Tag Archives: Kakula

Latest Kamoa-Kakula copper studies reaffirm project’s world-class status

The latest economic studies on Ivanhoe Mines and Zijin Mining Group’s majority-owned Kamoa-Kakula project in the Democratic Republic of Congo have indicated the asset could become the world’s second largest copper mining complex.

First production at Kamoa-Kakula is less than a year away, but the project partners have continued with a series of economic studies that emphasise the world-class nature of the orebodies within their control.

The headline maker is the results of a preliminary economic assessment that has evaluated an integrated, multi-staged development to achieve a 19 Mt/y production rate at the mine, with peak annual copper production of more than 800,000 t.

At the same time, a prefeasibility study (PFS) has been carried out to look at mining 1.6 Mt/y from the Kansoko mine, in addition to 6 Mt/y already planned to be mined from Kakula, to fill a 7.6 Mt/y processing plant at Kakula.

A definitive feasibility study (DFS) has also evaluated the stage-one, 6 Mt/y plan at Kakula, which is currently being constructed and is less than a year away from producing first copper, according to Ivanhoe Co-Chair, Robert Friedland.

While the operation looks to have the scale of a world-class asset, it will also have top ranking ‘green’ credentials, according to Friedland.

“The Kakula mine has been designed to produce the world’s most environmentally-responsible copper, which is crucial for today’s new generation of environmentally- and socially-focused investors,” he said.

“Zijin shares our commitment to build the new mines at Kamoa-Kakula to industry-leading standards in terms of resource efficiency, water and energy usage, and minimising emissions. We are blessed with ultra-high copper grades in thick, shallow and flat-lying orebodies – allowing for large-scale, highly-productive, mechanised underground mining operations; and access to abundant clean, sustainable hydro electricity to power our mines – providing us with a distinct advantage in our goal to become the world’s ‘greenest’ copper miner and be among the world’s lowest greenhouse gas emitters per unit of copper produced.”

The project recently retained Hatch of Mississauga, Canada, to independently audit the greenhouse gas intensity metrics for the copper that will be produced at Kamoa-Kakula.

The Kamoa-Kakula Integrated Development Plan (IDP) 2020, as the companies refer to it, builds on the results of the previous studies announced in February 2019.

DFS to 6 Mt/y

The new DFS incorporates the advancement of development and construction activities to date, and has once again confirmed the outstanding economics of the first phase Kakula Mine, Ivanhoe said.

It evaluates the development of a stage one, 6 Mtpa underground mine and surface processing complex at the Kakula deposit with a capacity of 7.6 Mt/y, built in two modules of 3.8 Mt/y, with the first already under advanced construction (see photo). It comes with an internal rate of return of 77% and project payback period of 2.3 years.

The first module of 3.8 Mt/y commences production in the September quarter of 2021, and the second in the March quarter of 2023. The life-of-mine production scenario provides for 110 Mt to be mined at an average grade of 5.22% Cu, producing 8.5 Mt of high-grade copper concentrate.

The Kakula 2020 DFS mine access is via twin declines on the north side and a single decline on the south side of the deposit. One of the north declines will serve as the primary mine access, while the other decline is for the conveyor haulage system, which was recently commissioned.

The primary ore handling system will include a perimeter conveyor system connected to truck load-out points along the north side of the deposit. The perimeter conveyor system will terminate at the main conveyor decline.

The mining method for the Kakula deposit is primarily drift-and-fill using paste backfill (around 99%); with the exception of a room-and-pillar area close to the north declines, which will be mined in the early years of production. The paste backfill system will use a paste plant located on surface connected to a distribution system that includes a surface pipe network connected to bore holes located at each connection drive on the north side of the orebody, the company says.

The Kakula concentrator design incorporates a run-of-mine stockpile, followed by primary cone crushers operating in closed circuit with vibrating screens to produce 100% passing 50 mm material that is stockpiled.

