Tag Archives: Kamoa

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.

Ivanhoe’s Kakula copper mine takes shape in the DRC

Development is speeding up at Ivanhoe Mines’ majority-owned Kamoa-Kakula copper project in the Democratic Republic of Congo, with the first access drives approaching Kakula’s initial high-grade ore and earthworks for the surface processing plant having now commenced, the Toronto listed company says.

Mining OEMs will be getting excited too, with tenders for long-lead mining and processing equipment now issued and orders expected to be placed shortly, Ivanhoe said.

In February, Ivanhoe unveiled a prefeasibility study for a 6 Mt/y mine at Kakula, which envisaged 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 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. In addition to this, the company unveiled an updated preliminary economic assessment combining both Kakula and Kamoa into an 18 Mt/y operation.

Shortly after this, various stakeholders advanced money for the project, getting Ivanhoe, as the operator, and Zijn Mining, as a partner, to the point where they were both able to fully fund their share of capital costs required to bring the mine into commercial production.

In the latest update on the project, Ivanhoe said “excellent progress” was being made on the construction of the 6 Mt/y Kakula copper mine. Initial copper concentrate production from the Kakula mine currently is scheduled for the September quarter of 2021, with the initial, five-year, detailed mine design now finalised and production scheduling in progress.

The full, detailed mine design will be included in the independent definitive feasibility study that is expected to be published early next year.

Approximately 2,500 employees and contractors now are working at the project as Ivanhoe advances construction of the project’s initial mine at the Kakula deposit.

A total of 647 m of underground development was completed last month, some 100 m more than achieved in April. Lower-grade development ore is being stockpiled on surface near the site of the concentrator plant, which will be used for plant commissioning.

“Mine access drives 1 and 2 (interconnected, parallel tunnels that will provide access to ore zones) are approximately 200 m from Kakula’s initial high-grade mining area, and these priority drives are expected to intersect the higher-grade ore in late July or early August this year,” Ivanhoe said.

The underground development work at Kakula is being performed by mining crews operating large-capacity, semi-autonomous mining equipment, such as jumbo drilling rigs and 50-t trucks (shown above).

The Kakula mine access is via twin declines on the northern side (which have been completed) and a single decline on the south side of the deposit (under development). One of the northern declines will be the mine’s primary access way, while the other will be for the ore conveyor haulage system. The southern ventilation decline will serve as a secondary access and will facilitate the acceleration of critical, early mine development.

From the bottom of the northern and southern declines, a pair of perimeter drifts will be driven to the east and west extremities of the deposit and will serve as the primary accesses to the production areas. These drifts also will be used as the primary intake and exhaust ventilation circuits and will connect with the intake and exhaust ventilation shafts. Underground access to the first raise bore ventilation shaft has been reached, Ivanhoe said. The pilot hole for the 177-m raise bore has been completed, and reaming of the 5.5-m diameter ventilation shaft is expected to be completed next month, according to the company.

The primary ore handling system will include perimeter conveyor drifts and load-out points along the north side of the deposit. The perimeter conveyor drifts will terminate at the main conveyor decline. Connection drifts between the north and south perimeter drifts will provide access and ventilation to the planned mining areas.

Around 99% of the deposit will be mined using the drift-and-fill method, which was chosen to maximise the overall extraction of Kakula ore, Ivanhoe said.

The tailings will flow through a series of cyclones at the backfill plant, and approximately 55% of the tailings will be sent back underground into the mined-out workings as paste backfill. The remaining 45% of the tailings will be pumped to a small tailings storage facility that is being designed by a team of international engineers to meet global best practices for safety, Ivanhoe said.

“The detailed design for the truck-tipping area, where underground ore will feed onto the conveyor system for transportation to surface, and the conveyor system for the main declines, has been completed and component manufacture is underway,” the company added.

Three underground mining crews are working at Kakula. Once Ventilation Shaft 1 is completed and fans have been installed, an additional three crews will be mobilised to accelerate mine development, which is scheduled for October 2019.

Development of an additional access and ventilation decline on the southern side of the Kakula orebody is progressing well and has advanced more than 200 m, Ivanhoe noted. A surface piling rig machine has been mobilised to prepare for the raise bore civil construction for Ventilation Shaft 2.

The DRA Global detailed engineering work on the project includes the engineering and design associated with all underground mining infrastructure, the concentrator plant and all supporting surface infrastructure. This engineering work is running in parallel with an independent definitive feasibility study that is expected to be completed early next year.

