Ivanhoe Mines reports record quarterly production of 103,786 tonnes from Kamoa-Kakula Copper Complex for Q2 2023
July 5, 2023
Ivanhoe Mines reports record quarterly production of 103,786
tonnes from Kamoa-Kakula Copper Complex for Q2 2023
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Kamoa-Kakula achieves 11% quarter-on-quarter increase in
copper production
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Kamoa-Kakula milled a record 2.2 million tonnes of ore during the
quarter at an average grade of 5.2% copper
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Kamoa-Kakula sets a new weekly production record of 9,710
tonnes of copper
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New daily average milling record of approximately 30,000 tonnes
achieved in July
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Ball mill installation at Phase 3 concentrator has commenced;
construction well on track for Q4 2024 production
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Ivanhoe Mines to issue Q2 2023 financial results and
host conference call for investors on August 3
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 a record 103,786 tonnes of copper in concentrate during the second
quarter of 2023.
Kamoa-Kakula’s Phase 1 and 2 concentrators are now operating at an increased
throughput rate of 9.2 million tonnes per annum (Mtpa) following the ahead-of-schedule
completion of the debottlenecking program during the first quarter. The Phase 1 and 2
concentrators set a monthly production record of 35,856 tonnes of copper in
concentrate for May and produced 33,104 tonnes of copper during the shorter month of
June.
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Kamoa-Kakula's Phase 1 and 2 concentrators milled approximately 2.2 million tonnes of
ore during the second quarter at an average feed grade of 5.2% copper. This included
high-grade, run-of-mine ore from the Kakula Mine, supplemented with ore from the
surface stockpiles to achieve throughput in excess of original design capacity. Strong
copper recoveries continued for the quarter averaging 87.2%.
The second quarter brings Kamoa-Kakula’s year-to-date production to 197,389 tonnes
of copper in concentrate, which includes the ramp-up of the debottlenecking initiatives
since February 2023. The 2023 annual production guidance for Kamoa-Kakula is
maintained at between 390,000 to 430,000 tonnes of copper in concentrate.
Watch a July 2023 video featuring production and development highlights
at Kamoa-Kakula: https://vimeo.com/842255861/f0c4323d4c
The record quarterly production at Kamoa-Kakula was achieved despite maintenance
shutdowns in June and intermittent grid instability.
Since late Q4 2022, Kamoa Copper has been working alongside DRC’s state-owned
power company, La Société Nationale d’Electricité (SNEL), to identify the causes of
instability across the southern DRC’s grid infrastructure to assist with delivering long-
lasting solutions. Kamoa Copper has identified a series of upgrades and has outlined a
project plan to deliver the improvements. Mobilization of resources is underway, with
vendor selection and equipment procurement having commenced.
Concurrently, Kamoa Copper’s engineering team are working towards insulating
Kamoa-Kakula from future instability by expanding on-site backup generation capacity,
as well as sourcing additional power imported from the Zambian grid.
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Over the next 12-18 months, on-site backup-power generation capacity will increase via
a phased roll-out. During the second quarter, 11 megawatts (MW) of new generator
capacity was installed, bringing the total on-site backup-power generation capacity to
approximately 48 MW. Delivery of a further 32 MW in backup generation capacity,
sufficient to power Kamoa-Kakula’s entire Phase 1 and 2 operations in the event of grid
disruptions, will commence later this year. Over 100 MW of further backup generation
capacity has been ordered and is expected to be installed in 2024, in time for the
completion of the Phase 3 concentrator and smelter that are currently under
construction.
Discussions are advancing to secure up to 100 MW of additional power via the Zambian
grid interconnector, the initial phase of which is expected to be ready in the third
quarter.
All figures are on a 100% project basis and metal reported in concentrate is before
refining losses or deductions associated with smelter terms.
Ivanhoe Mines’ Founder and Executive Co-Chairman, Robert Friedland commented:
"Kamoa-Kakula, the rising star of the copper mining industry, continues to break
production and milling records ... further cementing the Democratic Republic of
Congo's position as an essential long-term contributor to the global copper supply
chain. The project's impressive track record of timely and cost-effective development
carries on with the Phase 3 expansion, including the construction of Africa's largest
direct-to-blister flash smelter, which is well on schedule for first production in the fourth
quarter of 2024.
"We are witnessing the rapid rise of the world's next major copper mining complex ...
discovered by the talented team at Ivanhoe Mines and developed alongside our joint-
venture partners Zijin Mining, and in partnership with the Democratic Republic of Congo
and its people. Kamoa-Kakula is set to become the fourth-largest copper producer in
the world and the biggest copper mine in Africa, with an annual production of
approximately 650,000 tonnes at industry-leading cash costs. It is a force to be
reckoned with in terms of economic prosperity, consistently providing strong returns
on investment and generating exceptional free cash flow in the near term. A new era
has begun for the Central African Copperbelt, which will be a vital source of essential
metals for future generations."
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Kamoa-Kakula’s Phase 1 and 2 concentrator plants set a quarterly production
record of 103,786 tonnes of copper in concentrate for Q2 2023 following the early
completion of the debottlenecking program in the first quarter.
Members of Kamoa-Kakula’s Emergency Response Team (ERT) at Kakula North.
