Ivanhoe Mines Ltd. press release
Kamoa-Kakula Phase 1 Concentrator Plant Fully Operational; Hot Commissioning Activities Well-advanced, Final Performance Testing to Start Shortly
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First truckloads of copper concentrate delivered to local smelter on June 1; daily concentrate deliveries ongoing, first blister copper ingots received
Phase 2 concentrator expansion to 7.6Mtpa on track for Q3 2022; civil works and structural steel construction ahead of schedule
Kamoa Copper fully authorized to export blister copper and concentrate to international markets, off-take agreements in place
Mining crews deliver 338,000 tonnes of ore grading 4.59% copper in June, including 66,200 tonnes grading 7.71% copper from the centre of the Kakula Mine
Surface ore stockpiles hold 3.4 million tonnes grading 4.78% copper, containing more than 162,000 tonnes of copper
Ivanhoe Mines issues fourth annual Sustainability Report, showcasing achievements toward becoming a global ESG leader in mining
Kolwezi, Democratic Republic of Congo--(Newsfile Corp. - July 6, 2021) - Ivanhoe Mines (TSX: IVN) (OTCQX: IVPAF) Co-Chairs Robert Friedland and Yufeng "Miles" Sun are pleased to announce that Kamoa-Kakula's Phase 1, 3.8 million-tonne-per-annum (Mtpa) concentrator plant now is fully operational. First truckloads of copper concentrate were delivered to a local smelter on June 1, 2021, with concentrate dispatch continuing daily. To date, more than 10,500 dry metric tonnes of concentrate have been delivered to the local smelter, and first blister copper ingots have been received. Kamoa-Kakula's plant commissioning is well advanced, and preparation for final performance tests is underway.
First ore was fed into the concentrator plant on May 20 and the start of copper concentrate production occurred on May 25, several months ahead of schedule. As of June 30, 313,000 tonnes of ore grading 4.85% copperhad been conveyed to the run-of-mine (ROM) stockpile. The team currently is preparing for the final plant performance tests, which will conclude the C4 (or "hot") commissioning activities. Feed grades are expected to increase during the month of July.
On June 9, Ivanhoe Mines announced that Kamoa Copper SA had signed copper concentrate and blister copper off-take agreements, on competitive arm's-length commercial terms, with CITIC Metal (HK) Limited (CITIC Metal) and Gold Mountains (H.K.) International Mining Company Limited, a subsidiary of Zijin Mining Group, for 50% each of the copper products from Kamoa-Kakula's Phase 1 production. The company also secured all necessary authorizations to commence exports of copper products from the Kamoa-Kakula mine to international markets.
A total of 338,000 tonnes grading 4.59% copper was mined in June and comprised 295,000 tonnes grading 4.76% copper from the Kakula Mine, including66,200 tonnes grading 7.71% copperfrom the mine's high-grade centre, and 43,000 tonnes grading 3.43% copper from the Kansoko Mine.
Overall copper grades were slightly lower than the previous month, in part due to the requirement to feed lower-grade material directly to the plant during commissioning.
The project's pre-production surface stockpiles now contain approximately 3.4 million tonnes of high-grade and medium-grade ore at an estimated, blended average of 4.78% copper.Contained copper in the stockpiles at the end of May now totals more than 162,000 tonnes(the current copper price is approximately US$9,430 per tonne).
As the plant ramps up to full Phase 1 design capacity, and the mine towards Phase 2 production capacity, the surface stockpiles are expected to continue to build at a reduced rate.
Watch a new video showcasing the start of production at Kamoa-Kakula: https://vimeo.com/570976669/1306ccf2e1
Surveyor Celestin Kayemba Kayombo, a member of the construction team building Kamoa-Kakula's Phase 2 concentrator plant.
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(L-R) Control room supervisors Herribert Nyange, Jean-Claude Katanga and Jack Tambwe standing in front of Kamoa-Kakula's Phase 1 concentrator plant.
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First concentrate transport to Lualaba Copper Smelters (LCS) in Kolwezi on June 1, 2021. (L-R) Yang Wei, CEO, LCS; Rochelle de Villiers, CFO, Kamoa Copper SA; and Dong Ming, Deputy General Manager, LCS.
