Kamoa-Kakula begins exporting copper concentrate internationally as production ramps up
July 19, 2021
Kamoa-Kakula begins exporting copper concentrate
internationally as production ramps up
■
Kamoa Copper draws down US$300 million advance payment
facility available under the offtake agreements; all future Phase 1
operating costs and majority of Phase 2 capital expenditures
expected to be funded from copper sales and facilities in place
■
Daily shipments of copper concentrate to local smelter to
produce 99%-pure blister copper also continuing
KOLWEZI, DEMOCRATIC REPUBLIC OF CONGO – Ivanhoe Mines (TSX: IVN; OTCQX:
IVPAF) Co-Chairs Robert Friedland and Yufeng “Miles” Sun are pleased to announce
that Kamoa Copper SA – the operating company of the joint venture between Ivanhoe
Mines, Zijin Mining Group, Crystal River and the Government of the Democratic
Republic of Congo (DRC) – has begun exporting its copper concentrate internationally.
The first truckloads of copper concentrate destined for smelters outside of the DRC
departed from the mine site on Saturday, July 17th, marking a significant milestone in
the ongoing ramp-up of Kamoa-Kakula’s Phase 1, 3.8 million-tonne-per-annum (Mtpa)
concentrator plant.
Kamoa-Kakula’s copper concentrate for export is being transported in bags, with each
bag containing approximately two tonnes of concentrate. The bags are independently
weighed, sampled and sealed in the presence of representatives from the DRC's
Directorate General of Customs and Excise (DGDA), then loaded onto transport trucks.
Once loaded, the trucks are weighed, sealed and parked in a dedicated holding area at
Kamoa-Kakula awaiting inspection and export clearance from the DGDA. The customs
approval process typically takes approximately five days. Once export clearance is
received, the trucks may exit the DRC and proceed on their journey to the port of
Durban, South Africa.
Kamoa Copper began producing copper concentrate on May 25, 2021, and made its first
delivery of bulk concentrates to the nearby Lualaba Copper Smelter, outside of Kolwezi,
on June 1, 2021. Since then, deliveries of bulk concentrate from Kamoa-Kakula to the
Lualaba Copper Smelter have been occurring on a daily basis. The first truckloads of
Kamoa-Kakula’s blister copper ingots, containing approximately 99% copper, are
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scheduled to be exported from the Lualaba Copper Smelter to international markets this
week.
Kamoa Copper received all necessary authorizations from the DRC government to
export copper concentrate and blister copper on June 8, 2021. The mine is on track to
produce between 80,000 and 95,000 tonnes of contained copper in concentrate in 2021.
In June 2021, Kamoa Copper elected to draw the US$300 million advance payment
facility available under the offtake agreements. The Kamoa Holding joint venture had
cash and cash equivalents on hand of approximately US$288 million as at June 30,
2021. Going forward, all Phase 1 operating costs and the majority of Phase 2 capital
expenditures are expected to be funded from copper sales and facilities in place at
Kamoa. Ivanhoe’s proportionate funding of Kamoa-Kakula’s Phase 2 construction
capital costs for the remainder of 2021 is expected to be only US$85 million.
Marna Cloete, Ivanhoe Mines’ President and CFO, commented: “As Kamoa-Kakula’s
Phase 1 concentrator plant ramps up toward steady-state production, the mine now is
producing more concentrate than the nearby Lualaba Copper Smelter can process. As
such, Kamoa-Kakula has begun exporting its ultra-high-grade copper concentrates to
international smelters, converting the rich copper resources hidden beneath the
Kalahari sands into long-lasting and meaningful benefits for all Congolese people.”
Kakula is projected to be the world’s highest-grade major copper mine, with an initial
mining rate of 3.8 Mtpa, ramping up to 7.6 Mtpa in Q3 2022. Phase 1 is expected to
produce approximately 200,000 tonnes of copper per year, and phases 1 and 2
combined are forecast to produce approximately 400,000 tonnes of copper per year.
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.
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.
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%).
