Cost of Ivanhoe’s giant copper project in Congo hits $1.3 billion

Canada’s Ivanhoe Mines (TSX:IVN) said Friday that initial
capital costs for its Kakula copper mine in the Democratic Republic
of Congo (DRC) is now estimated at $1.3 billion, or 18% more than
previously pinned down.

The fresh figure, which includes expanded plant capacity,
additional mining fleets and pre-production ore stockpile, will
allow the company to begin production at the mine in the third
quarter of 2021,
Ivanhoe said
.

Fresh figure includes expanded plant capacity, additional mining
fleets and pre-production ore stockpile.

Capacity of Kakula’s processing plant modules increased by 26%
in the three months to Sep. 30, from 3 Mtpa to 3.8 Mtpa,
significantly boosting projected early-stage copper production, the
Toronto-based miner noted.

Billionaire Robert Friedland’s company has been working on
Kamoa-Kakula for ten years. In 2015, China’s Zijin Mining Group
got on board, becoming Ivanhoe’s partner in the project. Citic
Metal, another Chinese firm, followed suit last year,
becoming Ivanhoe’s
largest shareholder
.

Friedland, who made his fortune from the Voisey’s Bay nickel
project in Canada in the 1990s, has repeatedly stated that
Kamoa-Kakula has the potential to become the world’s
second-largest copper mine.

Once fully developed, the mining complex could produce 382,000
tonnes of copper a year during the first 10 years, climbing to

700,000 tonnes of copper after 12 years of operations
.

Source:
Wood Mackenzie (based on public disclosure; the Kakula 2019 PFS has
not been reviewed by Wood Mackenzie).

Analysts also believe the giant mine could restore the DRC’s
historical position as one of the world’s top copper producing
countries.

Kakula would be the first of of at least three mines planned for
the Kamoa-Kakula copper complex,

Source: FS – Mining B.
Cost of Ivanhoe’s giant copper project in Congo hits .3 billion



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