The Phase 3 expansion projects continue their industry-leading safety record
with 784 lost time injury (LTI) free days and 25,786,440 LTI free hours worked.
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Kamoa-Kakula reports record quarterly production of 103,786 tonnes of
copper during the second quarter of 2023, compared with 93,603 tonnes of
copper in the first quarter.
Ivanhoe Mines announced the completion of Kamoa-Kakula's $50 million Phase 1 and
Phase 2 debottlenecking program ahead of schedule 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. For comparison,
Kamoa-Kakula produced 333,497 tonnes of copper in concentrate in 2022.
Following the completion of the debottlenecking, the Kamoa-Kakula Phase 1 and Phase
2 concentrators continued to perform strongly in the second quarter, breaking several
records including the quarterly production of 103,786 tonnes of copper in concentrate, a
quarter-on-quarter increase of 11%. Also during the quarter, a weekly production record
of 9,710 tonnes of copper in concentrate was achieved in late April. Shortly after quarter
end, on July 2, 2023, a record daily milling rate of 29,968 dry metric tonnes was
achieved, which is equivalent to an annual milling rate of 10.0 million tonnes per annum
(after accounting for availability).
Figure 1: A chart of Kamoa-Kakula’s quarterly copper production since first
production in May 2021. Record quarterly production was achieved in the second
quarter despite maintenance shutdowns and grid instability.
9,858
44,506
51,533 55,602
87,314
97,820
92,761 93,603
103,786
Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23
Quarterly Copper in Concentrate Produced (tonnes)
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Kamoa-Kakula milled a record 2.2 million tonnes of ore during the second quarter at an
average grade of 5.2% copper. While the ongoing expansion of underground
infrastructure at the Kakula Mine takes place, ore will be drawn as required from surface
stockpiles to maximize copper production.
Kamoa-Kakula’s high- and medium-grade ore surface stockpiles totaled approximately
4.1 million tonnes at an estimated grade of 3.71% copper as of the end of June 2023.
The operation mined 2.19 million tonnes of ore grading 5.13% copper in Q2 2023, which
was comprised of 2.00 million tonnes grading 5.39% copper from the Kakula mine,
including 0.68 million tonnes grading 6.97% copper from the mine’s high-grade centre.
Aerial view of the construction progress for the Phase 3, 5-million-tonne-per-
annum concentrator. The new concentrator will be fed by ore from the Kamoa 1
and Kamoa 2 underground mines, which are accessed by the new box cut visible
in the background (red arrow). The Phase 3 expansion is well on track for first
production in Q4 2024.
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Scaffold erection for the ball mill installation for Kamoa-Kakula's Phase 3
concentrator has commenced; overall project advancing on schedule at
52% complete
Kamoa-Kakula's Phase 3 expansion, consisting of two new underground mines known
as Kamoa 1 and Kamoa 2 and a new, 5-million-tonne-per-annum concentrator plant, is
well on track for first production in the fourth quarter of 2024. The expansion also
includes the integration of Africa's largest direct-to-blister flash smelter, which will have
a capacity of 500,000 tonnes of copper per annum and be constructed at Kakula,
adjacent to the existing Phase 1 and Phase 2 concentrator plants.
Associated power and surface infrastructure constructed for Phase 3 will be designed
to support future expansions of the Kamoa-Kakula Copper Complex. Underground
mining activities are expected to commence at Kamoa 1 in 2023 and Kamoa 2 in 2025.
Both new underground mines will use the same mechanized drift-and-fill mining
methods employed at the current Kakula mine. In addition, the Phase 3 concentrator will
use the same, upscaled process design as that used by the Phase 1 and 2
concentrators.
Civil construction on the Phase 3 ball mill foundations is now complete, with
scaffold erection for the installation of the first of the two ball mills underway.
Construction of the Phase 3 concentrator is now approximately 16% complete and the
overall project progress is 38% complete. Production is on schedule for the fourth
quarter of 2024.
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Detailed engineering design and procurement activities are mostly complete, with
fabrication activities now 61% advanced. The rate of equipment deliveries to site is
steadily increasing. A total of 137 of the forecasted 1,799 truck deliveries have already
taken place and a further 224 trucks ladened with equipment are currently en route to
site.
Civil works are nearing completion, with over 25,000 cubic metres of the total 30,000
cubic metres of concrete poured to date. The steel, mechanical, piping and plate work
(SMPP) contract was also awarded during the quarter. Delivery of structural steel
commenced during the quarter. Over 4,000 tonnes of the required 7,250 tonnes of
structural steel have been shipped to site. Orders for approximately 50,000 metres of
the total 73,000 metres of piping have also been placed.
The last lot of the 1,830-tonne primary and secondary ball mill equipment package has
been shipped by CITIC Heavy Industries of Henan province, China and is expected to
arrive at the Port of Durban, South Africa, imminently. Installation of the first of the two
ball mills has commenced at the Phase 3 concentrator site, with scaffolding work well
progressed. The first lots of the cone crushers, flotation cells, vibrating screens,
concentrate filters, cyclone cluster, compressor and pump mechanical equipment
packages are expected to be delivered to site imminently. Furthermore, the apron feeder
was recently lifted into position inside the Phase 3 run-of-mine stockpile tunnel.
Kamoa-Kakula Phase 3 concentrator surface crew lift a 28-tonne apron feeder
into position on a trolley frame.