the many
successes to come with our partners and shareholders in 2023 and beyond.”
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All figures are on a 100% project basis and metal reported in concentrate is
before refining losses or deductions associated with smelter terms.
Kamoa-Kakula produced 93,603 tonnes of copper during the first
quarter of 2023, compared to 92,761 tonnes of copper in the fourth
quarter of 2022.
Ivanhoe Mines announced the ahead-of-schedule and on-budget completion of
Kamoa-Kakula's Phase 1 and Phase 2 debottlenecking program on February 27,
2023. The debottlenecking program increased the nameplate ore processing
capacity by 22% from 7.6 to 9.2 million tonnes of ore per annum, increasing
production capacity up to approximately 450,000 tonnes per annum of copper in
concentrate.
Following the subsequent ramp-up, several operational records were achieved
during March, including a record daily milling rate of 29,003 dry metric tonnes on
March 18; a record daily production rate of 1,563 tonnes of copper on March 25; a
weekly production record of 9,016 tonnes of copper between March 24 and 30;
and a monthly production record of 34,915 tonnes of copper in concentrate.
Two scheduled plant shutdowns were completed during the first quarter to tie in
the new debottlenecking equipment. The shutdown of the Phase 1 concentrator
took place in late January 2023, and the shutdown of the Phase 2 concentrator
plant was completed in late February 2023. The new debottlenecking equipment
consists of new hydrocyclones, new scavenger-cleaner flotation cells, a new
concentrate thickener and a new Larox filter press, as well as upsized piping and
pumping capacity.
The Phase 1 concentrator started operating at its new, sustained nameplate
capacity of 580 dry tonnes per hour on January 25, 2023. On February 25, 2023,
within 12 hours of restarting, the Phase 2 concentrator also ramped up to its new,
sustained nameplate capacity of 580 dry tonnes per hour. Thereby, achieving the
targeted combined throughput of 9.2 million tonnes per annum. Subsequently,
both concentrators have been able to deliver, over limited periods, in excess of
600 dry tonnes per hour.
Kamoa-Kakula milled approximately 1.93 million tonnes of ore during the first
quarter at an average feed grade of 5.4% copper.
While the ongoing expansion of underground infrastructure at the Kakula Mine
takes place, ore continues to be drawn as required from surface stockpile to
maximize copper production.
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Kamoa-Kakula’s high- and medium-grade ore surface stockpiles totaled
approximately 4.2 million tonnes at an estimated grade of 3.9% copper as of the
end of March 2023. The operation mined 2.0 million tonnes of ore grading 5.2%
copper in Q1 2023, which was comprised of 1.8 million tonnes grading 5.6%
copper from the Kakula mine, including 0.8 million tonnes grading 6.7% copper
from the mine’s high-grade centre.
(L-R) Rachelle Museka, Mill Operator; Linda Malumda, Senior Larox Filter
Operator and Fancy Katuma, Sand Filter Operator standing in front the
debottlenecked Phase 2 concentrator. The additional Larox filter capacity,
as part of the debottlenecking program, increases Kamoa-Kakula’s
production capacity up to 450,000 tonnes per annum.
Copper recoveries from the Phase 1 and Phase 2 concentrators also improved
during the quarter. The average recovery rate for the quarter was approximately
87%; however, concentrator recoveries in late March averaged 88.3% and
periodically reached 90%, well above Kamoa-Kakula’s 86% design rate. The
Kamoa Copper process engineering team, together with several internationally-
recognized external metallurgy specialists, continue to investigate the feasibility
of new technologies to further increase overall processing recoveries.
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The recently commissioned concentrate thickener that was constructed as
part of the debottlenecking program, was completed ahead-of-schedule
and on-budget in late February. Kamoa-Kakula’s Phase 1 and 2
concentrators set a monthly production record of 34,915 tonnes of copper
in concentrate during March 2023.
Kamoa-Kakula is working closely with the DRC’s state-owned power utility, La
Société Nationale d’Electricité (SNEL) in identifying potential improvements to the
regional grid infrastructure. Kamoa-Kakula is also assisting with the delivery of
these improvements.
In addition, Kamoa Copper is independently installing sufficient redundancy to
isolate Kamoa-Kakula’s Phases 1, 2 and 3 operations from any potential future
power intermittencies. In the near term, a phased increase of on-site, installed
backup generation capacity is planned, from 32 megawatts (MW) to 132 MW. An
additional 11 MW is expected to be commissioned in the second quarter, with a
further 73 MW to be installed towards the end of 2023. Concurrently, discussions
are advancing to secure additional power via the Zambian interconnector. Longer
term, the total power redundancy capacity is expected to be up to 200MW.
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Surface earthworks for Phase 3 concentrator plant and associated
infrastructure well advanced, with first flotation cells delivered in
March
Kamoa-Kakula's Phase 3 expansion will consist of two new underground mines
known as Kamoa 1 and Kamoa 2, located approximately 10 kilometres north of
the existing Kakula underground mine, and the Phase 1 and Phase 2
concentrators. A new, 5-million-tonne-per-annum concentrator is under
construction adjacent to the new Kamoa mines, which are also under
development.
The concrete foundations under construction for the Phase 3 concentrator
flotation cells. Construction of Phase 3 concentrator is advancing on
schedule.
First production from the Phase 3 concentrator is scheduled and expected by the
fourth quarter of 2024. Overall work on the Phase 3 concentrator was
approximately 24% complete as at the end of March.
In late March, Kamoa Copper took onsite delivery of the first of its Phase 3
flotation cells, manufactured by Metso Outotec of Espoo, Finland. Initial steel
deliveries have arrived in South Africa and are en route to the project site. In
addition, the cyclones and electrical motors have been shipped from their
respective manufacturers, while the first of the two ball mills, manufactured by
CITIC Heavy Industries, is now ready for shipment from China.
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The concrete foundations of the direct-to-blister furnace building, as part of
the 500,000 tonnes per annum direct-to-blister flash copper smelter. The
construction of the smelter is advancing on schedule.
3D rendering of the furnace and off-gas handling building (RHS), and acid
production facility (LHS). All smelter off-gas streams, including the acid
plant tail gas, will be treated through the de-sulphurisation plant. The plant
will produce 650,000 to 800,000 tonnes of high-strength sulphuric acid per
annum, which will be sold domestically within the DRC Copperbelt.
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Construction activities on the direct-to-blister flash copper smelter are advancing
on schedule and are approximately 36% complete. Earthworks are 100% complete
and civil works now well underway. The direct-to-blister and electric slag-
cleaning furnaces foundation construction is complete, with structural steel
installation having commenced in March. Foundation construction for the
smelting building, as well as the anode-refining furnace building are also
principally complete.
The smelter site is adjacent to Kamoa-Kakula’s Phase 1 and Phase 2 concentrator
plants and will be fed by a mix of copper concentrate produced from Phase 1, 2
and 3 concentrators.
3D rendering of the 100-hectare smelter project site. The smelter will be
constructed to meet the highest environmental and safety standards, as set
by the International Finance Corporation (IFC) Performance Standards and
the World Bank Group Environmental Health and Safety (EHS) Guidelines.
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