Kamoa-Kakula to begin copper production within a month
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May 3, 2021
Kamoa-Kakula to begin copper production within a month
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Mining crews deliver a record 409,000 tonnes of ore grading 5.71%
copper in April, including 121,000 tonnes grading 8.40% copper from
the centre of the Kakula Mine
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Pre-production ore stockpiles now hold three million tonnes grading
4.74% copper, containing more than 140,000 tonnes of copper
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Kamoa-Kakula’s first phase, 3.8-Mtpa concentrator 98% complete, with
advanced-stage commissioning underway
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Phase 2 expansion to 7.6 Mtpa progressing well toward a Q3 2022
start-up; study work underway for Phase 3 expansion to 11.4 Mtpa
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Agreement signed for an additional 162 MW of hydropower, providing
Kamoa-Kakula ample power for future expansions and smelting
operations – while supporting the DRC government to bring clean
electricity to its people
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Executive Co-Chair Robert Friedland to participate in a virtual fireside
discussion at the 2021 Goldman Sachs Copper Day on May 5
KOLWEZI, DEMOCRATIC REPUBLIC OF CONGO – Ivanhoe Mines (TSX: IVN; OTCQX:
IVPAF) Co-Chairs Robert Friedland and Yufeng “Miles” Sun are pleased to announce
accelerated construction and commissioning progress at the Phase 1 Kamoa-Kakula
concentrator plant. The target date for C4 commissioning (milling of ore and first
copper concentrate production) has been advanced to the end May or early June –
several months ahead of schedule.
Overall construction of the project’s first phase 3.8-Mtpa concentrator plant is
essentially complete, with the majority of the C1 (construction complete) certificates
signed off. The plant is energized with permanent power and C2 commissioning, which
involves electrical, control and instrumentation checks, is well advanced. Water is being
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circulated in certain areas of the plant, marking the beginning of C3 commissioning. C3
commissioning involves checking for leaks, certain instrument calibration, control loop
checks, and is the precursor to C4 commissioning (hot commissioning), which involves
processing ore through the plant to produce a copper concentrate.
Overall plant commissioning is running well ahead of schedule, with the first ore
expected to be added to the mill by the end of May 2021. Lower-grade ore will be fed
into the plant during the C4 commissioning phase, to ensure plant performance and
copper recovery are satisfactory before increasing the head grade.
The 409,000 tonnes mined in April comprised 357,000 tonnes grading 5.70% copper
from the Kakula Mine, including 121,000 tonnes grading 8.40% copper from the mine’s
high-grade centre, and 51,000 tonnes grading 5.85% copper from the Kansoko Mine.
The project’s pre-production surface stockpiles now contain approximately 3.0 million
tonnes of high-grade and medium-grade ore at an estimated blended average of 4.74%
copper. Kamoa-Kakula now has reached the 3.0-million-tonne target of mined high-
grade and medium-grade ore, several months ahead of the timeline estimated in the
2020 pre-feasibility study.
Contained copper in the stockpiles increased by approximately 23,000 tonnes in April –
to a cumulative total of more than 140,000 tonnes (the current copper price is
approximately US$9,950 a tonne).
Some of the approximately 7,000 employees and contractors who helped to build
the Phase 1, 3.8-Mtpa concentrator plant ahead of schedule and within budget.
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April’s underground mine development shatters all previous records with
advancement of more than 3,625 metres
Kamoa-Kakula also set another monthly mine development record in April, with an
advancement of more than 3,625 metres, bringing total underground development to
approximately 42.2 kilometres – more than 15 kilometres ahead of schedule.
Drift-and-fill stoping operations are progressing well at the Kakula Mine, with the
majority of the ore production coming from stoping operations and the remainder
coming from mine development activities. Drift-and-fill stoping is a highly-productive
mining method of extracting underground ore, where a single tunnel, known as a stope,
is extracted leaving an open void that is subsequently backfilled to allow for the
extraction of the neighbouring stope in sequence. The backfill plant, which will mix
tailings from the processing plant with cement to produce paste backfill, will begin
pumping backfill to the underground operations in July.
Mark Farren, Kamoa Copper’s CEO, remarked: “April was another month of great
performance by our mining teams, who continue to produce well above plan. We now
have reached our 3.0-million-tonne pre-production stockpile target. This stockpile likely
is to grow further as our monthly mining rate currently exceeds the Phase 1 milling rate,
and only should be drawn down once the Phase 2 concentrator begins operation in mid-
2022.
“Even more exciting is the fact that we have been able to significantly bring forward the
Phase 1 concentrator commissioning. We now expect to produce our first copper
concentrate by the end of May or early June, months ahead of the original schedule.
