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Kamoa-Kakula Phase 1 concentrator plant approaching steady- state-design performance

Metallurgy & Processing

September 7, 2021

Kamoa-Kakula Phase 1 concentrator plant approaching steady-

state-design performance

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14,815 tonnes of copper produced in August, bringing the year-to-

date production to more than 36,700 tonnes

■

Installation of an additional concentrate filter expected by end of

October 2021, further boosting copper production

■

Phase 2 concentrator plant construction now 44% complete

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Mining crews delivered 220,000 tonnes of ore grading a record

6.03% copper from August 1 to 20, including 85,000 tonnes

grading 7.55% copper from the centre of the Kakula Mine

■

Surface ore stockpiles continue to grow; now hold 3.59 million

tonnes grading 4.77% copper, containing more than 171,000

tonnes of copper

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All six new turbines at the Mwadingusha hydropower plant now

operational and generating clean electricity for Kamoa-Kakula

KOLWEZI, DEMOCRATIC REPUBLIC OF CONGO – Ivanhoe Mines (TSX: IVN; OTCQX:

IVPAF) Co-Chairs Robert Friedland and Yufeng “Miles” Sun are pleased to announce

that hot commissioning and ramp-up of Kamoa-Kakula’s Phase 1, 3.8 million-tonne-per-

annum (Mtpa) concentrator plant is progressing well and approaching nameplate

steady-state-design performance.

During August, the plant achieved an average milling rate of more than 9,000 tonnes per

day at an average feed grade of more than 6.0% copper. On August 29, the Phase 1

concentrator plant produced in excess of 600 tonnes of copper in filtered concentrate,

which is the plant’s steady-state-design daily production rate.

2

During August, the concentrator plant produced concentrate containing 14,815 tonnes

of copper. As of August 31, a total of 36,712 tonnes of copper had been produced year-

to-date for delivery to either the Lualaba Copper Smelter near Kolwezi, or to

international markets. All concentrate produced to date has been loaded onto trucks

(either bulk for the Lualaba Smelter or in bags for international markets) and the

concentrate backlog at the mine site has been cleared.

Chart 1: Monthly tonnes of copper produced May 2021 to August 2021.

Steve Amos, Kamoa Copper’s Head of Projects, commented: “The hot commissioning

and ramp-up of the Phase 1 concentrator plant is going very well, with no significant

issues encountered to date. Fast tracking of an additional concentrate filter will enable

us to produce more concentrate and take advantage of the exceptional ore grades

coming from the Kakula Mine, as well as any additional milling throughput in excess of

design capacity. A third concentrate filter is being procured and will be incorporated

into the Phase 2 plant.”

Copper recoveries improved to an average of 83% during August, with recoveries in

excess of 86% achieved on multiple occasions. The Phase 1, steady-state-design

copper recovery is approximately 86%.

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Chart 2: Cumulative tonnes of copper produced May 2021 to August 2021.

Ivanhoe’s production guidance for contained copper in concentrate at Kamoa-Kakula in

2021 is 80,000 to 95,000 tonnes. The figures are on a 100%-project basis and metal

reported in concentrate is prior to refining losses or deductions associated with smelter

terms. The guidance assumes ramp-up from first production continues in line with

published technical disclosures.

Daily concentrate grades in excess of the steady-state-design grade of approximately

57% copper also have been achieved on several occasions, with the monthly average

exceeding 48% copper. The current focus of the commissioning team is on balancing

and optimizing the flotation and regrind milling areas. This work is expected to further

improve the consistency of concentrate grade and copper recoveries.

Commissioning and operation of the concentrator plant’s regrind mills is well

underway. The regrind mills are the final pieces of equipment to be commissioned in

the Phase 1 concentrator.

Kamoa-Kakula is fast tracking the installation of an additional concentrate filter, which

already has been delivered to the mine site, to be able to take advantage of copper feed

grades and milling rates in excess of design parameters. The additional concentrate

filter is expected to be installed by the end of October 2021, enabling the Phase 1

concentrator to produce more copper than its design capacity of approximately 200,000

tonnes per year.

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Watch a new video showcasing the ramp -up of copper production at

Kamoa-Kakula and the production of blister copper at the local Lualaba

Copper Smelter: https://vimeo.com/597748095/3e0676cb41

In early August, Ben Munanga, Kamoa Copper’s Chairman (right), welcomed

Princess Adèle Kayinda Mahina, the Democratic Republic of Congo’s Minister of

Portfolio, to the Kamoa-Kakula Copper Project. The DRC government’s 20%

interest in the Kamoa-Kakula Copper Project is managed by the Portfolio

Ministry.

Princess Adèle Kayinda Mahina (left) and Marna Cloete, Ivanhoe’s President and

CFO, inside a scooptram bucket during an underground visit of the Kakula Mine.

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Pouring Kamoa Copper blister ingots, containing approximately 99% copper, at

the Lualaba Copper Smelter near Kolwezi, Democratic Republic of Congo.

An electronic chip affixed to a Kamoa Copper blister copper ingot for tracking

and security.

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Phase 2 overall project 44% complete, with civil works effectively complete

and structural steel, mechanical, piping and platework (SMPP) erection and

installation well underway

Construction of the second 3.8-Mtpa concentrator plant (Phase 2) is progressing well,

with the overall project 44% complete; engineering and procurement activities are

nearing completion. Civil construction works also is nearing completion with the focus

now on erection of structural steel and the installation of platework and equipment. The

primary and secondary ball mill discharge sumps, as well as the mill base plates, are

being installed; mill installation is on the critical path. SMPP construction is on-going in

all areas.

Deliveries of structural steel, platework and mechanical equipment continue daily with

more than 321 truckloads already delivered to site and another 126 en-route.

Manufacturing of all long-lead items of equipment now is complete with several items

already delivered to site and the remainder en-route. The final major contract for

electrical, control and instrumentation (EC&I) supply and installation, has been

awarded. The Phase 2 concentrator remains on track for completion in Q3 2022.

Lifting the Phase 2 flotation conditioning tank into position.

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The Phase 2 concentrator plant under construction in the foreground, with the

operating Phase 1 concentrator plant in the background.

The side-by-side Phase 1 and Phase 2 concentrator plants.

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Chen Hong Tao (left) and Wang Pengfei installing the Phase 2 flotation base

plates.

Shells for the Phase 2 ball mills arriving at Kamoa-Kakula.