At the end of August, the project’s pre-production surface ore stockpiles totalled an estimated 671,000 t grading 3.36% Cu, including 116,000 t of high-grade ore grading 6.08% Cu.

The crushed ore is fed to the high pressure grinding rolls operating in closed circuit with wet screening, at a product size of 80% (P80) passing 4.5 mm, which is gravity fed to the milling circuit.

The milling circuit incorporates two stages of ball milling in series in closed circuit with cyclone clusters for further size reduction and classification to a target grind size of 80% passing 53 micrometres (µm).

The milled slurry is pumped to the rougher and scavenger flotation circuit where the high-grade, or fast-floating rougher concentrate, and medium-grade, or slow-floating scavenger concentrate, are separated for further upgrading. The rougher concentrate is upgraded in the low entrainment high-grade cleaner stage to produce a high-grade concentrate.

The medium-grade or scavenger concentrate together with the tailings from the high-grade cleaner stage and the recycled scavenger recleaner tailings are combined and further upgraded in the scavenger cleaner circuit. The concentrate produced from the scavenger cleaner circuit, representing roughly 12% of the mill feed, is re-ground to a P80 of 10 µm prior to final cleaning in the low entrainment scavenger recleaner stage.

The scavenger recleaner concentrate is then combined with the high-grade cleaner concentrate to form final concentrate. The final concentrate is then thickened and pumped to the concentrate filter. Final filtered concentrate is then bagged for shipment to market.

The scavenger tailings and scavenger cleaner tailings are combined and thickened prior to being pumped to the backfill plant and/or to the tailings storage facility. Backfill will use approximately half of the tailings, with the remaining amount pumped to the tailings storage facility.

Based on extensive test work, the concentrator is expected to achieve an overall recovery of 85%, producing a very high-grade concentrate grading 57% copper. Kakula also benefits from having very low deleterious elements, including arsenic levels of 0.02%.

7.6 Mt/y PFS

The PFS evaluating mining 1.6 Mt/y from the Kansoko mine envisages an average annual production rate of 331,000 t of copper at a total cash cost of $1.23/lb copper for the first 10 years of operations, and annual copper production of up to 427,000 t by year four. This comes with an internal rate of return of 69% and project payback period of 2.5 years, according to Ivanhoe.

Development would see Kakula-Kansoko benefit from an ultra-high, average feed grade of 6.2% Cu over the first five years of operations, and 4.5% Cu on average over a 37-year mine life.

There are currently two mining crews at Kansoko, in addition to the 10 mining crews (three owner crews and seven contractor crews) currently at Kakula, with the ability to increase this number to fast-track the development of Kansoko, Ivanhoe said.

19 Mt/y option

The Kamoa-Kakula 2020 PEA presents initial production from Kakula at a rate of 6 Mt/y, followed by subsequent, separate underground mining operations at the nearby Kansoko, Kakula West and Kamoa North mines, along with the construction of a 1 Mt/y of concentrate direct-to-blister smelter. The smelter section of the study saw China Nerin Engineering act as the main engineering consultant with Outotec providing design and costing for propriety equipment.

The Kamoa North Area comprises five separate mines that will be developed as resources are mined out elsewhere to maintain the production rate at up to 19 Mt/y, with an overall life in excess of 40 years, Ivanhoe says.

For this integrated 19 Mt/y option, the PEA envisages $700 million in remaining initial capital costs, with future expansion at Kansoko, Kakula West and Kamoa North funded by cash flows from the Kakula mine, resulting in an internal rate of return of 56.2% and a payback period of 3.6 years.

This shows the potential for average annual production of 501,000 t of copper at a total cash cost of $1.07/lb copper during the first 10 years of operations and production of 805,000 t/y of copper by year eight, Ivanhoe said.

“At this future production rate, Kamoa-Kakula would rank as the world’s second largest copper mine,” the company said.

