Kamoa Copper to expand processing capacity of Kamoa- Kakula’s Phase 1 and Phase 2 concentrators by 21%, to a combined total of 9.2 million tonnes of ore per year
February 22, 2022
Kamoa Copper to expand processing capacity of Kamoa-
Kakula’s Phase 1 and Phase 2 concentrators by 21%, to a
combined total of 9.2 million tonnes of ore per year
■
Copper production from the first Kamoa Copper’s two phases
projected to exceed 450,000 tonnes per year by Q2 2023,
positioning Kamoa Copper as the world’s fourth largest copper
producer
■
Construction of Kamoa-Kakula’s Phase 2 concentrator almost
complete and early-stage commissioning activities underway;
first concentrate production expected in April 2022
■
Engineering and early works for the Phase 3 expansion
progressing quickly, with a third, significantly larger
concentrator expected to commissioned in Q4 2024
KOLWEZI, DEMOCRATIC REPUBLIC OF CONGO – Ivanhoe Mines (TSX: IVN;
OTCQX: IVPAF) Co-Chairs Robert Friedland and Yufeng “Miles” Sun announced
that Kamoa Copper has approved a de-bottlenecking plan for Kamoa-Kakula to
increase the combined design processing capacity of the Phase 1 and Phase 2
concentrator plants by approximately 21%, to 9.2 million tonnes of ore per year
(Mtpa), up from 7.6 Mtpa, once steady-state production is achieved at both
concentrators.
The de-bottlenecking initiative is expected to increase Kamoa-Kakula’s Phase 1
and Phase 2 annual copper output to more than 450,000 tonnes by Q2 2023 ─
positioning Kamoa-Kakula as the world’s fourth largest copper producer.
Mark Farren, Kamoa Copper’s CEO, said: “Kamoa-Kakula is blessed with an
incredible endowment of high-grade copper resources. Given that our
underground mine development and ore production are both progressing well
ahead of schedule, the plant expansion will allow the operations team to process
significantly more high-grade copper ore directly from the Kakula Mine in the
years ahead.
2
“Our orebody has a huge advantage in allowing us to adapt our mining cut-off to
mine larger tonnages very efficiently, while maintaining grades above a desired
level. The expansion also provides the team with the flexibility to utilize our
surface stockpiles, for which the mining is already paid for, that totalled more
than 4.4 million tonnes grading 4.61% copper at the end of January.”
Construction of Kamoa-Kakula’s Phase 2, 3.8-Mtpa concentrator plant almost is
complete with early-stage commissioning activities now underway. Hot
commissioning of the concentrator with first ore and initial copper concentrate
production are both on track for April 2022.
Engineering and early works for the Phase 3 expansion, including a new box cut
and twin declines to access new mining areas, is progressing quickly. A third,
significantly larger concentrator is being designed and is expected to
commissioned in Q4 2024. An updated pre-feasibility study, including the Phase 3
expansion, is expected in Q3 2022. Also underway are early works on a direct-to-
blister flash smelter at Kamoa-Kakula that will incorporate leading-edge
technology supplied by Metso Outotec of Finland, and have a nameplate capacity
of 500,000 tonnes a year of approximately 99%-pure blister copper.
The Phase 1 concentrator currently is running at a throughput that is in excess of
its 3.8-Mtpa design capacity by more than 22%, with 112% of design throughput
achieved in January. Copper recoveries of above 87% also are consistently being
achieved that are in excess of design recovery of 85.6%, depending on feed
grade, with January’s recoveries approximately 2.7% higher.
Despite the Phase 1 concentrator incurring significant downtime for critical tie ins
and changes required for the commissioning of the Phase 2 concentrator, the
copper in concentrate produced in January totalled 18,824 tonnes ─ almost the
same as December’s record production of 18,853 tonnes. January’s impressive
operating performance of the Phase 1 concentrator is continuing in February. On
February 7th, the concentrator set a new daily ore throughput record with 13,498
tonnes milled.
