Name and Location
Kinsevere mine Stage 2 development, Democratic Republic of Congo (DRC).

Client
TSX- and ASX-listed Anvil Mining.

Project Description
The Kinsevere deposit is hosted within the Katangan copperbelt, which is renowned for its high-quality minerals, some 30 km north of Lubumbashi, the provincial capital of the Katanga province.

The Kinsevere mine Stage 2 development involves the construction of a 60 000 t/y solvent extraction and electrowinning (SX-EW) plant, designed to produce London Metal Exchange Grade A-quality copper cathode directly at the mine site.

The Stage 1 development of Kinsevere comprised an openpit mining operation, started during the first quarter of 2007 on the Tshifufia and Tshifufiamashi pits; a one-million-ton-a-year dense-media separation plant; and an electric arc furnace with capacity to produce 23 000 t/y to 25 000 t/y of ‘black copper’ ingots, grading 85% to 95% copper.

The key aspects of the infrastructure developed for Stage 1 are being used for Stage 2 development.

Value
$400-million.

Duration
Commercial production began in the third quarter of 2011.

Latest Developments
Anvil Mining has reported that 2011 production at the Kinsevere project was 29 000 t, slightly below the 30 000 t to 31 000 t guidance the company previously provided.

The ramp-up to full production at the project has been pushed to end of the first quarter of 2012, rather than the end of December, as technical difficulties were experienced at the plant’s electrowinning transformers.

Despite the technical difficulties, the project has made progress. The current efficiency in the tank-house is close to design specifications and further improvements are expected in January and February, as planned equipment improvements are implemented. These achievements have helped to mitigate some of the short-term technical difficulties.

Meanwhile, Minmetals has extended its C$8-a-share offer for Anvil by more than a month.

Since the initial takeover bid was made in September 2011, Anvil and Minmetals have been consulting various stakeholders in the DRC. In October, State-owned joint venture partner Gecamines, which holds the mineral lease for the Kinsevere project, advised Anvil that the financial terms of the lease agreement could be reviewed after Minmetals takeover.

DRC Mining Company Katanga (MCK), which owns a 5% interest in the Kinsevere project, has also told Anvil that the Minmetals bid will require prior approval from MCK. However, despite Anvil’s position that there is no legal requirement for the approval of either Gecamines or MCK under any of its contractual documentation, and that the company has fully complied with its contractual obligations, negotiations with the affected parties are still ongoing.

Key Contracts and Suppliers
Ausenco (engineering, procurement and construction).

On Budget and on Time?
The ramp-up to full production at the project has been pushed to end of the first quarter of 2012.

Contact Details for Project Information
Anvil Mining corporate VP Philippe Monier, tel +61 8 9481 4700, fax +61 8 9201 0125 or email philippem@anvilmining.com; or corporate affairs VP Robert La Vallière, tel +1 514 448 6664 or email robertl@anvilmining.com.