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Members of Kamoa Copper’s operations team celebrate the loading of the first
transport truck with bags of ultra-high-grade copper concentrates.
Trucks loaded with bags of copper concentrate at the Kamoa-Kakula mine site
awaiting customs clearance.
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Leonine Kashala Tshikuta (left) and Jean Nkulu Madua at Kamoa-Kakula’s
concentrate bagging plant.
The first bags of Kamoa-Kakula copper concentrate being loaded for export.
Each bag contains approximately two tonnes of concentrate.
5
Dean-Bernard Shilunda, Concentrator Logistics Manager, at the concentrate
bagging plant.
Bags of concentrate for export being loaded with the spreader-beam and crane.
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Loading bulk copper concentrate for delivery to the nearby Lualaba Copper
Smelter to produce blister copper ingots, containing approximately 99% copper.
Qualified Persons
Disclosures of a scientific or technical nature regarding development scenarios at the
Kamoa-Kakula Project in this news release have been reviewed and approved by Steve
Amos, who is considered, by virtue of his education, experience and professional
association, a Qualified Person under the terms of NI 43-101. Mr. Amos is not
considered independent under NI 43-101 as he is the Head of the Kamoa Project. Mr.
Amos has verified the technical data disclosed in this news release.
Ivanhoe has prepared an independent, NI 43-101-compliant technical report for the
Kamoa-Kakula Project, which is available on the company’s website and under the
company’s SEDAR profile at www.sedar.com:
Kamoa-Kakula Integrated Development Plan 2020 dated October 13, 2020,
prepared by OreWin Pty Ltd., China Nerin Engineering Co., Ltd., DRA Global,
Epoch Resources, Golder Associates Africa, KGHM Cuprum R&D Centre Ltd.,
Outotec Oyj, Paterson and Cooke, Stantec Consulting International LLC, SRK
Consulting Inc., and Wood plc.
The technical report includes relevant information regarding the assumptions,
parameters and methods of the mineral resource estimates on the Kamoa-Kakula
Project cited in this news release, as well as information regarding data verification,
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exploration procedures and other matters relevant to the scientific and technical
disclosure contained in this news release.
About Ivanhoe Mines
Ivanhoe Mines is a Canadian mining company focused on advancing its three principal
joint-venture projects in Southern Africa: the development of major new, mechanized,
underground mines at the Kamoa-Kakula copper discoveries in the DRC and at the
Platreef palladium-rhodium-platinum-nickel-copper-gold discovery in South Africa; and
the extensive redevelopment and upgrading of the historic Kipushi zinc-copper-
germanium-silver mine, also in the DRC.
Kamoa-Kakula began producing copper in May 2021 and, through phased expansions,
is positioned to become one of the world's largest copper producers. Kamoa-Kakula
and Kipushi will be powered by clean, renewable hydro-generated electricity and will be
among the world’s lowest greenhouse gas emitters per unit of metal produced. Ivanhoe
Mines has pledged to achieve net-zero operational greenhouse gas emissions (Scope 1
and 2) at the Kamoa-Kakula Copper Mine when large-scale electric, hydrogen and hybrid
underground mining equipment become commercially available. Ivanhoe also is
exploring for new copper discoveries on its Western Foreland exploration licences in
the DRC, near the Kamoa-Kakula Project.
Information contacts
Investors: Bill Trenaman +1.604.331.9834 / Media: Matthew Keevil +1.604.558.1034
Forward-looking statements to be updated
Certain statements in this release constitute “forward-looking statements” or “forward -looking
information” within the meaning of applicable securities laws. Such statements and information involve
known and unknown risks, uncertainties and other factors that may cause the actual results,
performance or achievements of the company, its projects, or industry results, to be materially different
from any future results, performance or achievements expressed or implied by such forward -looking
statements or information. Such statements can be id entified by the use of words such as “may”,
“would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”,
“forecast”, “predict” and other similar terminology, or state that certain actions, events or results “may”,
“could”, “would”, “might” or “will” be taken, occur or be achieved. These statements reflect the
company’s current expectations regarding future events, performance and results and speak only as of
the date of this release.
