Ivanhoe Mines reports significantly increased hydroelectric power availability for Kamoa-Kakula
April 7, 2025
Ivanhoe Mines reports significantly increased hydroelectric
power availability for Kamoa-Kakula
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Improved operational performance at Kamoa-Kakula increased
copper production to record levels since
mid-March, 2025
■
Kamoa-Kakula produced near-record 133,120 tonnes of copper
during first quarter, with accelerating quarterly production
anticipated
■
20 megawatts of additional imported hydroelectric power
secured, further 30 megawatts expected imminently; up to 50
megawatts of Inga II Turbine #5 hydroelectric power expected
from Q4 2025
■
Given sufficient hydroelectric power, start-up of Kamoa-
Kakula’s direct-to-blister smelter to commence next month,
with 99.7% copper anode production from July 2025
■
Ivanhoe Mines to issue Q1 2025 financial results after market
on April 30, host conference call for investors
on May 1, 2025
JOHANNESBURG, SOUTH AFRICA – Ivanhoe Mines’ (TSX: IVN; OTCQX: IVPAF)
Executive Co-Chair Robert Friedland and President & Chief Executive Officer
Marna Cloete announced today, alongside the company’s first-quarter production
results, that Kamoa-Kakula has reached a major turning point following a
significant increase in imported hydroelectric power in recent weeks enabling the
start-up of the new on-site copper smelter.
Imported hydroelectric power increased by 20 megawatts (MW) to 70 MW in mid-
March. Imported hydropower is expected to increase further to 100 MW
imminently, representing a 100% increase over recent weeks.
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Kamoa-Kakula delivered record production during the last two weeks of March at
an annualized rate above its 2025 guidance. The outperformance was also
underpinned by strong operating performance from the new Phase 3
concentrator, which delivered record throughput and copper production,
exceeding its nameplate design capacity.
Founder and Co-Chairman Robert Friedland commented:
“Despite recent volatility in global markets and with virtually all global equities
knocked down by panic … and computerized trading algorithms … Ivanhoe Mines
has a very strong balance sheet and generates powerful cash flows ... In addition,
we are in a privileged position with Kamoa-Kakula as one of the lowest-cost
copper producers in our industry… and we expect our operating costs to decline
even further as our state-of-the-art direct-to-blister smelter ramps up this year…
The production of 99.7% pure copper anodes will significantly reduce our C1
cash costs due to a more than 50% reduction in transportation costs per unit of
contained copper and the enjoyment of by-product sulphuric acid sales ... a
critical commodity in great demand in the Democratic Republic of the Congo’s
copper industry.
“We are delighted that Kamoa-Kakula’s growing pains, which led to power
challenges, are behind us following our successful efforts to secure additional
imported hydroelectricity … with more imported hydroelectric power from the
Southern Africa Power Pool on its way very soon. We now have in place a long-
term energy security program that future-proofs our energy mix as we continue to
grow into the very top ranks of the world’s largest copper production complexes.
“We are therefore sufficiently encouraged to inaugurate the startup of our state-
of-the-art Kamoa-Kakula smelter… one of the largest and most technologically
sophisticated smelters in the world. With the smelter coming online, we will no
longer simply be exporting copper concentrate — we will export the world’s
greenest copper anodes for the energy transition. As the world wakes up to a
generational copper deficit, we have the assets, the people, and the infrastructure
to deliver this responsibly sourced and most critical of all metals to world
markets.”
Watch a video highlighting Ivanhoe Mines’ 2025 first quarter
production results: https://vimeo.com/1072835122/ff0199b555
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Commissioning of Kamoa-Kakula’s state-of-the-art 500,000-tonne-per-
annum direct-to-blister copper smelter has started with the first production
of 99.7% pure copper anodes expected in July 2025.
