DRILLING AT KAMOA Members of Ivanhoe’s exploration team received the prestigious Thayer Lindsley Award from the Prospectors and Developers Association of Canada for the Kamoa copper discovery, recognised as 2014’s top international mineral discovery
Canadian mineral and exploration development company Ivanhoe Mines launched the Ivanhoe Mines Fionet programme in the third quarter of 2015 to improve health services in the Democratic Republic of Congo (DRC), where it operates two copper projects.
The Fionet system, developed by Canada-based Fio Corporation, will be introduced into the DRC through the three-year programme, which is sponsored by Ivanhoe.
Fionet combines mobile, intelligent devices and cloud data services to help health workers improve the accuracy of diagnostic testing and the quality of care that they provide for patients.
With support from US-based Chemonics International, DRC health workers will use the Fionet system to strengthen activities under the country’s National Malaria Control Programme.
The first phase of the Ivanhoe Mines Fionet programme will cover two established provincial health zones that service 300 000 residents living in 40 urban centres and 330 villages.
The Kipushi health zone, in southern Haut-Katanga province, includes Ivanhoe’s Kipushi mine project, while the Kanzenze health zone, in Lualaba province, hosts Kamoa, where Ivanhoe achieved in excess of 4.3-million hours of work without a lost-time injury by the end of the 2015 third quarter.
Kamoa, is a large, stratiform copper deposit with adjacent prospective exploration areas within the Central African Copperbelt,where a prefeasibility study (PFS) is progressing. The completed report is expected to be finalised in early 2016.
The Kamoa project lies about 25 km west of Kolwezi and about 270 km west of Lubumbashi.
Metallurgical testwork has indicated that copper recoveries averaging 86% and con-centrate grades averaging 39% copper are achievable at Kamoa.
The PFS is based on the project’s planned first phase and, therefore, will be consistent with the phased approach to project development outlined in the 2013 Kamoa preliminary economic assessment.
Phase 1 will see the construction of an underground operation that will produce three-million tonnes of ore every year and feed an adjacent concentrator.
In May, Chinese gold, copper and nonferrous metals producer Zijin Mining Group agreed to acquire a 49.5% share interest in Ivanhoe’s subsidiary, Kamoa Holding, which presently owns 95% of the Kamoa project.
Ivanhoe and Zijin agreed to a strategic codevelopment of the Kamoa copper discovery and Zijin pledged to do its best to arrange project financing for Kamoa’s first phase.
Ivanhoe agreed to sell a 49.5% share interest in Kamoa Holding to Zijin for an aggregate consideration of $412-million.
The purchase price will be satisfied by an initial payment of $206-million in cash on the closing of the transaction. The agreements specify that the remaining $206-million will be paid in five equal instalments, payable every 3.5 months from closing.
Ivanhoe also agreed to the sale of 1% of its share interest in Kamoa Holding, which currently owns 95% of Kamoa Copper SA, to Crystal River Global for $8.32-million.
Ivanhoe and Zijin subsequently announced on November 23 that they would complete their agreement for Zijin’s investment in Kamoa on or before December 8.
In June, Ivanhoe reconfirmed the company’s commitment to finalise an agreement for the sale of a further interest of up to 15% in the Kamoa project to the DRC government, which currently holds 5%.
“Constructive and cordial negotiations between Ivanhoe Mines and the DRC govern-ment are continuing to finalise the terms of a definitive agreement,” Ivanhoe reported.
The transaction will equally dilute the interests of Zijin and Ivanhoe in the Kamoa project.
In March, members of Ivanhoe’s exploration team received the prestigious Thayer Lindsley Award from the Prospectors and Developers Association of Canada for the Kamoa copper discovery, recognised as 2014’s top international mineral discovery. Kamoa is the world’s largest undeveloped, high-grade copper deposit.