Ivanhoe says DRC copper mine set to be world’s third largest

Ivanhoe Mines Ltd. [IVN-TSX, IVPAF-OTC] said the phase 3 concentrator at the company’s Kamoa-Kakula Copper mine complex in the Democratic Republic of Congo (DRC) has reached commercial production and is now milling at a name plate processing rate of 5.0 million tonnes annually.

In July, 2024, Kamoa-Kakula’s Phase 1, 2, and 3 concentrators achieved a combined monthly production rate of 36,000 tonnes of copper. Since first production, the Phase 3 concentrator has produced over 11,000 tonnes of copper in concentrate. The engineering team will soon commence study work targeting at increasing the concentrator’s recovery rate to 90%.

“Kamoa-Kakula’s operations team continues to achieve a very rare feat in our industry, delivering world-scale copper development projects ahead of schedule and, while also advancing smoothly through to commercial production at an impressive rate,’’ said Ivanhoe Executive Co-Chairman Robert Friedland. “Kamoa Kakula’s record-setting production in July marks the onset of rapid copper growth over the second half of 2024, with Phase 3 on track to increase annualized production capacity from approximately 450,000 tonnes to over 600,000 tonnes.,’’ he said.

Ivanhoe shares advanced on the news, rising 1.8% or 31 cents to $17.55 on volume of 434,590. The shares currently trade in a 52-week range of $21.32 to $9.89.

On a stand-alone basis, the Phase 3 concentrator is expected to produce approximately 150,000 tonnes of copper annually. In addition to the Phase 1 and 2 concentrators, total copper production capacity at Kamoa-Kakula is expected to be over 600,000 tonnes annually, making it the third largest copper mining operation globally.

The Kamoa-Kakula copper mine is a joint venture between Ivanhoe Mines (39.6%), Zijin Mining Group (39.6%), Crystal River Global Ltd., (0.8%) and the Government of the Democratic Republic (20%). It is a very large, near-surface, flat-lying, stratiform copper deposit with adjacent prospective exploration areas within the Central African Copperbelt, approximately 25 kilometres west of the town of Kolwezi, and about 270 kilometres west of the provincial capital of Lubumbashi.

Kamoa-Kakula began producing copper concentrates in May 2021 and began commercial production in July, 2021. On June 10, 2024, first concentrate production from the Phase 3.0 concentrator was achieved months ahead of schedule.

The operation’s 500,000 tonne-per-annum on-site, direct-to-blister copper smelter and the refurbishment of Turbine #5 at the Inga 11 hydroelectric facility area is advancing on schedule. Construction of the smelter is expected to be completed by the end of 2024, and Turbine #5 by the first quarter of 2025.

The Kamoa-Kakula preliminary economic assessment projects a nine-year mine life extension of the Kamoa-Kakula Copper Complex, in addition to the pre-feasibility study of 33 years. This case includes the addition of four new underground mines in the Kamoa area.