Ivanhoe Mines reports record quarterly production of 103,947 tonnes from Kamoa-Kakula Copper Complex for Q3 2023
October 4, 2023
Ivanhoe Mines reports record quarterly production of 103,947
tonnes from Kamoa-Kakula Copper Complex for Q3 2023
■
Kamoa-Kakula milled 2.24 million tonnes of ore during the quarter
at an average grade of 5.55% copper
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Kamoa-Kakula has produced 301,336 tonnes copper year-to-date,
well on track to achieve 2023 guidance
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Phase 3 concentrator, smelter and hydropower project on
schedule for Q4 2024 start
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Kamoa 1 and Kansoko underground access tunnels successfully
connected for Phase 3 mining
■
Ivanhoe Mines to issue Q3 2023 financial results and host
conference call for investors on November 6
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Ivanhoe Mines launches redesigned corporate brand and website
after market
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 103,947 tonnes of copper in concentrate during the third
quarter of 2023.
Kamoa-Kakula’s Phase 1 and 2 concentrators have consistently operated at a steady-
state throughput rate of 9.2 million tonnes per annum (Mtpa) following the ahead-of-
schedule completion of the debottlenecking program during the first quarter, and have
regularly surpassed this throughput rate during the second and third quarter. The
Phase 1 and 2 concentrators produced 35,267 tonnes of copper in concentrate for
August and produced 33,044 tonnes of copper during the shorter month of September.
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Kamoa-Kakula's Phase 1 and 2 concentrators milled approximately 2.24 million tonnes
of ore during the third quarter at an average feed grade of 5.55% 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 third quarter brings Kamoa-Kakula’s year-to-date production to 301,336 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.
All figures are on a 100% project basis and metal reported in concentrate is before
refining losses or deductions associated with smelter terms.
Watch a September 2023 Kamoa-Kakula highlight video:
https://vimeo.com/870791610/edd38b6db1?share=copy
Team members and contractors celebrate the lifting of the ball mill shells for
Kamoa-Kakula's Phase 3 concentrator plant expansion, which will boost annual
throughput to approximately 14.2 Mtpa by Q4 2024.
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Ivanhoe Mines Founder and Executive Co-Chair Robert Friedland commented:
"Kamoa-Kakula continues to set records and outperform our expectations, with
continued strong performance in terms of throughput, grade and recovery at the Phase
1 and Phase 2 plants. This has all been achieved despite ongoing challenges presented
by electrical grid instability, where we now have a plan in place with the Congolese
national utility to materially improve reliability across the network for all users over the
next year. Meanwhile, the successful connection of the Kamoa 1 and Kansoko
underground declines marks a major milestone for the Phase 3 expansion. This
achievement demonstrates our commitment to operational excellence and is a
testament to our strong partnership with Zijin Mining and the DRC Government.
Construction remains on budget and schedule for commissioning by the fourth quarter
of 2024, further solidifying our track record of success.
“Ivanhoe Mines is on the cusp of a major turning point in the company's journey, with
the conclusion of the Phase 3 expansion expected to mark the commencement of major
cash flow and profit for the company. This is an extremely exciting time for Ivanhoe’s
stakeholders and shareholders as we move forward with our vision of building the
world’s next major, diversified mining company. We would like to again commend
Kamoa Copper’s team for continuing to deliver industry-leading results across the
operation.”
Kamoa-Kakula reports record quarterly production of 103,947 tonnes of
copper during the third quarter of 2023
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 third quarter, including the
quarterly production of 103,947 tonnes of copper in concentrate. 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 million tonnes per annum (after accounting for
availability).
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Figure 1: A chart of Kamoa-Kakula’s quarterly copper in concentrate production
since first production in May 2021. Record quarterly production was achieved in
the third quarter despite maintenance shutdowns and grid instability.
Kamoa-Kakula milled 2.24 million tonnes of ore during the third quarter at an average
grade of 5.55% copper. While the ongoing expansion of underground infrastructure at
the Kakula Mine continues, ore is 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 3.55% copper as of the end of September
2023. The operation mined 2.18 million tonnes of ore grading 5.31% copper in Q3 2023,
which was comprised of 2.00 million tonnes grading 5.57% copper from the Kakula
mine, including 1.00 million tonnes grading 7.10% copper from the mine’s high-grade
centre.
