KAMOA-KAKULA, DEMOCRATIC REPUBLIC OF CONGO – Ivanhoe Mines (TSX: IVN; OTCQX:IVPAF) Co-Chairs Robert Friedland and Yufeng “Miles” Sun are pleased to announce today that the Kamoa-Kakula Copper joint venture has agreed to immediately proceed with orders for the long-lead equipment for the second, 3.8 million-tonne-per-annum (Mtpa) concentrator module at the Kakula Mine, which will double the mine’s processing capacity from 3.8 Mtpa to 7.6 Mtpa.
The earlier than planned placement of the orders for the concentrator’s long-lead equipment is expected to accelerate the completion of the Phase 2 mill expansion from Q1 2023 to Q2 2022.
“There are many smart people in the mining industry who strongly believe that copper is quickly approaching a supply and demand divergence; where the amount of copper being produced globally will be far outstripped by demand,” said Mr. Friedland. “As such, we want to ensure that the Kamoa-Kakula operation reaches its near-term production potential as expeditiously as possible, while also maintaining our strong balance sheet.”
“Getting into the queue now for the critical long-lead-time items, such as the ball mills, costs very little up-front money and enhances our flexibility to quickly move ahead on the first of multiple planned expansions.”
“The recent, independently-prepared pre-feasibility study for the expanded, 7.6 Mtpa mining operation – sourcing ore from both the Kakula and Kansoko mines – highlights the exceptional economic returns of this second phase development. Notably, the study outlines an after-tax NPV8% of US$6.6 billion and an IRR of 69% over a 37-year mine life, as well as payback of just 2.5 years,” Mr. Friedland added. “This economic model assumes a copper price of US$3.10 per pound, although at least one major global investment bank is forecasting prices ranging from US$3.20 to US$3.60 per pound over the next six to twelve months based on its view that a supply deficit will form in 2021. The studies also assume that financing will be on the basis of 100% equity, providing the opportunity to increase returns by leveraging commercial or other debt facilities.”
Construction of Kakula’s initial 3.8-Mtpa processing plant is well underway, with the remaining long-lead items already delivered to site, with the exception of the transformers, expected in October. The bulk of the structural steel has already been delivered to site. Ivanhoe Mines is fully-financed to Phase 1 copper production at the Kakula Mine, which is scheduled for Q3 2021, with consolidated cash of approximately US$496 million at the end of June 2020 and no significant debt.
Aerial picture of Kakula’s initial 3.8-Mtpa processing plant under construction.
Flotation cells, manufactured by Outotec, in Finland and South Africa, installed at Kakula’s initial 3.8-Mtpa processing plant.
With first phase production less than a year away, Kamoa-Kakula partners accelerate expansion plans and bring Phase 2 copper production forward
In order tobring forward the expansion of the Kakula processing plant from 3.8 million tonnes per annum (Mtpa) to 7.6 Mtpa from Q1 2023 to Q2 2022, the Kamoa-Kakula joint venture will order long-lead items with a total commitment value of approximately US$100 million within the coming weeks, of which an estimated US$25 million is expected to be spent this year.
In parallel, Ivanhoe and Zijin are in advanced discussions with respect to various financing proposals at the joint-venture level, including an equipment-financing facility, a line of credit, and project financing. Ivanhoe expects that one, or more, of the financing facilities will be successfully concluded in the fourth quarter of this year. Ivanhoe will continue to fund its share of approximately 50% of the expansion costs until such a time that an alternative financing facility has been concluded.
Kakula is projected to be the world’s highest-grade major copper mine with an estimated average ore feed grade of 6.6% copper over the first five years of operation, and 6.2% copper over the first 10 years.
At the end of August, the project’s pre-production surface ore stockpiles totalled an estimated 671,000 tonnes grading 3.36% copper, including 116,000 tonnes of high-grade ore grading 6.08% copper. The stockpile grade should continue to increase as the project approaches initial production; as beginning this month the majority of mining at Kakula is expected to be in the ore zone near the centre of the deposit that has copper grades of between 5% and 8%.
Given that the underground development completed to date is well ahead of schedule, the project’s engineers are working to further optimize the mine plans outlined in the recent definitive feasibility study and pre-feasibility study in order to accelerate the ramp-up of the mine and increase the tonnes of ore in the stockpile which may be processed through the expanded processing plant.
Miner Jacques Kitobo, examines a piece of ore from an ultra-high-grade working face in the room-and-pillar section of Kakula Mine, near the northern declines. Kakula’s high concentration of the gray-coloured, chalcocite ore (chalcocite is almost 80% copper by weight) accounts for the mine’s estimated high average feed grade of 6.6% copper over the first five years of operations, and 5.2% copper on average over a 21-year life.
Recently arrived transport trucks carrying structural steel and the mill shell in four pieces for the second of two identical ball mills to be installed at Kakula’s initial 3.8-Mtpa processing plant.