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Foundations for the Phase 2 plant module are progressing well, with civil works and structural steel construction ahead of schedule for Q3 2022 start-up.
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Mark Farren, Kamoa Copper's CEO, remarked: "The past month was dedicated to the Phase 1 plant commissioning, after celebrating Kamoa's first concentrate production on May 25. The team has moved on steadily with C4 plant commissioning. This is expected to take approximately four months, with incremental improvements in production expected as the plant is fully ramped up to design capacity. It was a very encouraging operational performance in June. We expect to achieve copper production for the remainder of the year in line with guidance, and solid progress also is being made on the Phase 2 concentrator plant construction, which is still tracking ahead of schedule."
Ivanhoe's guidance for contained copper in concentrate expected to be produced by Kamoa-Kakula for the balance of 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.
Lorraine Nkulu Ngoie, Control Room Supervisor.
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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 are jointly forecast to produce approximately 400,000 tonnes of copper annually. 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.
Stockpiled ore being loaded into the Bulk Reclaim Tip. The run-of-mine stockpile is in the upper right corner.
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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 off-take agreements signed for Phase 1 blister copper and copper concentrate; Kamoa Copper fully authorized to commence exports to international markets
On June 9, 2021, Ivanhoe Mines announced that Kamoa Copper SA had signed off-take agreements with CITIC Metal (HK) Limited (CITIC Metal) and Gold Mountains (H.K.) International Mining Company Limited, a subsidiary of Zijin Mining, for 50% each of the copper products from Kamoa-Kakula's Phase 1 production. The off-take agreements are evergreen for the production volumes from Phase 1, including copper concentrate and blister copper resulting from processing of copper concentrates at the Lualaba Copper Smelter.
The off-take agreements contain standard, international commercial terms, including copper payables and treatment and refining charges based on the annual benchmark across the copper industry. The ultra-high-grade, clean concentrate produced by Kamoa-Kakula is expected to contain approximately 57% copper and exceptionally low levels of impurities.
Bags of Kamoa-Kakula extremely high-grade, clean copper concentrate ready for export to international markets.
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Marna Cloete, Ivanhoe Mines' President and CFO, commented: "We are extremely pleased to have agreements with our partners CITIC Metal and Zijin at internationally-competitive terms, and to have recently secured a long-term tolling agreement with the local Lualaba Copper Smelter in keeping with our commitment to in-country beneficiation that includes Kamoa Copper's longer-term plan to construct its own direct-to-blister smelter.
We also have secured all necessary authorizations to commence export of clean, hydro-electricity-produced copper products from the Kamoa-Kakula mine to meet growing demand for the electrification of the world economy."
CITIC Metal and Zijin will purchase the copper concentrate at the Kakula Mine and the blister copper at the Lualaba Copper Smelter on a free-carrier basis, meaning the buyers will be responsible for arranging freight and shipment to the final destination, initially via the port of Durban, South Africa.
Dodo Mbay, Head of Processing, with a handful of copper concentrate inside the Kamoa-Kakula concentrator storage building.
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Kakula is expected to produce an extremely high-grade, clean copper concentrate (containing over 57% copper). Metallurgical test work indicates that the Kakula concentrates contain extremely low arsenic levels by world standards - approximately 0.01%.
Kamoa Copper also is evaluating the construction of a smelting complex to produce blister and anode copper. A downstream processing facility has a compelling rationale significantly reducing the overall volumes of copper concentrate shipped from the mine and the cost of transportation and logistics, export taxes and concentrate treatment charges, as well as producing sulphuric acid as a by-product. There is a strong demand and market for sulphuric acid in the Democratic Republic of Congo to recover oxide copper ores. Copper mines in the Democratic Republic of Congo currently import significant volumes of sulphur and sulphuric acid for the treatment of oxide copper ores.
Truckloads of Kamoa Copper's concentrate being transported to the Lualaba Copper Smelter near Kolwezi, which will produce blister copper ingots containing approximately 99% copper.
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Pre-production ore stockpiles total 3.4 million tonnes grading 4.78% copper
Chart 1: Cumulative tonnes and grade of pre-production ore stockpiles at the Kakula and Kansoko mines - May 2020 to June 2021.