3
Figure 1: Kamoa-Kakula’s base-case, pro-forma copper production
(after de-bottlenecking is complete) relative to the world’s projected
top 10 producing mines in 2022 by paid copper production.
Source: Company filings, Wood Mackenzie (February 2022). Note: Kamoa-Kakula production of 435 kt
paid copper production, or 450 kt copper in concentrate, is based on expected Phase 1 and 2 steady
state production, following de-bottlenecking of both Phase 1 and 2 concentrators.
Steve Amos, Ivanhoe Mines’ Head of Projects, DRC, commented: “After
successfully operating the Phase 1 concentrator for more than eight months,
we’ve identified a number of relatively minor modifications to the concentrator
that should increase ore throughput from the current design of 475 tonnes per
hour to 580 tonnes per hour. These modifications include increasing the diameter
of a number of pipes, replacing a number of motors and pumps with larger ones
and installing additional flotation, concentrate-thickening, concentrate-filtration
and tailings-disposal capacity.
“We expect the de-bottlenecking project to cost approximately US$50 million and
take approximately 12 months to complete. These modifications will allow the
team to consistently operate the concentrator plant at the increased throughput
without compromising plant availability, copper recovery or copper concentrate
grade. Engineering design is under way and procurement of long-lead items
already has started. We expect to be in a position to increase Kamoa-Kakula’s
combined processing capacity to 9.2 million tonnes of ore a year by Q2 2023.”
As announced earlier this year, the 2022 production guidance for the Kamoa-
Kakula Copper Complex is between 290,000 to 340,000 tonnes of copper in
-
200
400
600
800
1,000
Paid Copper Production (kt)
4
concentrate. The figures are on a 100%-project basis and copper reported in
concentrate is prior to refining losses or deductions associated with smelter
terms.
The Kamoa-Kakula Mining Complex, with the Phase 1 and Phase 2
concentrator plants circled in red.
Another view of the Kamoa-Kakula Mining Complex, with the Kakula North
ore stockpiles in front and the Phase 1 and Phase 2 concentrators in the
rear.
5
Commissioning team observing the delivery of first ore to Kamoa-Kakula’s
Phase 2 high-pressure-grinding-rolls (HPGR) stockpile on February 18th.
Assembly of Kamoa-Kakula’s Phase 2 flotation cells now is complete and
early-stage commissioning activities are underway.
6
Mill operator Rachel Museka, collecting pulp-density samples at Kamoa-
Kakula’s Phase 1 concentrator.
Gracia Mbaka Indundu, Senior Operator, at the first two concentrate filter
presses, which were supplied by Metso Outotec of Espoo, Finland.
7
Priscille Mandandj, Rachel Museka, Esther Kabiz and Flora Kaj Somp,
celebrating the completion of construction of the Phase 2 ball mills.
Excavating crew at Kamoa-Kakula’s new box cut for the twin declines that
will provide access to the Phase 3 mining areas. (L-R) Katshaba Gracien,
Milto Bikos, Nkulu Mwepu, Maseo Kabey, Mandew Jean, and Mutomb
Jasue.
8
Excavation work is advancing quickly at Kamoa-Kakula’s new box cut for
the twin declines that will provide access to the Phase 3 mining areas.
About the Kamoa-Kakula Copper Complex
Kamoa-Kakula is the world’s fastest growing major copper mine. Kamoa-Kakula
began operations in May 2021 and produced approximately 106,000 tonnes of
copper in concentrate in 2021. Kamoa-Kakula’s 2022 production guidance is
between 290,000 to 340,000 tonnes of copper in concentrate.
Based on independent benchmarking, the project’s phased expansion scenario to
19 Mtpa would position Kamoa-Kakula as the world’s second-largest copper
mining complex, with peak annual copper production of more than 800,000
tonnes.
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
Government of the Democratic Republic of Congo (20%). A 2020 independent
audit of Kamoa-Kakula's greenhouse gas intensity metrics performed by Hatch
Ltd. of Mississauga, Canada, confirmed that the project will be among the world's
lowest greenhouse gas emitters per unit of copper produced.