Kipoi Stage 2 DFS confirms project economics
PERTH (miningweekly.com) - Copper developer Tiger Resources on Wednesday reported that the definitive feasibility study (DFS) on the Stage 2 solvent extraction electrowinning facility at its Kipoi project, in the Democratic Republic of Congo (DRC), had confirmed the project economics.
Some 443 000 t of copper could be produced from the Kipoi Central, Kipoi North and Kileba deposits, over a nine-year period, the ASX- and TSX-listed Tiger reported.
“The results from the definitive feasibility study underline the robust economics of Kipoi and this should add significant value to our shareholders and the DRC,” said Tiger MD Brad Marwood.
The study found that, based on a copper price of $3.40/lb in 2014 to 2017, the project could generate an after-tax internal rate of return of 44% and a net present value of $378-million.
“The results are very encouraging and demonstrate that Kipoi should generate significant cash flow based on the forecasted low cash operating costs.”
The existing Stage 1 infrastructure at Kipoi would act as a springboard for the development of Stage 2; thereby, minimising the costs for the Stage 2 development, Marwood said.
After a short overlap period when the heavy media separation (HMS) and electrowinning facilities would operate simultaneously, the HMS plant would be superseded in the second quarter of 2014 by the electrowinning plant, which would produce LME grade A copper cathode directly at the mine site.
Marwood added that the HMS plant was currently producing above 36 000 t/y of copper, in a 25% concentrate.
The Stage 2 operation would initially process residue from the HMS plant, with around 4.9-million tons at 2.8% copper, which would provide feedstock for the electrowinning plant for the first two-and-a-half years.
On this basis, mining at Kipoi would only need to start in 2016.
“The company’s immediate aim was to further improve the Kipoi economics by expanding the resource, complete the feasibility study and move Stage 2 into development,” Marwood added.
He also noted that the combined Kipoi Stage 1 and 2 projects were fully funded on the basis of current average copper price projections, but added, however, that management considered it prudent to secure copper price hedging during the development of Stage 2, to ensure stability of revenue.
In conjunction with the hedging, Tiger also on Wednesday mandated Nedbank Capital to provide an $80-million project debt facility to partially fund the development of Stage 2.
Marwood said the facility would be used to supplement cash flow from the existing HMS operation at Kipoi in financing the construction, development and infrastructure for the $150-million Stage 2 development.
Stage 2 production would allow Tiger to increase its yearly output to some 50 000 t/y, with production slated to start in 2014.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation