Phase 3-4 Kamoa-Kakula expansion plans released

Plans for the third and fourth phase expansion of the Kamoa-Kakula copper complex in the Democratic Republic of Congo has been unveiled.

Ivanhoe Mines revealed the 2023 integrated development plan which include prefeasibility study (PFS) for the phases of the project and also included is a preliminary economic assessment (PEA) for a life-of-mine extension. The Kamoa-Kakula Copper Mine a joint venture between Ivanhoe Mines (39.6%), Zijin Mining Group (39.6%), Crystal River Global Limited (0.8%) and the Government of the Democratic Republic of Congo (20%) is a very large, near-surface, flat-lying, stratiform copper deposit with adjacent prospective exploration areas within the Central African Copperbelt, approximately 25 kilometres west of the town of Kolwezi and about 270 kilometres west of the provincial capital of Lubumbashi.

The complex produced 333,500 tonnes of copper in 2022, more than double its output a year earlier. The project is owned 39.6% by Ivanhoe, 39.6% by Zijin Mining, 0.8% by Crystal River Global, and the balance (20%) by the DRC government.

Kamoa-Kakula

Phase 3 expansion includes construction of a new 5 million t/y concentrator located at Kamoa. The replacement of turbine #5 at the hydroelectric power station is underway. The new equipment will supply an additional 178 MW of power to the national grid and provide electricity for Phase 3. A 500,000 t/y direct-to-blister flash copper smelter is also to be completed by the end of next year.

Upon completion in 2024, the phase projects copper production average to be average 620,000 t/y over 10 years at a cash cost of $1.22 per pound. Another nine years is added to mine life, bringing production to 2060 at least. The pre-production capex for Phase 3 is $3.04 billion. After the third phase of expansion, the Kamoa-Kakula project will have a $19.1 billion after-tax net present value at an 8% discount rate.

Phase 4 is planned for later this decade and will include another 5 million t/y concentrator, also at Kamoa. That will bring annual mineral processing capacity up to 19.2 million tonnes and maintain copper output at about 600,000 t/y for a further 10 years. A new tailings storage facility will also be brought online by 2040. Cost for Phase 4 is estimated at $1.55 billion. The after-tax NPV (8%) of Phase 4 will be $20.2 billion. By 2050, Ivanhoe intends to position Kamoa-Kakula as the world’s fourth-largest copper producer with costs in the lowest quartile.