KAMOA COPPER: Modern Mining Exemplified in the Heart of Africa

Copper is commonly known as the king of ‘green metals’, and with the sizeable and urgent global shift towards decarbonisation, demand will most likely increase markedly in line with the transition towards clean energy and transportation technologies. “The move from a high carbon economy to a low carbon economy is effectively a shift to a ‘copper economy’ because of the important role that this metal plays in clean energy technologies,” Kamoa Copper asserts.

Uniquely positioned along the Central African Copperbelt, where substantial undeveloped gold, cobalt and high-grade copper deposits exist, the Democratic Republic of Congo plays host to some of the highest-grade copper reserves globally giving the country a central role in the energy transition as a critical supplier of this so-called green metal.

“Rooted in the heart of Africa, we are positioned to become one of the world’s largest copper producers,” Kamoa Copper sets out of the Kamoa-Kakula complex, a joint venture between Invanhoe mines, the Zijin Mining Group, the DRC government and Crystal River Global, which each owns stakes of 39.6%, 39.6%, 20% and 0.8% respectively. “Our newly-published independent Integrated Development Plan (2023 IDP) demonstrates the bright future and vast potential for the Democratic Republic of Congo and its people and outlines how Kamoa Copper, in partnership with local governments and communities, will become a world leader in the responsible supply of high-grade copper metal.”

BRIGHT FUTURE

The 2023 IDP encompasses a pre-feasibility study (PFS) for the Phase 3 and 4 expansions of the Kamoa Copper Mining Complex, which will result in a staged increase in nameplate production up to a total of 19.2 million tonnes per annum over a 33-year life. Second is a preliminary economic assessment (PEA) that envisions a further nine-year extension to the mine life of the Kamoa Copper Mining Complex to 43 years overall, maintaining production from the Phase 1 to 4 concentrators beyond 2060.

“This integrated development plan demonstrates the bright future and vast potential for the Democratic Republic of Congo and its people, which is ready to become a world leader in the responsible supply of vital electric metals required by governments around the world to enact policies to combat climate change,” said Robert Friedland, Executive Co-Chairman of Ivanhoe Mines. President Marna Cloete spoke of the prospect of Kamoa Copper Mining Complex becoming, “an example of how modern mining must be done, with an unwavering focus on transparency and environmental, social and governance best practices.

“The Democratic Republic of Congo is blessed with exceptional hydropower potential, world-class geology, and a young, vibrant population ready to enter the workforce as the next generation of accomplished engineers, geologists and skilled technicians.” Kamoa Copper has generated over 12,000 jobs from its operations and construction activities, with over 95% of those positions filled by Congolese nationals.

The Chairman of the Board of Directors of Kamoa Copper, Ben Munanga, also shared that the first two phases of development of the Kamoa Copper Mining Complex are powered entirely by 100% green and renewable energy, from the Mwadingusha hydroelectric plant, whose rehabilitation and modernisation were facilitated in 2021 by a partnership between the National Electricity Company (SNEL) and Kamoa Copper.

“We conduct IDPs like this to maximise and optimise stakeholder value by considering all of the resources and mineral inventory that we have on the property, relayed Riaan Vermeulen, MD of Kamoa Copper. “While operating Phase 1 and 2 and seeking to improve on operational efficiencies, we are progressing well with the major construction activities for the Phase 3 expansion,” he furthered. Expansion to 14.2 million tonnes per annum of processing capacity includes the ongoing construction of a new five-million-tonne-per-annum concentrator, set for completion in Q4 of 2024.

“Kamoa Copper is, too, continuing its excellent track record of local employment and training with the construction of the Kamoa Centre of Excellence,” Vermeulen said. “The Centre will create a sustainable and community-focused higher learning environment, offering international degrees and diplomas in the heart of the Lualaba province in the DRC, with an inaugural intake of 40 students.”

EXCEEDING EXPECTATIONS

Kamoa Copper produced its first copper on 25th May 2021, and it will be among the world’s lowest greenhouse gas emitters, per unit of metal produced, once it reaches a steady state of production. “Our overarching vision is to create one of the largest, lowest cost copper mining complexes in the world, and contribute to the sustainable transformation of the DRC and its people.

“We aim to pioneer a new standard for environmentally and socially responsible mining in the DRC and produce the green copper which will fuel low-carbon technological advancement.”

Straining right at the upper-end of its production guidance range of 290,000 to 340,000 tonnes, Kamoa Copper produced 333,497 tonnes of copper in 2022, a year-over-year increase of 215%. Approximately 7.1 million tonnes of ore, at an average feed grade of 5.5% copper, was also milled last year.

Copper production for this year is targeted even more ambitiously, at between 390,000 and 430,000 tonnes of copper in concentrate, following the anticipated completion of the debottlenecking program early in the second quarter of 2023. “The program will increase the combined processing capacity of Phase 1 and Phase 2 concentrator plants to approximately 9.2 million tonnes per annum,” the company explained, “and increase the rate of annualised production to 450,000 tonnes of copper in concentrate once completed.”

Production at the Kamoa-Kakula Copper Complex was principally behind the record annual profits reported by Ivanhoe for 2022 – $434m, compared with $45m for the previous year. Kamoa-Kakula itself saw a record revenue of $2.15bn in 2022, and income from the joint venture made up $405m of Invanhoe’s 2022 profit. Phase three of the 500,000 tonne-per-annum on-site expansion is currently well underway and due to be completed by late 2024, to include a direct-to-blister copper smelter and the refurbishment of the site’s hydroelectric facility.

“Phases 1 and 2 have allowed us to sustain 9.2 million tonnes per annum; we are well on track to take that production level up to 14.2 million by early 2025,” rounds off Vermeulen. “I am confident that we will be able to take this project even further, to 19.2 million tonnes per annum, once phase 4 has been successfully studied and commenced, to position the company as the world’s second largest copper mining complex.

“We will embrace our differences and create an organisational culture rooted in respect, engagement and inclusivity – where the sum is greater than the parts. In an environment that promotes development, health, safety and wellbeing, we set out to create positive change safely, responsibly and with integrity.”