Kakula Copper Mine underground development now 4.7 kilometres ahead of schedule; more than 15.4 kilometres now complete Fifth consecutive monthly development record set in May, with 1,868 metres achieved Fabrication of ball mills and other key equipment for Kakula’s first
June 3, 2020
Kakula Copper Mine underground development now 4.7
kilometres ahead of schedule; more than 15.4 kilometres
now complete
Fifth consecutive monthly development record set in May,
with 1,868 metres achieved
Fabrication of ball mills and other key equipment for Kakula’s first
phase, 3.8-million-tonne-per-annum processing plant is nearing
completion and shipment to site has begun
Approximately 100 truck loads of equipment for Kakula’s
processing plant en route to site
Major development at Kakula currently in mining zones
grading more than 8% copper
KOLWEZI, DEMOCRATIC REPUBLIC OF CONGO – Ivanhoe Mines (TSX: IVN;
OTCQX:IVPAF) Co-Chairs Robert Friedland and Yufeng “Miles” Sun announced today that
underground development at the Kakula Copper Mine continues to advance ahead of
schedule with more than 15.4 kilometres now complete, which is 4.7 kilometres ahead of
plan. In May, the mining team set its fifth consecutive monthly development record of 1,868
metres of underground advancement – 535 metres ahead of plan for the month.
Major development at the Kakula Mine currently is primarily in ore with an average grade of
approximately 8% copper. This ore is being placed on a dedicated, high-grade surface
stockpile that now totals approximately 51,000 tonnes grading an estimated 5.86% copper.
An adjacent medium-grade stockpile contains approximately 306,000 tonnes grading an
estimated 3.06% copper. The high-grade stockpile is projected to significantly expand in
the coming months as the majority of Kakula’s underground development will be in mining
zones grading +5% copper.
Mr. Friedland and Mr. Sun also noted that the fabrication of structural steel and key
equipment for Kakula’s initial 3.8-million-tonne-per-annum processing plant is progressing
rapidly at manufacturing facilities in China, South Africa and Europe. Fabrication of the
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plant’s largest components – the ball mills – is nearing completion at CITIC Heavy
Industries’ factory in Luoyang, China, and shipping of major components is underway.
Approximately 100 truck loads of equipment for the processing plant are en route to the
Kakula Mine from the port of Durban, South Africa. The two ball mills – a primary and
secondary mill each measuring 9.75 metres (32 feet) long and 6.1 metres (20 feet) in diameter
that will be installed in series to achieve a grind of 80% passing 53 micrometres – are being
transported to Kamoa-Kakula in three separate shipments. One shipment is on the road
between Durban and Kamoa-Kakula; one shipment is on a cargo ship and expected to arrive
at Durban on June 18th; and the third shipment is scheduled to depart Shanghai, China on
June 18th.
Aerial view of the Kakula Mine showing the tonnes and grade of the pre-
production stockpiles. The main declines are in the center of the picture and the
processing plant in the upper right corner.
Underground development at the Kakula Mine proceeding extremely well
Development of the Kakula Mine, the first deposit to be placed into production on the 400-
square-kilometre Kamoa-Kakula mining licence, is well ahead of schedule. Mine access
drives 1 and 2 (interconnected, parallel tunnels that will provide access to ore zones)
continue to progress well towards the southern portion of the orebody.
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Development also is well advanced on the eastern perimeter drives and the room-and-
pillar mining area. Development from the southern portal has reached south access drives
1 and 2, with mining crews working to establish the connection of these drives with mine
access drives 1 and 2 from the north side of the orebody. Approximately 1,000 metres of
development is required before the northern and southern access drives are joined, which
is scheduled to occur in September 2020.
A second crew comprised of young Congolese miners was added to the Kakula mining
team in March bringing the total number of underground mining crews to nine. The mine
will continue to add additional crews over the next year to further accelerate development.
Underground mining also is occurring at the Kansoko Mine, located at the Kamoa deposit
approximately 10 kilometres north of the Kakula Mine. Kansoko is development ready and
currently is being used to train new crews of young Congolese miners.
Kakula’s main belt and sacrificial belts have been installed for the conveyor system that will
transport ore from underground to surface. Initial commissioning for the conveyor system is
scheduled to occur in the next two weeks, with final commissioning for the full system
(including the fire suppression system and all safety components) scheduled for mid-July.
Team members from DRC-based Kamoa Kakula Construction Company (KKCC),
at the head end of the high-capacity decline conveyor system that will transport
copper ore from the Kakula Mine’s underground workings to the surface
processing plant.
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The reaming of Ventilation Shaft 3 has been completed. A high-capacity, surface fan will
be moved from its current location at Ventilation Shaft 1 to Ventilation Shaft 3. Ventilation
Shaft 1 will then become downcast (drawing fresh air into the mine) and Ventilation Shaft 3
will be upcast. Reaming of Ventilation Shaft 4 is expected to commence this month and
should be completed by the end of July.
In parallel with the construction of Kamoa-Kakula’s phase 1 Kakula Mine, work is
progressing on the independent Kakula definitive feasibility study (DFS) and an updated
Integrated Development Plan for the entire Kamoa-Kakula mining complex, which is
expected to be issued in mid-2020. The Kakula DFS will provide an increased level of
accuracy for the project economics for the initial phase of mine development at Kakula.
The Integrated Development Plan will include details on the planned expansion phases for
the greater Kamoa-Kakula mining complex, incorporating updates for mineral resources,
production rates and economic analysis.