“An agreed, detailed budget, and construction and implementation plan is being finalised with Ivanhoe’s joint-venture partner Zijin Mining,” Ivanhoe said. “The project also will be further optimised and adjusted based on the development progress of the project and on the results of the definitive feasibility study.”

On May 22, the project’s construction team commenced breaking ground for the surface processing plant, marking the start of the concentrator construction. The Kakula concentrator will be constructed in a phased approach with two 3 Mt/y modules, as the mining operations ramp up to a full ore-throughput rate of 6 Mt/y. Kakula is expected to produce a very-high-grade copper concentrate in excess of 55% copper, with extremely low arsenic levels, according to Ivanhoe.

The processing plant flow diagrams, process control descriptions, and processing equipment lists have been completed and piping and instrumentation diagrams are being finalised, the company noted. “Tenders for long-lead items such as cone crushers, ball mills, thickeners, high-pressure grinding rolls, flotation cells, regrind mills, concentrate filter and low entrainment flotation cells, have been issued to the market and bids have been received. The Kamoa-Kakula project team in conjunction with DRA is in the process of adjudicating the tenders. Orders are expected to be placed shortly.”

In addition, the tender for the plant civil works has been issued. All bids have been received and are under adjudication. Tenders for smaller equipment for the processing plant such as agitators and samplers have been issued to the market.

Earlier this month, the Kamoa-Kakula project achieved a total of more than 14.5 million work hours free of lost-time injuries – it has been approximately seven years since the last lost-time injury occurred at the project. “This outstanding achievement reflects the dedication to a safety-focused culture of the entire Kamoa-Kakula exploration and development teams,” Ivanhoe said.

Ivanhoe also provided an update on the upgrading work at the Mwadingusha hydropower plant, which it said was progressing well. This project is important to the Kamoa-Kakula project as it is providing clean hydro-electricity to the site from the national grid.

“Construction activities at the Mwadingusha hydropower station are progressing well and Ivanhoe expects that the full upgrading and modernisation of the hydropower plant and its six generators to be completed in late 2020,” Ivanhoe said. “This upgrading work is pursuant to an agreement with the DRC’s state-owned power company, La Société Nationale d’Electricité (SNEL), and is in exchange for a guaranteed 100 MW of electricity – more than enough power for the Kakula mine. The Kamoa-Kakula project has been receiving hydroelectric-generated power from the national grid since late 2016.”

“This installation of modern power generating equipment at Mwadingusha is an important step in helping to secure long-term, sustainable and clean electricity for the Congolese people and for the development of the Kakula mine.”

The upgrading work at Mwadingusha is being conducted by engineering firm Stucky of Lausanne, Switzerland, under the direction of Ivanhoe and Zijin Mining, in conjunction with SNEL.

Work is underway on a 220-kV electrical substation at the Kakula mine that will allow the mine and processing plant to be fully powered from the national power grid. Two new Sumec generators also have been installed at Kakula to provide power to the mine in the event of any power interruptions in the national grid.

DRA Global moves from PFS to basic engineering at Kakula copper project

DRA Global has been awarded the contract for basic engineering services on the Kakula mine portion of the wider Kamoa-Kakula project in the Democratic Republic of Congo.

The contract scope includes the basic engineering and design associated with all underground mining infrastructure, the concentrator plant and all supporting surface infrastructure.

Kamoa Copper SA, a joint venture between Ivanhoe Mines, Zijin Mining Group and the Government of the Democratic Republic of Congo, 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.

DRA’s project delivery relationship with Ivanhoe Mines started on the high-grade platinum-group metals, nickel and copper Platreef project in South Africa. “It was on this project that DRA demonstrated its experienced capability in project delivery which proved to be a key differentiator for the organisation on Kakula,” DRA said.

DRA was contracted to complete the prefeasibility study (PFS) for Kamoa Copper SA, in 2017. In October 2018, DRA was further awarded the contract to deliver a complete basic engineering package. Work began in October and is estimated to conclude by mid-2019.

In addition to the basic engineering, DRA offers continued support on the early works, which includes equipping the main declines with dewatering and conveyor systems, ventilation shafts and associated surface infrastructure.

Alistair Hodgkinson, DRA Executive Vice President, Projects, said: “The team working on this project has gone above and beyond to meet deadlines and exceed client expectations ultimately to ensure that this signature project starts producing as soon as possible.”

Earlier this month, Ivanhoe Mines revealed the prefeasibility study for an initial 6 Mt/y copper mine at Kakula, in addition to an updated preliminary economic assessment combining both Kakula and Kamoa into an 18 Mt/y operation.