In late August, the shells, discharge end and trunnion were installed for the plant’s first, 9.75-metre-long and 6.1-metre-wide, ball mill, manufactured by CITIC Heavy Industries in Luoyang, China. The 7-megawatt, variable-speed-drive motor for the first ball mill, manufactured by WEG Industries in Brazil,was installed in early September. The second ball mill will be installed on the adjacent concrete foundation.
Phased expansion scenario to 19 Mtpa in the new Kamoa-Kakula IDP 2020 would position Kamoa-Kakula as the world’s second largest copper mining complex, with peak annual copper production of more than 800,000 tonnes
On September 8th, Ivanhoe announced the outstanding economic results of the independent Integrated Development Plan (IDP) for the tier one Kamoa-Kakula Copper Project. The IDP comprises three development scenarios: Kakula definitive feasibility study (DFS), Kakula-Kansoko pre-feasibility study (PFS), and Kamoa-Kakula preliminary economic assessment (PEA).
The estimated remaining initial capital cost is approximately US$0.7 billion, based on commissioning the Phase 2 mill expansion in Q1 2023. Ivanhoe’s share is approximately 50%, with subsequent expansions funded by cash flows.
The new DFS evaluates the stage-one, 6-million-tonnes-per-annum (Mtpa) Kakula Mine currently being constructed. The PFS evaluates mining 1.6 Mtpa from the Kansoko Mine, in addition to 6 Mtpa from Kakula, to fill a 7.6-Mtpa processing plant at Kakula. The PEA evaluates an integrated, multi-stage development to achieve a 19-Mtpa production rate.
The full scope of the expanded facilities covered by the PFS includes: underground expansion at the Kakula Mine to reach an annual production rate of 6 Mtpa; the ramp-up of mining operations at the Kansoko Mine to a steady state 1.6 Mtpa; a second 3.8-Mtpa concentrator module at Kakula; and associated surface infrastructure to support the expansion at the various sites.
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 DRC government (20%).
Disclosures of a scientific or technical nature regarding the Kamoa-Kakula Project in this news release have been reviewed and approved by Steve Amos, who is considered, by virtue of his education, experience and professional association, a Qualified Person under the terms of NI 43-101. Mr. Amos is not considered independent under NI 43-101 as he is the Head of the Kamoa-Kakula Project. Mr. Amos has verified the technical data disclosed in this news release.
Other disclosures of a scientific or technical nature in this news release have been reviewed and approved by Stephen Torr, who is considered, by virtue of his education, experience and professional association, a Qualified Person under the terms of NI 43-101. Mr. Torr is not considered independent under NI 43-101 as he is the Vice President, Project Geology and Evaluation. Mr. Torr has verified the other technical data disclosed in this news release.
The stockpile grade estimates contained in this news release are based upon bulk ore sampling from underground headings. Sampling is done on each heading every second blast and three 5-kilogram samples are taken. The samples are pulverized at the project’s onsite laboratory and analyzed used using a portable XRF (pXRF) instrument. Kamoa Copper has routinely analyzed its exploration drill core for copper using pXRF, in addition to analysis at a commercial laboratory using four acid digest and ICP-OES. This data has demonstrated that pXRF results can be relied upon for grade control and run-of-mine sampling.
Ivanhoe Mines has prepared a current, independent, NI 43-101-compliant technical report for the Kamoa-Kakula Project, which is available on the company’s website and under the company’s SEDAR profile at www.sedar.com:
- The Kamoa-Kakula 2020 Resource Update dated March 25, 2020, prepared by OreWin Pty Ltd., Wood plc, DRA Global, SRK Consulting (South Africa) (Pty) Ltd and Stantec Consulting International LLC.
The technical report includes relevant information regarding the assumptions, parameters and methods of the mineral resource estimates on the Kamoa-Kakula Project cited in this news release, as well as information regarding data verification, exploration procedures and other matters relevant to the scientific and technical disclosure contained in this news release.
A new independent, NI 43-101-compliant technical report for the Kamoa-Kakula Project, is being prepared and will be filed on SEDAR at www.sedar.com and on the Ivanhoe Mines website at www.ivanhoemines.com within 45 days of the issuance of Ivanhoe’s September 8, 2020, news release.
About Ivanhoe Mines
Ivanhoe Mines is a Canadian mining company focused on advancing its three principal projects in Southern Africa: the development of new mines at the Kamoa-Kakula copper discoveries in the Democratic Republic of Congo (DRC) and the Platreef palladium-platinum-nickel-copper-rhodium-gold discovery in South Africa; and the extensive redevelopment and upgrading of the historic Kipushi zinc-copper-germanium-silver mine, also in the DRC. Ivanhoe also is exploring for new copper discoveries on its wholly-owned Western Foreland exploration licences in the DRC, near the Kamoa-Kakula Project.
