The Kakula copper mine project is located in the Democratic Republic of Congo. (Credit: Ivanhoe Mines Ltd.)
Ivanhoe Mines Ltd announced the results of an independent definitive feasibility study (DFS) for the development of its huge Kamoa-Kakula Copper Project in the Democratic Republic of Congo. The DFS, together with results from an updated prefeasibility study (PFS), provide more evidence that Kamoa-Kakula has the potential to become the world’s second largest copper mine, with annual output of more than 800,000 tonnes.
In a press statement, Ivanhoe said the feasibility study is an independent verification by nine of the world’s top engineering firms of the robust economics generated by an initial 6.0 million tonne/year starter pit at Kakula where the expected ore feed grade is 6.6% copper. Mine site cash costs are forecast at US$0.48/lb in the first five years of production.
The PFS evaluates mining of 1.6 million tonnes annually from the nearby Kansoko mine, in addition to feed from Kakula that would fill a 7.6 million tonne/year processing plant at Kakula.
The 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, according to the co-Chairman Robert Friedland.
Kamoa-Kakula will advance in stages until it has four producing mines on site with combined output of 19 million tonnes annually. Ivanhoe shares eased 0.18% or $0.01 to $5.50 on volume of 890,030.
Ivanhoe is led by Singapore-based mine financier Robert Friedland, who holds a 17% interest in the company. CITIC Metal Co. Ltd., a subsidiary of the Chinese state-owned CITIC Group, recently agreed to invest an additional $612 million in Ivanhoe at $3.98 a share, raising its stake in Ivanhoe to 29.9% from just under 20%.