Summary of quarterly production data from Kamoa-Kakula
Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025
Phase 1 & 2
Ore tonnes milled (000’s tonnes) 2,061 2,288 2,215 2,329 2,211
Feed grade of ore processed (% copper) 4.80% 5.04% 4.86% 5.08% 5.01%
Copper recovery (%) 87.4% 87.0% 86.6% 87.0% 88.3%
Copper in concentrate produced (tonnes) 86,117 99,706 94,214 102,042 97,575
Phase 3
Ore tonnes milled (000’s tonnes) - 93 1,050 1,326 1,512
Feed grade of ore processed (% copper) - 1.67% 2.64% 2.82% 2.76%
Copper recovery (%) - 83.3% 79.9% 85.1% 85.1%
Copper in concentrate produced (tonnes) - 1,106 22,099 31,777 35,545
Combined Phase 1, 2 and 3
Ore tonnes milled (000’s tonnes) 2,061 2,381 3,266 3,655 3,723
Feed grade of ore processed (% copper) 4.80% 4.91% 4.14% 4.26% 4.10%
Copper recovery (%) 87.4% 86.9% 85.3% 86.6% 87.4%
Copper in concentrate produced (tonnes) 86,117 100,812 116,313 133,819 133,120
Data in red denotes a quarterly record
Kamoa-Kakula produced a near-record 133,120 tonnes of copper
during first quarter, rising to a production rate of over 630,000 tonnes
of copper annualized over last two weeks of March
During the first quarter, the Phase 1, 2, and 3 concentrators milled a record 3.72
million tonnes of ore and achieved a daily milling record of 51,528 tonnes of ore
in late March. The outperformance was underpinned by initiatives implemented
earlier in the quarter that enabled the Phase 3 concentrator to be consistently fed
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at higher rates than originally designed. Phase 3 milled a record 1.51 million
tonnes of ore during the quarter. The record is equivalent to an annualized milling
rate of 6.1 million tonnes per annum, which is more than 20% higher than the
Phase 3 concentrator’s design capacity of 5.0 million tonnes per annum. The
Phase 1 and 2 concentrators also outperformed during the quarter, although
operations were hampered by maintenance shutdowns in the first half of March.
During March, Kamoa-Kakula’s Phase 1, 2, and 3 concentrators produced an
average of 1,509 tonnes of copper per day, which is equivalent to an annualized
production rate of 550,000 tonnes per annum. After maintenance on the Phase 1
and 2 concentrators was complete, copper production increased to a record
average of 1,732 tonnes per day over the last 14 days of March. The production
record is equivalent to an annualized production rate of over 630,000 tonnes per
annum, well in excess of the 2025 guidance. An outstanding daily production
record of 1,919 tonnes of copper was also achieved on March 28, 2025.
Kamoa-Kakula is maintaining its annual production guidance of 520,000 to
580,000 tonnes of copper.
Figure 1: Chart of the growth in monthly copper production over the past
12 months, from Kamoa-Kakula’s Phase 1 & 2, and Phase 3 concentrators,
with the total annualized copper production rate at the top of each bar
Increase in imported power since mid-March to 70 megawatts; a
further increase to 100 megawatts expected shortly
During March, total average power required for the Phase 1, 2, and 3 operations
was between 130 and 140 MW. At the beginning of the month, Kamoa-Kakula was
drawing 50 MW of domestically generated hydroelectric power, with 50 MW drawn
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from imported sources. The balance of required power was from on-site, diesel-
generated backup power, of which there is an installed capacity of up to 160 MW.
In March, an agreement was signed to increase total imported hydroelectric
power via the Zambian interconnector by 40% from 50 MW to 70 MW. The
additional power is sourced from Mozambique via the Southern Africa Power
Pool network. Kamoa-Kakula’s operations team expects a further increase in
imported power to 100 MW within the coming days. The increase in power has
provided Kamoa-Kakula’s management team with the confidence to finalize
commissioning and commence the start-up of the smelter. Power drawn by the
smelter is expected to gradually increase from 45 MW, following first concentrate
feed, up to 70 MW once at full capacity.
In addition, wet commissioning of Turbine #5 at Inga II, with a hydroelectric
generation capacity of 178 MW, is now expected to commence in the third
quarter. Kamoa-Kakula is expected to be allocated an initial, additional 50 MW of
hydroelectric power once commissioning is complete, increasing up to 178 MW
as the ongoing grid improvement initiatives are completed in 2026.
