Kamoa-Kakula sets new daily production record of 729 tonnes of copper; approximately 63,000 tonnes of copper produced year-to-
November 1, 2021
Kamoa-Kakula sets new daily production record of 729 tonnes of
copper; approximately 63,000 tonnes of copper produced year-to-
date to October 20, 2021
■
Phase 1 concentrator plant now operating at steady-state design;
optimization work underway to further enhance operating
performance
■
2021 production guidance range for copper in concentrate raised
to 90,000 to 95,000 tonnes
■
Phase 2 concentrator approximately 60% complete, with
construction team achieving 4 million hours worked without a
lost-time injury
■
Planning underway for a new box cut and decline to access
mining areas for Phase 3 expansion
■
Mining crews delivered 395,000 tonnes of ore grading 5.73%
copper in October, including 174,000 tonnes grading 6.91%
copper from the centre of the Kakula Mine
■
Surface ore stockpiles now hold 3.73 million tonnes grading
4.72% copper, containing more than 175,000 tonnes of copper
KOLWEZI, DEMOCRATIC REPUBLIC OF CONGO – Ivanhoe Mines (TSX: IVN; OTCQX:
IVPAF) Co-Chairs Robert Friedland and Yufeng “Miles” Sun announced that Kamoa-
Kakula’s Phase 1, 3.8 million-tonne-per-annum (Mtpa) concentrator plant has met, or
exceeded, all design criteria and now is operating at steady-state. Optimization work is
underway to further enhance the plant’s operating performance.
2
A total of 323,368 tonnes of ore was milled in October at an average feed grade of 5.89%
copper, exceeding the monthly design run rate of 316,667 tonnes.
Production during the last 10 days of October averaged 611 tonnes of copper in
concentrate per day. On October 25, a new daily production record of 729 tonnes of
copper in concentrate was achieved.
A record 16,211 tonnes of copper in concentrate was produced (filtered product) in the
reporting month ended October 20 – Kamoa Copper’s fifth full month of production –
nearing the Phase 1 target output of 16,666 tonnes per month, or 200,000 tonnes per
annum.
The average floated concentrate copper grade in October was 51.5%. A total of 62,974
tonnes of copper in concentrate had been produced year-to-date as of October 20, 2021,
for delivery to either the Lualaba Copper Smelter near Kolwezi, or to international
markets.
Copper flotation recoveries averaged 85.1% in October. The Phase 1, steady-state-
design copper recovery is approximately 86%, depending on ore feed grade.
As the Phase 1 concentrator plant is operating at steady-state design capacity, further
production updates will be provided only on a quarterly basis, but reporting on Phase 2
construction progress will continue. Ivanhoe Mines will report its Q3 2021 financial
results before market open on Monday, November 15, 2021, which will include the
inaugural quarterly financial results for Kamoa-Kakula.
Chart 1: Cumulative tonnes of copper produced May 2021 to October 20, 2021.
3
Mark Farren, Kamoa Copper’s CEO, commented: “October was an important milestone
month for us in many ways. The project team managed to commission the second
concentrate filter press which we believe will create a lot of flexibility downstream.
Concentrate volumes now can be increased to match the potential of the front end of
the concentrator plant (milling), enabling recoveries to be tweaked by increasing the
mass pull to the concentrate thickener. While it took a few weeks to fine tune the
second filter press, the plant performance met steady-state expectations despite
intermittent regional power outages during the first three weeks of October. The last 10
days of the month saw production average 611 tonnes of copper in concentrate, and a
new daily production record of 729 tonnes of copper was achieved on October 25. This
excellent achievement highlights the level of production we are targeting in future.
“Barring any major issues, the operational team is confident that we will reach the
upper end of our production guidance of between 90,000 and 95,000 tonnes of copper in
concentrate in 2021.
“Also during October, the Kakula mining team encountered a significant inflow of water
at the northern perimeter drift. This water inflow was well managed and monthly
underground production volumes were maintained at approximately 400,000 tonnes.
Surface ore stockpiles have increased to more than 3.73 million tonnes. This trend is
likely to continue into Q2 2022, when the Phase 2 concentrator is expected to begin
operations. The Phase 2 concentrator construction remains ahead of schedule and on
budget.”
Ivanhoe’s production guidance for contained copper in concentrate at Kamoa-Kakula in
2021 has been increased to 90,000 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 second concentrate filter press was commissioned during the month and now is
fully operational. The second filter removes a bottleneck to allow Kamoa-Kakula’s
Phase 1 concentrator to take advantage of the exceptionally high-grade copper ore
being processed directly from Kakula’s underground mining operations and surface
stockpiles, and produce copper concentrate above design parameters.
As a result of instability of the regional transmission network, intermittent power
outages were observed during the first three weeks of October. This had a negative
impact on October’s copper production and overall mine and mill performance. Kamoa
Copper, together with the DRC state-owned company La Société Nationale d'Electricité
(SNEL), have identified three critical areas in the regional transmission network that
require urgent upgrading to significantly improve network reliability, which are
expected to be completed in the next two months at an estimated capital cost of under
US$0.5 million. In addition, Kamoa Copper is evaluating longer-term options for back-up
power storage to maintain full operations during interruptions.
Watch a new Kamoa Copper video: https://vimeo.com/641073377/95131537ea
4
Phase 2 concentrator plant construction is approximately 60% complete,
with current focus on structural steel, mechanical, piping and platework
(SMPP); electrical installation now underway
On October 22, 2021, the project construction team reached 4.0 million lost-time-injury-
free hours. This milestone underscores the strict safety culture of the Kamoa Copper
construction team and contractors.
Construction of the second 3.8-Mtpa concentrator plant (Phase 2) is progressing well,
with the overall project approximately 60% complete; engineering and procurement
activities are effectively complete, with fabrication over 92% complete. The main
construction focus remains on the erection of structural steel and the installation of
platework and equipment. Both ball mills have been lifted into position and installation
of the girth gears currently is underway. The mill installation is expected to be complete
by the end of the year. All 14 flotation cells (eight rougher/scavengers and six cleaners)
are in position. Electrical cable installation has commenced.
The bulk of the 2,193 tonnes of structural steel and 570 tonnes of platework is on site
and the majority of the 18,644 metres of piping is en route to site. The last deliveries of
structural steel, piping and platework are expected to arrive by the end of November.
More than 550 truckloads of Phase 2 construction equipment and materials already
have been delivered to site and another 31 truckloads are en route.
All 14 flotation cells for the Phase 2 concentrator have been installed.
5
Phase 2 expansion of the concentrate storage warehouse is well underway.
Clement Kabuanga (left) and Herve Shimba installing Phase 2 ore conveyors.
6
Cranes lifting sections of the Phase 2 ore conveyors into place.
Installing the trunion bearing on the Phase 2 primary ball mill.
7
Ongoing installation of the two ball mills for the Phase 2 concentrator.
Construction of the Phase 2 HPGR tower and the feed and product conveyors (on
the right) adjacent to the Phase 1 HPGR tower and conveyors.
8
Wilbert Kakudji (left) and Jing Dong reviewing engineering drawings for the
Phase 2 ore conveyor systems.
Surveyor Lumbu Ghislain Pansemoya using ground-penetrating radar to locate
underground piping and cabling.