Ivanhoe Mines Advances Copper Production at Kamoa-Kakula in the DRC

Ivanhoe Mines (TSX: IVN) is taking significant strides towards increasing copper production at its Kamoa-Kakula copper complex in the Democratic Republic of the Congo.

By focusing on liberating copper from the tailings stream, the company has explored various methods to economically recover additional copper units since 2022.

Recently, Ivanhoe Mines released the preliminary findings of a metallurgical study conducted by Canada’s Expert Process Solutions, a trusted collaborator with Kamoa-Kakula since the project’s inception.

This study aimed to improve the copper recovery rate by reprocessing the tailings stream from the Phase 1 and 2 concentrators.

Remarkably, the initial results revealed that nearly 65% of the contained copper could be recovered from the tailings stream, even with a feed grade of less than 1% copper.

The saleable concentrate generated from this process boasted a copper grade of approximately 40%, which could be further processed at the 500,000 tpa direct-to-blister flash copper smelter, currently in the construction phase.

By comparison, the copper concentrate grade from the Phase 1 and 2 concentrators stands at approximately 50%.

In light of these promising results, Ivanhoe Mines has entrusted DRA Global, a South Africa-based company with extensive experience working on the Kamoa-Kakula project, to design the construction of a stand-alone processing plant.

This facility will handle the entire tailings stream from the Phase 1 and 2 concentrators. DRA Global’s assessment revealed that the capital expenditure and operating costs associated with the plant’s construction and operation are highly favorable, indicating a sound economic outlook.

Throughout 2023, the copper recoveries from the Phase 1 and 2 concentrators have shown marked improvements, averaging 87.1% during H1 2023, with occasional highs of up to 90%.

Nevertheless, Ivanhoe Mines believes that further sustained enhancements in copper recoveries present a golden opportunity to generate additional revenue at Kamoa-Kakula.

According to Robert Friedland, founder and executive co-chairman of Ivanhoe Mines, the company is aiming for total copper recoveries in the mid-nineties from this breakthrough and other concurrent workstreams.

He emphasized the significance of this initiative, as the tailings at Kamoa-Kakula hold a higher grade of copper compared to most major copper mines globally.

Harnessing this copper would not only lead to increased revenue and cash flow but also significantly reduce the tailings footprint.

By capitalizing on this breakthrough and potential future improvements, Ivanhoe Mines envisions a production profile exceeding 700,000 tonnes per annum following the Phase 3 expansion.

This achievement would not only bolster the company’s financial standing but also contribute to meeting the increasing global demand for copper during the energy transition.

As Ivanhoe Mines continues to invest in innovative approaches and collaborations, the company’s market performance remains strong. Recently, its shares experienced a modest 1.0% increase in value, reflecting the confidence investors place in the company’s ongoing endeavors.

With a market capitalization of C$16.5 billion ($12.4bn), Ivanhoe Mines stands ready to shape a sustainable future in the copper mining industry.