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Chart 2: Growth in contained copper in pre-production ore stockpiles at the Kakula and Kansoko mines - May 2020 to June 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.
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Jean-Claude Mosompo, Flotation Operator.
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Kakula's main pre-production stockpiles at the northern declines. The blended stockpiles currently contain approximately 1.79 million tonnes grading 5.04% copper.
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Kamoa-Kakula achieved an advancement of more than 3,185 metres in June, bringing total underground development to approximately 48.9 kilometres - more than 17.5 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 August.
At both the Kakula South and Kansoko declines, high-grade ore of +6% copper is being stored in separate surface stockpiles that will provide the operating team with flexibility for optimizing the high-grade ore processed in the Phase 1 and Phase 2 concentrator plants.
Kakula southern decline high-grade and medium-grade ore stockpiles containing a combined 1.18 million tonnes grading 4.74% copper(consisting of 551,000 high-grade tonnes @ 6.34% copperand 628,000 medium-grade tonnes @ 3.33% copper).
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Kansoko decline high-grade and medium-grade ore stockpiles containing a combined 423,000 tonnes grading 3.82% copper(consisting of 116,000 high-grade tonnes @ 6.04% copperand 306,000 medium-grade tonnes @ 2.98% copper). Kansoko is located approximately 10 kilometres north of the Kamoa-Kakula concentrator plant.
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Figure 1: Underground development completed at Kakula Mine to June 30, 2021 (in black). [](https://orders.newsfilecorp.com/files/3396/89472_28cedc33149d3a3c_021full.jpg)
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Vongani Nkuna, Group Manager, Metallurgy, at the Phase 1 ball mill.
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(L-R) Sipamba Mwamba, Kasaola Ilunga and Elie Ngoie Tshisola working on masonry at the new Kamoa hospital.
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C4 (hot commissioning) of the project's first phase 3.8-Mtpa concentrator well underway
The concentrator plant now is fully operational with hot commissioning activities well advanced. In particular, the ongoing commissioning of the regrind mill is expected to improve concentrate quality. The first truckloads of concentrate were delivered to a local smelter on June 1, 2021, and concentrate dispatch is continuing daily. To date, more than 10,500 dry metric tonnes of concentrate have been delivered to the local smelter, and first blister copper ingots have been received. Preparation is underway for the final plant performance tests, which will conclude the C4 commissioning activities.
The concentrator plant currently is being operated and maintained by the Kamoa Copper operations and engineering teams with assistance from the project commissioning engineers.
Electrical installation at the backfill plant is nearing completion with some early C2 and C3 activities already started. The backfill plant is scheduled to be completed in July, with first paste delivered to the underground stopes in August.
The backfill plant will be used to mix tailings from the processing plant with cement to produce paste backfill. This backfill will be pumped back into the mine and used to help support mined-out areas. Approximately one half of the mine's tailings will be sent back underground, significantly reducing the surface tailings storage. Construction of the tailings storage facility is progressing well and is scheduled to be completed on time to receive tailings from the processing plant.
Derick Yav Tshang, Control Room Supervisor. Kamoa Copper is committed to training and advancement opportunities across its operations.
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Aerial view of the mining and training area at Kansoko, including the northern decline and high-grade and medium-grade ore stockpiles circled in red.
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Civil works more than 70% complete for the second 3.8-Mtpa concentrator plant, with numerous areas handed over to the Steel, Mechanical, Piping and Plate (SMPP) contractor; on-site steel pre-fabrication and erection has started
Construction of the second 3.8-Mtpa concentrator plant (Phase 2) is progressing well, with the current focus on the completion of civil works and structural steel erection. Both civil works and structural steel erection are tracking slightly ahead of schedule.
Engineering and procurement activities also are progressing well, with both more than 80% complete. Fabrication of structural steel and platework is nearing completion with the bulk of the steel and platework either delivered to site, or en route.
Manufacturing of all long-lead items of equipment is nearing completion with several items already delivered to site.
The award of the electrical, control and instrumentation installation contract is imminent.
(L-R) Tresor Kilolo Mpiana, Joyce Lenge Kabange, and Japhet Kibonge constructing the Phase 2 concentrator at Kamoa-Kakula.
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