Smelter commissioning underway, with heat-up now expected to
commence in May; first copper anode production expected in July
Commissioning of Kamoa-Kakula’s 500,000-tonne-per-annum, direct-to-blister
copper smelter has started, with start-up expected to commence next month. The
initial heat-up process of the smelter is expected to take up to six weeks, after
which the first feed of concentrate will begin. Initial production of copper anode is
expected in July. Ramp up of the smelter is expected to be at approximately 80%
by year-end.
As previously announced, it is expected that between 20,000 to 30,000 tonnes of
copper in concentrate will be stockpiled in the on-site smelter concentrate
storage shed prior to starting up the smelter. At quarter-end, Kamoa-Kakula held
approximately 48,000 tonnes of unsold copper in inventory, up from 30,000
tonnes of unsold copper at the end of 2024. Approximately 20,000 tonnes of the
increase in unsold copper inventory over the past three months was newly stored
concentrate at the smelter ahead of its start-up. The majority of the remaining
unsold inventory is stored at the nearby Lualaba Copper Smelter (LCS) awaiting
toll treatment. Once fully ramped up, Kamoa-Kakula’s on-site copper smelter is
expected to hold approximately 17,000 tonnes of copper within its circuit.
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Kamoa-Kakula’s smelter off-gas conversion plant. Gas captured from
the smelting process will be converted into high-strength sulphuric
acid and sold to mining operations in the DRC Copperbelt.
The storage and blending of Kamoa-Kakula concentrate inside the
Concentrate Blending Facility has commenced, prior to first feed of the
concentrate into the smelter, which is expected in July.
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Aerial view of the smelter’s acid production plant. The state-of-the-art
smelter was designed to incorporate advanced technology supplied by
Metso Outotec of Espoo, Finland, and compliant with the International
Finance Corporation's (IFC) emissions standards.
Phase 3 concentrator feed grades primed to improve throughout
2025, as development at Kamoa 1 and Kamoa 2 underground mines is
completed
The majority of the ore processed by the Phase 3 concentrator continues to be
from underground development. The crews at the Kamoa and Kansoko
underground mines are focused on underground development, opening up
approximately 18 months of ore reserves prior to the commencement of primary
mining. Opening up a large accessible underground reserve base provides
operational flexibility for the underground mining crews, similar to that which has
already been achieved at the Kakula Mine.
The flat-lying nature of the Kamoa and Kakula orebodies means that underground
development can be carried out in ore, albeit at lower grades. Underground
development of the Kamoa mines is expected to continue until Q4 2025, after
which Phase 3 concentrator feed grades are expected to rise up to approximately
3% copper.
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Kamoa-Kakula’s Project 95 is 25% complete and advancing on
schedule
Civil works for Project 95 are advancing well, as shown in the foreground,
with the adjacent Phase 1 and 2 concentrator storage shed in the
background.
The “Project 95” initiative on Kamoa-Kakula’s Phase 1 and 2 concentrators is
expected to increase concentrator recoveries to 95%, from the design recovery
rate of 87%. The initiative, with a capital expenditure of approximately $180
million, is expected to increase annualized production by up to 30,000 tonnes of
copper, at an industry-leading capital intensity of $6,000 per tonne of copper.
Kamoa-Kakula’s Project 95 is advancing well at 25% complete and is on schedule
for completion in Q1 2026.
Power purchase agreement signed to build a 30 megawatts on-site
solar facility with battery storage at Kamoa-Kakula
Kamoa Copper has signed a power purchase agreement (PPA) with
CrossBoundary Energy of Nairobi, Kenya, to install a 220 MWp Solar Photovoltaic
(PV) system and a 123 MVA / 526 MWh battery energy storage system (BESS) to
provide a continuous 30 MW at the facility. The installation will result in a 30 MW
baseload of additional green power for Kamoa-Kakula’s operations.
CrossBoundary Energy will fund, own, and operate the plant, and Kamoa Copper
will be the sole offtaker of the electricity produced.