The quarterly production record at Kamoa-Kakula was achieved despite continued
intermittent grid instability.
Since 2023, 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 and to assist with delivering long-lasting
solutions. Kamoa Copper has identified a series of upgrades and has agreed on a
project plan with SNEL to deliver the improvements. Mobilization of resources is
ongoing, with vendor selection and equipment procurement having commenced.
44,506
51,533 55,602
87,314
97,820
92,761 93,603
103,786 103,947
Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23
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In addition, Kamoa Copper’s engineering team are currently expanding the on-site
backup generation capacity to ensure there is full on-site redundancy for the current
Phase 1 and 2 operations, as well as future Phase 3 operations. On-site backup-power
generation capacity is set to increase, via a phased roll-out, from the current 48 MW to a
total of over 200 MW in time for the completion of the Phase 3 expansion in Q4 2024.
Concurrently, negotiations to source up to, initially, an additional 30 MW of power from
the Zambian grid interconnector are nearing completion.
Kamoa Copper's Maximin Kazadi (L), miner, and Mays Tshala Kayombu (R),
Scooptram (LHD) operator, underground at the new Kamoa 1 mine, which will
provide initial ore for the Phase 3 concentrator plant.
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Kamoa-Kakula's geological team gathers at camp following a day in the field. Our
geologists have developed an extensive database of the geology of Kamoa-
Kakula, as well as the expansive regional potential of the DRC Copperbelt.
Ball mill components for Kamoa-Kakula’s Phase 3 concentrator delivered
to site; concentrator execution is now 56% complete and well on track for
commissioning in Q4 2024
Kamoa-Kakula's Phase 3 expansion, consisting of two new underground mines known
as Kamoa 1 and Kamoa 2 and a new, 5-Mtpa 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 will be constructed on-site at Kakula, adjacent to the
existing Phase 1 and Phase 2 concentrator plants.
Associated power and surface infrastructure constructed for Phase 3 expansion will be
designed to support future expansions of the Kamoa-Kakula Copper Complex.
Underground mining activities are expected to commence at Kamoa 1 in late 2023 and
Kamoa 2 in 2025. Both new underground mines will use the same mechanized 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.
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Installation of the first of the two ball mills has commenced at the Phase 3
concentrator site, which is on track for commissioning in Q4 2024.
Overall project progress of the Phase 3 concentrator is now approximately 56%
complete. Production is well on schedule for the fourth quarter of 2024.
Detailed engineering design and procurement activities are essentially complete, with
fabrication activities well advanced. The rate of equipment deliveries to site is steadily
increasing. A total of 1,484 of the forecasted 1,950 truck deliveries have already arrived
on site.
Civil works are now effectively complete, with nearly 30,000 cubic metres of concrete
poured to date. The steel, mechanical, piping and plate work (SMPP) contract was
awarded during the second quarter, and delivery of structural steel commenced. Over
6,300 tonnes of the required 7,400 tonnes of structural steel and plate work have been
shipped to site.
The last lot of the 1,830-tonne primary and secondary ball mill equipment package from
CITIC Heavy Industries of Henan province, China, has arrived at site except for the
secondary mill feed chute, which is expected in the fourth quarter.
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Installation of the flotation cells at Kamoa-Kakula’s Phase 3 concentrator is
progressing well and advancing on schedule.
Installation of the first of the two ball mills has commenced at the Phase 3 concentrator
site, with flotation cell installation also underway. The first lots of cone crushers,
flotation cells, vibrating screens, concentrate filters, cyclone cluster, compressor and
pump mechanical equipment packages are now on site or expected to be delivered to
site imminently.
The main access tunnels (drives) between the Kamoa 1 and Kansoko declines for the
Phase 3 development now are connected (holed) in the centre of the deposit, a major
achievement and milestone for the project team and the underground mining crews as it
opens the mine’s footprint for ventilation and marks entry into higher-grade ore from
both sides of the deposit.