Construction of Phase 2 of Canadian miner Ivanhoe Mines’ Kamoa-Kakula project is now progressing “slightly ahead of plan” and remains on track for start-up in the third quarter of 2022.

This follows the commercial production achieved at the Democratic Republic of Congo (DRC) project’s Phase 1 concentrator plant last month.

Kamoa-Kakula’s initial production guidance, on a 100%-project basis, is between 80 000 t and 95 000 t of copper in concentrate for this year.

Phase 2 will result in a doubling of mill throughput to 7.6-million tonnes a year. Combined, Phase 1 and Phase 2 are forecast to produce about 400 000 t/y of copper.

Study work to accelerate the Phase 3 mine and concentrator expansion to at least 11.4-million tonnes a year is ongoing, Ivanhoe said on August 11, adding that, based on independent benchmarking, the project’s phased expansion scenario to 19-million tonnes a year “would position Kamoa-Kakula as the world’s second-largest copper mining complex”, with peak copper production of more than 800 000 t/y.

At the end of July, Kamoa-Kakula’s surface ore stockpiles held about 3.5-million tonnes grading 4.77% copper, containing more than 168 000 t of copper.

Ivanhoe, together with its partner Zijin, is exploring the acceleration of the Kamoa-Kakula Phase 3 concentrator expansion, which includes optimisation work to determine mining production capacity and costs at the various mining areas on the Kamoa-Kakula complex, including expanded facilities at the Kansoko Mine, Kamoa North (including the Bonanza Zone) and Kakula West.

Kamoa Copper, the company through which Ivanhoe and Zijin hold the Kamoa-Kakula project, is also refining its longer-term downstream processing strategy, including the potential construction of a smelter or hydrometallurgical processing facility.

In April, Ivanhoe Mines Energy DRC entered into an agreement with the DRC's State-owned power company Société Nationale d'Électricité (SNEL) to upgrade a major turbine at the Inga II hydropower facility.

The upgraded turbine is expected to produce 162 MW of clean, renewable hydropower, providing the Kamoa-Kakula copper mine with sufficient, sustainable electricity for future expansions, including a copper smelter.

In May, Ivanhoe pledged to achieve net-zero operational greenhouse-gas emissions (Scope 1 and 2) at Kamoa-Kakula.

Since the mine already is powered by clean, renewable hydro-generated electricity, Ivanhoe said the focus of its net-zero commitment would be on electrifying the project's mining fleet with new, state-of-the-art equipment powered by electric batteries or hydrogen fuel cells.

Emissions-free underground mining equipment, at the size and scale required for Kamoa-Kakula's bulk-scale operations, is at an advanced stage of development by several of the world's leading equipment manufacturers, the miner confirmed.

During the second quarter of the year, Ivanhoe continued its copper exploration programme on its Western Foreland licences that cover a combined area of about 2 550 km² in close proximity to Kamoa-Kakula.

Drilling in the quarter was focused on the western and eastern extensions of the Makoko discovery, as well as the northern and western extensions of the Kiala discovery.

Good progress was made on the construction of critical infrastructure to access high-priority, newly-acquired westerly exploration permits, including the construction of a 60 km spine road across the Western Foreland and a new bridge across the Lubudi river.

PLATREEF

In February, Ivanhoe announced that its South African subsidiary, Ivanplats, was arranging project-level financing of up to $420-million to advance development of the world-scale Platreef palladium, rhodium, platinum, nickel, copper and gold project in South Africa. 

Ivanplats has signed a nonbinding term sheet with Orion Mine Finance for a $300-million gold, palladium and platinum streaming facility.

Ivanplats has also appointed two international commercial banks – Societe Generale and Nedbank - as mandated lead arrangers for a senior project debt facility of up to $120-million.

Ivanplats' proposed financings follow the November 30, 2020, issuance of the outstanding findings of an independent Platreef Integrated Development Plan 2020 (Platreef IDP20), which consists of an updated feasibility study (Platreef 2020 FS) and a preliminary economic assessment (Platreef 2020 PEA).

The initial capital cost for the phased development plan under the Platreef 2020 PEA, starting at a mining rate of 700 000 t/y, is estimated at $390-million.

Detailed engineering is progressing on Platreef's 700 000 t/y initial mine design, 770 000 t/y concentrator plant and associated infrastructure for the phased development plan, which is scheduled to be incorporated into an updated feasibility study by year-end or early in 2022.

The Shaft 1 changeover is progressing well in preparation for permanent hoisting in early 2022.

Construction activities on the Shaft 2 headframe also are advancing, Ivanhoe said on August 11.

Further, in July, Ivanplats ordered emissions-free, battery electric drill rigs and underground loaders from Swedish manufacturer Epiroc, for use in the mine's underground development.

Meanwhile, a feasibility study and development and financing plans for the Kipushi mine’s redevelopment, in the DRC, are being reviewed by Ivanhoe together with its joint venture partner and State-owned mining company Gécamines.

The project is maintaining a reduced workforce to conduct maintenance activities and pumping operations, the miner said.

Overall, Ivanhoe said it has “made excellent progress” in upgrading Kipushi's underground infrastructure to allow for mining to quickly begin at the ultra-high-grade Big Zinc orebody.

Resumption of production at the mine now requires the construction of a surface processing plant and other related production facilities, and discussions are continuing with Gécamines to advance a new era of production at Kipushi and it is anticipated that these discussions will be concluded with the finalisation of the feasibility study and the agreement on the development and financing plan.