Kamoa-Kakula copper project continues to track ahead of schedule, Ivanhoe says

Ivanhoe Mines Co-Chair Robert Friedland has hinted in its latest announcement that the Kamoa-Kakula project, in the Democratic Republic of the Congo, could produce first copper ahead of its planned September quarter 2021 schedule.

Friedland and fellow Co-Chair, Yufeng “Miles” Sun, said underground development at the Kakula copper mine continued to exceed expectations with more than 18.7 km now complete – 5.5 km ahead of schedule.

In July, the mining team achieved 1,638 m of underground development, which was 257 m ahead of plan for the month.

Ivanhoe says the Kamoa-Kakula project is unique as it combines ultra-high copper grades in thick, shallow and relatively flat-lying deposits – allowing for large-scale, highly-productive, mechanised underground mining operations.

Initial production at the Kakula mine is scheduled for the September quarter of 2021, with Kakula projected to be the world’s highest-grade major copper mine with an initial mining rate of 3.8 Mt/y at an estimated average feed grade in excess of 6% Cu over the first five years of operation.

The mine will have one of the most favourable environmental footprints of any tier-one copper mine, according to Ivanhoe. “It will be powered by clean, renewable hydroelectricity and be among the world’s lowest greenhouse gas emitters per unit of copper produced,” the company said. “It also will have a relatively tiny surface footprint as approximately 55% of the mine’s tailings will be pumped back into underground workings.” The latter is through a paste backfill plant that Beijing-based CITIC Construction is constructing.

The majority of the development headings at the Kakula mine currently are traversing medium-grade sections of the orebody, with average grades ranging between 3-5% copper. Several development headings are in higher-grade zones averaging between 5-8% copper, and this ore is being placed on a dedicated, high-grade surface stockpile at Kakula North that currently totals some 116,000 t grading an estimated 6.08% Cu. The lower-grade surface stockpiles at Kakula North, Kakula South and Kansoko together contain an additional 446,000 t grading an estimated 2.73% Cu.

As Kakula’s underground development progresses over the next few months, most of the working areas are expected to transition into the higher-grade ore zones near the centre of the deposit that have copper grades approximately 5-8%, Ivanhoe said.

Meanwhile, the high-capacity ore conveyor system at the Kakula North declines, which has a capacity of 2,000 t/h, is undergoing final commissioning and is expected to begin continuous operations shortly. Once this happens, the ore mined in the northern portion of the Kakula mine will be combined and placed on a blended surface stockpile. The Kakula South and Kansoko declines are not equipped with conveyor systems; as such, the ore mined from these deposits will continue to be placed on separate surface stockpiles, based on copper grades.

More than 300 truckloads, consisting mainly of structural steel and equipment for Kakula’s initial 3.8 Mt/y processing plant, are expected to arrive at the mine site before the end of August. Fabrication of the plant’s largest components – two ball mills, each measuring 9.75 m long and 6.1 m in diameter – has been completed at CITIC Heavy Industries’ factory in Luoyang, China, and the third and final shipment of ball mill components is expected to be on site by the end of September.

“The construction team at Kakula, led by Mark Farren, Kamoa Copper’s CEO, has done a fantastic job of keeping the project moving ahead at a rapid pace despite the logistical challenges posed by COVID-19,” Friedland said. “With each passing month, we are getting increasingly confident that we could be producing copper at Kakula ahead of schedule.

“We’re in a good place at the moment, with the vast majority of the major equipment needed to build the mine and processing plant already fabricated, and either at site, or en route to site. Full credit goes to our entire team for implementing and adhering to early and extraordinary measures to safeguard our workforce and mitigate the impact of COVID-19 on the mine development and construction operations.”

The Kamoa-Kakula copper project is a joint venture between Ivanhoe Mines (39.6%), Zijin Mining Group (39.6%), Crystal River Global Limited (0.8%) and the DRC government (20%).

