- Write by:
-
Tuesday, September 22, 2020 - 11:21:39 AM
-
702 Visit
-
Print
Mining News Pro - Ivanhoe Mines is accelerating its Kamoa-Kakula expansion in the Democratic Republic of Congo to prepare for an expected surge in copper demand that will outstrip supply.
The expansion of Kakula processing plant from 3.8-million tonnes a year to 7.6-million tonnes a year would be brought forward from the first quarter of 2023 to the second quarter of 2022, the company announced on Monday.
In order to accelerate, the Kamoa-Kakula joint venture would order long-lead items with a total commitment value of $100-million within the coming weeks, of which an estimated $25-million would be spent this year.
"There are many smart people in the mining industry who strongly believe that copper is quickly approaching a supply and demand divergence; where the amount of copper being produced globally will be far outstripped by demand," said co-chairperson Robert Friedland. "As such, we want to ensure that the Kamoa-Kakula operation reaches its near-term production potential as expeditiously as possible, while also maintaining our strong balance sheet."
"Getting into the queue now for the critical long-lead-time items, such as the ball mills, costs very little up-front money and enhances our flexibility to quickly move ahead on the first of multiple planned expansions."
A recent prefeasibility study for the expanded 7.6-million-tonne-a-year mining operation - sourcing ore from both the Kakula and Kansoko mines - outlines an after-tax net present value, at a 6% discount, of $6.6-billion and an internal rate of return of 69% over a 37-year mine life, as well as payback of 2.5 years.
The economic model assumed a copper price of $3.10/lb, but Friedland pointed out that at least one major global investment bank was forecasting prices ranging from $3.20/lb to $3.60/lb over the next six to 12 months, based on its view that a supply deficit would form in 2021.
Ivanhoe further reported that construction of Kakula`s initial 3.8-million-tonne-a-year processing plant was well under way, with the remaining long-lead items already delivered to site, with the exception of the transformers, which were expected in October.
Kakula is projected to be the world`s highest-grade major copper mine with an estimated average ore feed grade of 6.6% copper over the first five years of operation, and 6.2% copper over the first 10 years.
Short Link:
https://www.miningnews.ir/En/News/602773
Barrick Gold Corp.’s chief executive officer says the gold miner will continue to host virtual-only annual general ...
China’s copper producers are planning to export up to 100,000 metric tons of metal, the largest volume in 12 years, ...
A takeover of Anglo American Plc would need to be pitched at more than £30 ($37.6) per share, a higher price than BHP ...
Barrick Gold is not interested in bidding for Anglo American, which last week received a $39 billion takeover offer from ...
BHP Group can’t cherry pick Anglo American assets without paying a hefty premium, Anglo investors told Reuters, ...
Anglo American faced calls from shareholders on Monday to detail plans for improving its value in order to fend off ...
Copper slipped after initially extending gains above $10,200 a ton as traders turned their attention to demand ...
Glencore expects profit at its trading division this year to be at the top end of its long-term annual guidance, in an ...
Top copper producer Codelco reported a decline in quarterly output due to lower quality ore at its aging Chilean mines — ...
No comments have been posted yet ...