“We have fantastic people on site, who continue to achieve very tough milestones. We
expect to see the same kind of progress during our next challenge of ramping up the
plant to nameplate capacity and design recovery. Many of the key contractors have
been retained for Phase 2 to ensure continuity and to carry over learnings from Phase 1.
Phase 2 construction is moving along nicely and is tracking slightly ahead of plan.”
Mr. Friedland added: “We are proud of the entire Kamoa-Kakula team for their
remarkable dedication and accomplishments to deliver our Phase 1 production ahead of
schedule and on budget, despite the challenges presented by the COVID-19 pandemic.
We would especially like to extend our deepest gratitude to the Kamoa-Kakula
leadership team. Their unwavering passion, vision and commitment to excellence is
critical to the ongoing transformation and growth of our business.
“The start of production at Kakula marks the beginning of a multi-generational copper
mining district, consisting of numerous high-grade mines. We now turn our focus to
scaling up this expansive copper region in a manner that is ethically- and socially-
responsible, and setting a new global benchmark for the elimination of greenhouse
gases in the production of copper that the world urgently needs.”
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Robert Friedland to participate in a virtual fireside chat at the 2021
Goldman Sachs Copper Day on May 5 at 11:45 AM ET
Mr. Friedland will discuss Kamoa-Kakula’s expansion plans, the company’s Western
Foreland exploration plans, his views on the global copper market and copper’s role in
the green energy transition. He also will provide his thoughts on the inevitable
differential pricing for all commodities based on their ESG production characteristics as
blockchain technology is integrated and smarter markets are established. The Goldman
Sachs Copper Day conference is by invitation only for institutional clients.
“Given that Goldman Sachs’ metals strategists recently called copper the “new oil” and
predicted copper prices could reach US$15,000 a tonne by 2025, I expect it to be a lively
discussion,” said Mr. Friedland.
Members of Ivanhoe’s and Kamoa-Kakula’s multinational senior management
teams at Kakula’s Phase 1 concentrator’s pneumatic control valves. L-R:
Abraham Li (Director & Deputy General Manager, Kamoa Copper); Steve Amos
(Head of Projects, Kamoa Copper); Annebel Oosthuizen (Executive, Finance,
Kamoa Copper); Ben Munanga (Chairman, Kamoa Copper); Marna Cloete
(President and CFO, Ivanhoe Mines); Mark Farren (CEO, Kamoa Copper);
Rochelle de Villiers (Co-CFO, Kamoa Copper); Minty Cai (Co-CFO, Kamoa
Copper); and Olivier Binyingo (VP Public Affairs DRC, Ivanhoe Mines).
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Kakula is projected to be the world’s highest-grade major copper mine, with an initial
mining rate of 3.8 Mtpa at an estimated early average feed grade of more than 6.0%
copper, 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.
Given the current copper price environment, Ivanhoe and its partner Zijin are exploring
the acceleration of the Kamoa-Kakula Phase 3 concentrator expansion from 7.6 Mtpa to
11.4 Mtpa, which may be fed from expanded mining operations at Kansoko, or new
mining areas at Kamoa North (including the Bonanza Zone) and Kakula West.
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.
Kamoa-Kakula is connected to one of the world’s greenest power grids,
including power supplied from the newly upgraded Mwadingusha hydropower
plant.
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Pre-production ore stockpiles total 3.0 million tonnes grading 4.74% copper
Chart 1: Cumulative tonnes and grade of pre-production ore stockpiles at the
Kakula and Kansoko mines – May 2020 to April 2021.
Chart 2: Growth in contained copper in pre-production ore stockpiles at the
Kakula and Kansoko mines – May 2020 to April 2021.
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Chart 3: Growth in contained copper in surface stockpiles at Kamoa-Kakula to
July 2021. Dotted lines denote projections from the 2020 pre-feasibility study.
The ore being mined from the northern portion of the Kakula Mine is transported to
surface via the conveyor system and placed on a blended surface stockpile that now
contains approximately 1.64 million tonnes grading an estimated 4.93% copper.
Additional pre-production ore stockpiles are located at the Kakula southern decline
(987,000 tonnes at a blended grade of 4.75% copper) and the Kansoko decline (339,000
tonnes at blended grade of 3.78% copper).
Low-grade ore from surface stockpiles being conveyed to the run-of-mine ore
stockpile, to be used in early commissioning of the concentrator plant.
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Kakula’s main pre-production stockpiles at the northern declines. The blended
stockpiles currently contain approximately 1.64 million tonnes grading 4.93%
copper. The run-of-mine stockpile in the previous picture is circled in red.
Watch a new Kamoa-Kakula fly-over video showcasing the impressive progress
made over the last month: https://vimeo.com/544085443/17f43e0193
1.64 million tonnes @ 4.93% copper