Tenke Mining has completed the feasibility study for the first phase of production at the Tenke Fungurume copper/cobalt project in Katanga Province, DRC. The results of the feasibility study and environmental and social impact assessment (ESIA) have defined initial mine production of 115,000 t/y of copper cathode and 8,000 t/y of cobalt. Site infrastructure and process facility layouts have been designed contemplating significant future potential expansions.
The project is being developed by Tenke Fungurume Mining, which is owned 24.75% by Tenke Mining, 57.75% by Phelps Dodge and 17.5% by Gecamines. The feasibility study has been prepared by Tenke’s operating partner, Phelps Dodge, with the study authored by GRD Minproc. The ore reserve assessment was conducted by Phelps Dodge along with Independent Mining Consultants. Phelps Dodge has conducted the mine planning. Pilot plant process testwork has been conducted at Hazen Research in Colorado. An ESIA and community consultations have proceeded in parallel under the primary direction of Golder Associates, who have also prepared tailings management facility designs. Several NGOs have contributed to baseline studies, social impact assessment, community consultation and implementation of social programmes.
The 40 year mine plan is based on first developing the Kwatebala, Fwaulu and Goma deposits. Proven/probable ore reserves for these three areas are 103 Mt at 2.1% Cu and 0.3% Co (proven 22 Mt at 2.2% Cu and 0.30% Co, probable 81 Mt at 2.1% Cu and 0.31% Co). The feasibility study is based on around 19 years of fresh ore processing followed by 21 years of lower-grade stockpile feed. During the first ten years, 25.5 Mt of leachable oxide ore is to be processed grading 4.57% Cu and 0.37% Co. The overall strip ratio is 3.1:1.
The mining method will be open pit, using conventional methods in waste and a continuous miner in ore to maximize operating efficiencies and to minimize dilution of the high-grade material. Haulage will be by articulated 45 t trucks.
Measured and indicated resources for the Tenke Fungurume concessions are 235 Mt at 3.01% Cu and 0.31% Co (Measured 126 Mt at 3.44% Cu and 0.33% Co and indicated 109 Mt at 2.52% Cu and 0.28% Co), with inferred resources providing an additional 265 Mt of 2.6% Cu and 0.19% Co. Tenke intends to update the concession resource estimate prior to mid-2007 to incorporate Phelps Dodge drilling that has occurred since early 2006.
The feasibility study contains extensive onsite and offsite infrastructure improvements. Onsite infrastructure will include a large construction camp and permanent housing and support facilities for mine employees and the operations. Infrastructure has been designed and located contemplating significant future potential expansions. For initial operations, extensive use is being made of existing refurbished Tenke Fungurume infrastructure, including housing, water and power supply, airstrip, office, warehousing and maintenance facilities.
During construction, the Tenke project will provide employment for some 2,000 construction workers. Currently, Tenke Fungurume employees and contractor staffing on the project exceeds 1,000. During the initial phase of operations, about 1,000 Tenke Fungurume full-time employees are expected.
The feasibility study contemplates a 23 month overall project schedule to fast track development. Detailed engineering commenced in August 2006, major long delivery items such as the acid plant and grinding mill were ordered in November 2006, and significant road building and basic infrastructure development were accomplished in the last half of 2006. Major civil works have now commenced at the plant site, and the largest piece of mine equipment is already on site. Full production of copper is scheduled to occur as early as the fourth quarter of 2008 with full cobalt production scheduled to occur as early as the end of the first quarter of 2009.