Name and Location
Kalukundi copper/cobalt project, Katanga province, Democratic Republic of Congo.

Project Description
The Kalukundi deposit has been defined through the evaluation of four fragments of mineralisation, namely Principal, Anticline, Kii and Kalukundi, within the Kalukundi concession area. An ore reserve of 7.8-million tons of oxide material grading 2.44% copper (Cu) and 0.69% cobalt (Co) has been defined within these four fragments.

The economics of the deposit are based on a production rate of 800 000 t/y for nominal production of 16 400 t/y Cu and 3 800 t/y Co.

The project will involve a conventional open-pit selective-mining-exploitation method, using a mining contractor. Also envisioned is a multiple pit and a multiple cutback method, which will require timely prestripping and blending of ore to maintain continuity of feed.

Given that the initial ore will be oxide ore, solvent extraction and electrowinning technology will be used to produce the final metal, with no smelting and refining required.

Value
$200-million.

Duration
Not stated.

Client
The project is owned by Africo Resources, in conjunction with State-controlled mining company La Générale des Carrière et des Mines (Gécamines).

The Kalukundi mineral rights are held by Swanmines, a company in which Africo Resources holds a 75% stake, with the remaining 25% held by Gécamines.

Key Contracts and Suppliers
MDM Engineering (review and cost update of the project’s bankable feasibility study (BFS)).

Latest Developments
Africo Resources has awarded South Africa-based MDM Engineering the contract for the increased throughput design update and cost revalidation of the BFS for the project. In May 2006, MDM completed the BFS, based on a throughput of 800 000-t/y on the Kalukundi copper/cobalt deposit.

Africo Resources has requested that MDM complete a review and cost update of the BFS and the front-end engineering design (Feed). The review will be based on the throughput of 1.25-million tons a year that was evaluated during the Feed process.

On Budget and on Time?
The project was expected to be in production by the end of 2009, following significant delays over a few years prior to that. The BFS was completed in 2006; however, as a result of undisclosed legal matters, the start of mine construction was delayed.

Currently, the project’s progress has not been announced.

Contact Details for Project Information
Africo Resources, tel +1 604 646 3225, fax +1 604 646 3226 or email info@africoresources.com.
MDM Engineering, tel +27 11 993 4300, fax +27 11 886 9306 or email info@mdm-engineering.com.