The independent Kakula definitive feasibility study (DFS) and an updated Integrated Development Plan (IDP) for the entire Kamoa-Kakula mining complex is expected to be finalised shortly, Ivanhoe said. The IDP will include details on the planned expansion phases for the greater Kamoa-Kakula mining complex, incorporating updates for mineral resources, production rates and economic analysis.

Basic engineering design and costing for Kamoa-Kakula’s planned Phase 2 expansion, taking production from 3.8 Mt/y to 7.6 Mt/y, is also complete. The scope of facilities for Phase 2 includes underground expansion at the Kakula mine to reach an annual production rate of 6 Mt/y, the expansion of mining operations at the Kansoko mine to a steady state 1.6 Mt/y, a second 3.8 Mt/y concentrator plant at Kakula, as well as associated surface infrastructure to support the expansion at the various sites.

TLT-Turbo Africa to bring fresh air to Kamoa-Kakula copper project

TLT-Turbo Africa has been awarded the contract for the supply and installation of a turnkey solution for underground ventilation and fumes extraction at the Ivanhoe Mines’ majority-owned Kamoa-Kakula copper project, some 25 km outside of Kolwezi in the Democratic Republic of Congo.

The contract was awarded by Kamoa Copper SA, which forms part of the project, a joint venture between Ivanhoe, Zijin Mining Group and the Government of the DRC.

TLT-Turbo Africa is designing, manufacturing and supplying a Bifurcated Axial Flow Fan Station for the extraction of mine fumes as well as auxiliary and booster fans for Kamoa’s underground operation, it said. The company will also oversee the installation of the fans and provide assistance with commissioning. The project is the first of many of strategic importance within the Sub Saharan Africa region that the company is involved in, TLT-Turbo said.

The contract was secured in October, with commissioning due to begin in July. TLT-Turbo Africa was appointed by DRA Projects, which is handling engineering, procurement, and construction management (EPCM) on the project, the company said.

Kamoa Copper SA will develop the new copper mine, which is expected to yield an estimated 6 Mt/y in its first phase alone. The Kakula deposit has been independently ranked as the world’s largest, undeveloped, high-yield, high-grade copper discovery, according to DRA, with a resource measuring 174 Mt at an average grade of 5.62% Cu.

According to TLT-Turbo’s Madeleine Pretorius, the project presents unique challenges from a logistical point of view. The site is remote, and it involves multiple border crossings and often poor road conditions. “This means complicated logistic solutions. TLT-Turbo has the benefit of a broad suite of options to minimise the need for abnormal or complex loads,” she said.

The TLT-Turbo Africa offering and approach positions them as a preferred supplier for ventilation solutions in challenging locations, according to Pretorius. “We provide an energy-efficient solution where power costs are high, and availability can be erratic. Our product is designed for long-term reliability and durability, with simple maintenance requirements and minimal downtime, which is critical for our remote clients.”

Mike van Oerle, Sales Manager at TLT-Turbo Africa, said the company’s approach will provide several benefits to Kamoa’s operations. This includes standardised equipment designed for simple installation and maintenance, which means TLT-Turbo’s fans can be maintained by the client on site, without the need for costly expert inspections. “TLT-Turbo is providing highly-efficient products to meet Kamoa’s interim ventilation and power requirements, with flexibility for future redeployment at an alternative ventilation position.”

Both van Oerle and Pretorius assert TLT-Turbo Africa’s delivery of the scope of work on this specific project speaks to the company’s wider capabilities and expertise. The collaboration with DRA has paved the way for excellence in service delivery, according to them. Pretorius said: “Working with an experienced EPCM company, such as DRA, our project team is able to draw on their unparalleled knowledge of the Sub Saharan African mining environment. Both teams work together to provide solutions that address the challenges experienced by our customers.”

Oerle concluded: “Our ability to understand our customers’ requirements led to a cost-effective solution, focusing on total cost of ownership. Combining this solution with an experienced projects execution team, means that we can ensure Kamoa receives high-quality products and on-time delivery.”

Ivanhoe Kamoa-Kakula studies reveal plan for world’s second largest copper mine

Ivanhoe Mines has released the prefeasibility study for an initial 6 Mt/y copper mine at the Kakula deposit in the Democratic Republic of Congo, in addition to an updated preliminary economic assessment (PEA) combining both Kakula and Kamoa into an 18 Mt/y operation.

The Kakula deposit is in the southerly portion of the Kamoa-Kakula project’s discovery area and would form the first of three deposits to be mined in the 18 Mt/y scenario.

For the 6 Mt/y Kakula option, the PFS envisages an average annual production rate of 291,000 t of copper at a mine-site cash cost of $0.46/ Ib ($1,014/t) of copper and total cash cost of $1.11/lb copper for the first 10 years of operations. Annual copper production would step up to 360,000 t by year four, the company said.

This option came with an initial capital cost of $1.1 billion and would result in an after-tax net present value (8% discount) of $5.4 billion factoring in an average copper price of $3.10/lb.

Ivanhoe said Kakula would benefit from an ultra-high, average feed grade of 6.8% Cu over the first five years of operations, and 5.5% Cu on average over a 25-year mine life.

Basic engineering for the project is already underway and is expected to be completed around mid-year, running in parallel with a definitive feasibility study expected to be completed around year-end, Ivanhoe said.

“Development of twin underground declines has been completed at Kakula, with ongoing underground development activities, including access drives and ventilation raises. In addition, a box cut for a ventilation decline on the southern side of the Kakula orebody is nearing completion,” the company added.

The updated Kamoa-Kakula 2019 PEA presents the alternative development option of a three-phase, sequential operation on Kamoa-Kakula’s copper deposits (pictured below).

Initial production would occur at a rate of 6 Mt/y from the Kakula mine, before increasing to 12 Mt/y with mill feed from the Kansoko mine. A third 6 Mt/y mine would then be developed at Kakula West, bringing the total production rate to 18 Mt/y.

“As resources at Kakula and Kansoko are mined, the PEA envisages that production would begin at several mines in the Kamoa North area to maintain 18 Mt/y throughput over a 37-year mine life,” Ivanhoe said.

For this option, the PEA envisages $1.1 billion in initial capital costs, with future expansion at the Kansoko Mine, Kakula West Mine and subsequent extensions funded by cash flows from the Kakula mine. This resulted in an after-tax NPV (8% discount) of $10 billion using the same long-term copper price of $3.10/Ib.

Under this approach, the PEA also includes the construction of a direct-to-blister flash copper smelter at the Kakula plant site with a capacity of 1 Mt/y of copper concentrate to be funded from internal cash flows. This would be completed in year five of operations, achieving significant savings in treatment charges and transportation costs, according to the company.

The 18 Mt/y scenario would deliver average annual production of 382,000 t of copper at a total cash cost of $0.93/lb copper during the first 10 years of operations and production of 740,000 t/y by year 12. “At this future production rate, Kamoa-Kakula would rank as the world’s second largest copper mine,” Ivanhoe said.

Robert Friedland, Co-Chairman of Ivanhoe Mines, was at the Mining Indaba event in Cape Town, South Africa to announce these results.

He said: “These studies clearly prove our long-standing conviction that Kamoa-Kakula is firmly on track to become one of the absolute greatest copper mining complexes in the world, helping to restore Katanga’s rightful position as the world’s largest copper producing region. This would not have happened without the extraordinary efforts of the Ivanhoe discovery team and our investment of more than $800 million in exploration and development.

“We now look forward to working with the new government of the DRC and the Congolese people to develop Kamoa-Kakula to its full potential, generating widely shared economic benefits that will help to uplift local communities, and provide skills training to help ensure that young Congolese can qualify for the thousands of meaningful direct and indirect jobs that will be created.”