Such statements include without limitation, the timing and results of: (i) statements regarding the ultra-
high-grade, clean concentrate produced by Kamoa -Kakula is expected to contain approximately 57%
copper and very low levels of impurities ; (ii) statements regarding Ivanhoe’s guidance for contained
copper in concentrate expected to be produced by the Kamoa -Kakula Project for the balance of 2021 of
80,000 to 95,000 tonnes; (iii) statements regarding Kakula is projected to be the world’s highest -grade
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major copper mine, with an initial mining rate of 3.8 Mtpa, ram ping up to 7.6 Mtpa in Q3 2022; (iv)
statements regarding Kamoa-Kakula’s Phase 1 is expected to produce approximately 200,000 tonnes
of copper per year, and phases 1 and 2 combined are forecast to produce approximately 400,000
tonnes of copper per year; (v) statements regarding that, b ased 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 ; (vi)
statements regarding that based on a 2020 independent audit of Kamoa -Kakula's greenhouse gas
intensity metrics performed by Hatch Ltd., the Kamoa-Kakula Project will be among the world's l owest
greenhouse gas emitters per unit of copper produced ; (vii) statements regarding Kamoa-Kakula and
Kipushi will be powered by clean, renewable hydro -generated electricity and will be among the world’s
lowest greenhouse gas emitters per unit of metal pr oduced; (viii) statements regarding t he first
truckloads of Kamoa-Kakula’s blister copper ingots are expected to be exported from the Lualaba
Copper Smelter this week; and (ix) statements regarding going forward, all Phase 1 operating costs
and the majority of Phase 2 capital expenditures are expected to be funded from copper sales and
facilities in place at Kamoa. Ivanhoe’s proportionate funding of Kamoa -Kakula’s Phase 2 construction
capital costs for the remainder of 2021 is expected to be only US$85 mill ion.
As well, all of the results of the Kakula definitive feasibility study, the Kakula -Kansoko pre-feasibility
study and the Kamoa-Kakula preliminary economic assessment, constitute forward-looking statements
or information, and include future estimates of internal rates of return, net present value, future
production, estimates of cash cost, proposed mining plans and methods, mine life estimates, cash flow
forecasts, metal recoveries, estimates of capital and operating costs and the size and timing of ph ased
development of the projects. Furthermore, with respect to this specific forward -looking information
concerning the development of the Kamoa-Kakula Project, the company has based its assumptions
and analysis on certain factors that are inherently uncer tain. Uncertainties include: (i) the adequacy of
infrastructure; (ii) geological characteristics; (iii) metallurgical characteristics of the mineralization; (iv)
the ability to develop adequate processing capacity; (v) the pric e of copper; (vi) the availability of
equipment and facilities necessary to complete development; (vii) the cost of consumables and mining
and processing equipment; (viii) unforeseen technological and engineering problems; (ix) accidents or
acts of sabotage or terrorism; (x) currency fluctuations; (xi) changes in regulations; (xii) the compliance
by joint venture partners with terms of agreements; (xiii) the availability and productivity of skilled
labour; (xiv) the regulation of the mining industry by various governmental agencies; (x v) the ability to
raise sufficient capital to develop such projects; (xv i) changes in project scope or design ; and (xvii)
political factors.
Forward-looking statements and information involve significant risks and uncertainties, should not be
read as guarantees of future performance or results and will not necessarily be accurate indicators of
whether or not such results will be achieved. A number of factors could cause actual results to differ
materially from the results discussed in the forward -looking statements or information, including, but not
limited to, the factors discussed below and under “Risk Factors”, and elsewhere in this release, as well
as unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the
failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes
in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or
results that would justify and support continu ed exploration, studies, development or operations.
Although the forward-looking statements contained in this release are based upon what management of
the company believes are reasonable assumptions, the company cannot assure investors that actual
results will be consistent with these forward -looking statements. These forward -looking statements are
made as of the date of this release and are expressly qualified in their entirety by this cautionary