Kakula’s development team members hold samples of the gray-coloured, high-
grade chalcocite ore to the surface stockpiles. Chalocite – Kakula’s predominant
type of ore – is nearly 80% copper by weight.
(L-R) Adolphe Kasenga (Assistant Grade Officer), Lucquin Selemani (Assistant
Surveyor), Reagan Ngandu (Assistant Surveyor), Donat Kanimu (Assistant
Surveyor), Daniel Jila (Data Clerk), Thotho Ngoy (Assistant Grade Officer), Ismael
Kayembe (Mine Surveyor) and in the back, Narcisse Kalombo (Dozer operator).
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A 63-tonne Sandvik truck delivers another load of high-grade chalcocite ore to
the surface stockpiles. The high-grade stockpile is projected to significantly
expand in the coming months as the majority of Kakula’s underground
development will be in mining zones grading +5% copper.
Construction progress on the processing plant and other surface
infrastructure remains on track for initial production in Q3 2021
Manufacturing and delivery to site of all long lead items for Kakula’s 3.8 million-tonne-per-
annum (Mtpa) concentrator plant facility is well advanced with some items already having
been delivered. Plant earthworks is complete, and plant civil works are advancing rapidly.
SMPP (structural, mechanical, piping and platework) fabrication is progressing well with
some steel already on route to site, and mobilization of the erection crews have started.
The contract for the EC&I (Electrical, Control and Instrumentation) has been awarded.
The capital cost related to the construction of the mining infrastructure (underground and
surface), processing plant and surface infrastructure has been estimated to a basic
engineering level of accuracy and is being used as the control budget estimate for the
project.
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The current estimate of the project’s initial capital costs is approximately US$1.3 billion as
of January 1, 2019, which assumes commissioning of the first processing plant module in
Q3 2021.
Pictured below are a ball mill shell and the girth gear for the Kakula processing
plant that were recently completed at CITIC Heavy Industries’ factory in Luoyang,
China. Approximately 100 truck loads of equipment for the processing plant are
now en route to the minesite.
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Construction activities at the Mwadingusha hydro-electric power plant, where all six
turbines are being replaced, is progressing well, as is the associated 220-kilovolt (Kva)
infrastructure to supply the mine with clean hydro-power. The mine is scheduled to be
energized with permanent 220kV hydro-generated power by January 2021, well in time for
first copper production.
Other critical infrastructure that has recently been completed include: construction of a
permanent road between the mine site and the Kolwezi airport; and the construction of the
first phase of accommodations for 1,000 employees and contractors.
More than 3,500 employees and contractors are currently working on site, of which
approximately 90% are Congolese nationals. To date, there have been no recorded
COVID-19 cases in DRC’s Lualaba Province where Kamoa-Kakula is located. As a
result, on June 1st, Kamoa-Kakula moved from Level 4 to Level 3 of its COVID-19
response plan, allowing the project’s Congolese employees to return to commuting
from Kolwezi and neighbouring communities.
Kakula’s new ICU ward that was constructed to treat potential COVID-19 patients.
To date, there have been no cases of COVID-19 at Kamoa-Kakula or in the DRC’s
Lualaba Province, where Kamoa-Kakula is located.
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Kamoa-Kakula on track to produce the world’s “greenest copper”
Together with its joint-venture partners, Ivanhoe is committed to building modern, safe,
mechanized mines that will showcase responsible, “green” mine development.
Kamoa-Kakula is unique as it combines ultra-high copper grades in thick, shallow and
relatively flat-lying deposits – allowing for large-scale, highly-productive, mechanized
underground mining operations. The ultra-high copper grades and underground mines
mean that Kamoa-Kakula will have a small surface footprint and use a fraction of the
power, water and consumables – and produce far less tailings – than comparable large,
low-grade, open-pit porphyry copper mines currently in operation, or under development,
elsewhere in the world.
In addition, approximately 55% of the Kakula’s tailings will be mixed with cement and
pumped back underground to fill voids and help support the underground mine. The
remaining 45% of the tailings will be pumped to a tailings storage facility.
“We are committed to building the Kamoa-Kakula Project to industry-leading standards in
terms of resource efficiency, water and energy usage, and minimizing emissions,” said
Executive Co-Chairman Robert Friedland. “We are blessed with incredibly high-grade
deposits in areas that have an abundance of clean, sustainable hydro power potential ─
providing us with a distinct advantage in our goal to become the world’s ‘greenest’ miner.”
Clean, sustainable hydro-electric power for Kamoa-Kakula
Ivanhoe also is committed to powering its mines with clean, sustainable hydro-electricity.
Ongoing upgrading work at the Mwadingusha hydro-power plant in the DRC has
significantly progressed with major equipment being delivered to site. The progressive re-
commissioning of the turbines, fully refurbished and modernized with state-of-the-art
control and instrumentation, is underway and is expected to be completed in Q1 2021. The
refurbished plant is expected to deliver approximately 72 megawatts (MW) of power to the
national power grid.
The work at Mwadingusha is being conducted by engineering firm Stucky, of Lausanne,
Switzerland, under the direction of Ivanhoe Mines and Zijin Mining, in conjunction with the
DRC’s state-owned power company, La Société Nationale d’Electricité (SNEL).
“Clean, renewable hydropower is the best energy solution to support our development
priorities as we continue to look for ways to reduce our impact on the environment and
produce the copper our world requires,” added Mr. Friedland.
The Kamoa-Kakula Copper Project is a joint venture between Ivanhoe Mines (39.6%), Zijin
Mining Group (39.6%), Crystal River Global Limited (0.8%) and the DRC government
(20%).