Bill Trenaman +1.604.331.9834
Matthew Keevil +1.604. 558.1034
Certain statements in this news release constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as “may”, “would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict” and other similar terminology, or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.
Such statements include without limitation: (i) statements regarding Kamoa Holding's use of the secured term loan funds; (ii) statements regarding first copper concentrate production at the Kakula Mine in Q3 2021; (iii) statements regarding doubling the mine's processing capacity from 3.8 Mtpa to 7.6 Mtpa; (iv) statements regarding the Kamoa-Kakula joint venture will order long-lead items with a total commitment value of approximately US$100 million within the coming weeks, of which an estimated US$25 million is expected to be spent this year and Ivanhoe will fund its share of approximately 50% of the expansion costs until such a time that an alternative financing facility has been concluded; (v) statements regarding the estimated remaining initial capital cost for all three development scenarios is between US$0.6 billion and US$0.7 billion and Ivanhoe’s share is approximately 50%, with subsequent expansions funded by cash flows; (vi) statements regarding the increase of both the grade and tonnages of the stockpiles in coming months; and (vii) statements regarding by placing orders now for the concentrator’s long-lead items, the project accelerates the Phase 2 mill expansion from Q1 2023 to Q2 2022.
As well, all of the results of the pre-feasibility study for the Kakula copper mine and the updated and expanded Kamoa-Kakula Project preliminary economic assessment constitute forward-looking statements or information, and include future estimates of internal rates of return, net present value, future production, estimates of cash cost, proposed mining plans and methods, mine life estimates, cash flow forecasts, metal recoveries, estimates of capital and operating costs and the size and timing of phased development of the projects. Furthermore, with respect to this specific forward-looking information concerning the development of the Kamoa-Kakula, the company has based its assumptions and analysis on certain factors that are inherently uncertain. Uncertainties include: (i) the adequacy of infrastructure; (ii) geological characteristics; (iii) metallurgical characteristics of the mineralization; (iv) the ability to develop adequate processing capacity; (v) the price of copper, nickel, zinc, platinum, palladium, rhodium and gold; (vi) the availability of equipment and facilities necessary to complete development; (vii) the cost of consumables and mining and processing equipment; (viii) unforeseen technological and engineering problems; (ix) accidents or acts of sabotage or terrorism; (x) currency fluctuations; (xi) changes in regulations; (xii) the compliance by joint venture partners with terms of agreements; (xiii) the availability and productivity of skilled labour; (xiv) the regulation of the mining industry by various governmental agencies; (xv) the ability to raise sufficient capital to develop such projects; (xiv) changes in project scope or design, (xv) political factors, and (xvi) the impact and effect of COVID-19.
Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations.
Although the forward-looking statements contained in this news release are based upon what management of the company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.
刚果民主共和国卡莫阿-卡库拉— 艾芬豪矿业(TSX: IVN; OTCQX:IVPAF) 联席董事长罗伯特· 弗里兰德(Robert Friedland) 与孙玉峰(Miles Sun) 今天宣布，卡莫阿-卡库拉(Kamoa-Kakula) 铜矿合资项目同意立即为卡库拉(Kakula) 矿山第二座年处理矿量380万吨的选矿厂订购长周期设备，这将使矿山的选矿产能从380万吨/年增加至760万吨/年。
弗里兰德先生补充说﹕“最近发布的760万吨/年扩产采矿作业(从卡库拉和卡索科矿山开采矿石) 的独立预可行性研究，明确了第二序列开发的可观经济回报。值得注意的是，预可研概述了项目于37年全矿山寿命的税后净现值(拆扣率8%) 达66亿美元，内部收益率为69%，回报期仅仅2.5年。 这个经济模型假设铜价为每磅铜3.10美元，但目前至少有一家主要的全球投资银行认为2021年将会出现铜供应短缺的情况，因此预测未来6至12个月的铜价将会在每磅铜3.20美元至3.60美元之间。预可研还假设融资安排将以100% 股权为基础，从而有机会利用商业贷款或其他债务融资来进一步提升回报。”
艾芬豪矿业于9 月 8 日公布卡莫阿-卡库拉顶级铜矿项目的独立综合开发方案的非凡经济测算结果。综合开发方案涵盖三种开发规划：卡库拉最终可行性研究，卡库拉-卡索科预可行性研究和卡莫阿-卡库拉初步经济评估。
卡莫阿-卡库拉铜矿项目是艾芬豪矿业(占股39.6%)、紫金矿业集团(占股39.6%)、晶河全球(占股0.8%) 及刚果政府(占股20%) 的合资项目。
本新闻稿中关于卡莫阿-卡库拉项目的科学或技术性披露已经由Steve Amos 审查和批准，他凭借其教育、经验和专业协会会籍被认为是NI 43-101 标准下的合资格人士。由于Amos先生是卡莫阿-卡库拉项目的负责人，因此他并不符合NI 43-101 对独立人士的界定。 Amos 先生已核实本新闻稿所披露的技术数据。
本新闻稿中的其它科学或技术性披露已经由 Stephen Torr 审查和批准，他凭借其教育、经验和专业协会会籍被认为是 NI 43-101 条款下的合资格人士。由于 Torr 先生是项目地质和评估副总裁，因此他并不符合NI 43-101 对独立人士的界定。 Torr 先生已核实本新闻稿所披露的其它技术数据。
本新闻稿所载的矿堆品位估算值是基于从地下巷道的大块矿石取样。每个巷道进行第二次爆破时取样，并收集3个5公斤重的样品。样品在项目现场实验室粉碎后，使用便携式XRF (pXRF) 仪器进行分析。除了在商业实验室利用4种酸分解液和ICP-OES进行分析之外，卡莫阿铜业也经常使用pXRF分析其钻孔岩芯中的铜含量。该数据表明，pXRF结果可用于品位控制和采矿井取样。
艾芬豪矿业已经为卡莫阿-卡库拉项目编制了一份符合NI 43-101 标准的最新独立技术报告，该报告可在SEDAR 网站上的艾芬豪页面获得，网址为www.sedar.com：
- 2020年3月25日发布的2020年卡莫阿-卡库拉资源更新，由OreWin Pty Ltd.、Wood plc、DRA Global、SRK Consulting (South Africa) (Pty) Ltd 和Stantec Consulting International LLC编制。
艾芬豪矿业是一家加拿大的矿业公司，目前正推进旗下位于南部非洲的三大项目﹕位于刚果民主共和国 (以下简称“刚果”) 的卡莫阿-卡库拉铜矿和位于南非的普拉特瑞夫 (Platreef) 钯-铂-镍-铜-铑-金矿的新矿山开发工程，以及同样位于刚果、久负盛名的基普什 (Kipushi) 锌-铜-锗-银矿的大型重建和改善工程。同时，艾芬豪正在刚果境内其全资拥有、毗邻卡莫阿-卡库拉项目的西部前沿 (Western Foreland) 勘探许可区内寻找新的铜矿资源。
投资者﹕Bill Trenaman +1.604.331.9834
媒体﹕Matthew Keevil +1.604. 558.1034
该等陈述包括但不限于﹕(i) 关于卡莫阿控股运用担保贷款资金的陈述；(ii) 关于卡库拉矿山将于2021年第三季度实现首批铜精矿投产的陈述；(iii ) 关于矿山选矿产能从380万吨/年增加至760万吨/年的陈述；(iv) 关于卡莫阿-卡库拉的合资伙伴将会在未来数周内订购总值约1亿美元的长周期设备，预计今年将会花费其中约2,500万美元，以及艾芬豪将继续为其扩建开支约50%的份额出资，直到替代的融资安排到位为止的陈述；(v) 关于三种开发方案的剩余初期资本开支约为6-7亿美元，其中艾芬豪需出资近50%，后续扩建将由项目现金流出资的陈述；(vi) 关于在接下来几个月，矿堆的品位将会提升和矿石量将得到扩充的陈述；以及(vii) 关于现在订购选矿厂的长周期设备，项目可加快选矿厂第二序列扩建的时间，从2023年第一季度提前至2022年第二季度的陈述。
此外，卡库拉铜矿预可行性研究的所有结果以及更新和扩展的卡莫阿-卡库拉项目初步经济评估，构成了前瞻性陈述或信息，并包括内部收益率的未来估算、净现值，未来产量、现金成本估算、建议采矿方案和方法、矿山寿命估计、现金流预测、金属回收率、资本和运营成本估算，以及项目分期开发的规模和时间点。另外，对于与卡莫阿-卡库拉项目开发有关的特定前瞻性信息，公司是基于某些不确定因素而作出假设和分析。不确定因素包括：(i) 基础设施的充足性；(ii) 地质特征；(iii) 矿化的冶金特征；(iv) 发展充足选矿产能的能力；(v) 铜、镍、锌、铂金、钯、铑和黄金的价格；(vi) 完成开发所需的设备和设施的可用性；(vii) 消耗品和采矿及选矿设备的费用；(viii) 不可预见的技术和工程问题；(ix) 事故或破坏或恐怖主义行为；(x) 货币波动； (xi) 法例修订；(xii) 合资伙伴对协议条款的遵守情况；(xiii) 熟练劳工的人手和生产率；(xiv) 各政府机构对矿业的监管；(xv) 筹集足够资金以发展该等项目的能力；(xiv) 项目范围或设计更变；(xv) 政治因素；以及(xvi) COVID-19造成的打击和影响。