(Kitco News) - Ivanhoe Mines (TSX: IVN) today announced "extremely positive" findings of an independent integrated development plan (2023 IDP) for the world-leading Kamoa-Kakula Copper Complex.
The 2023 IDP consists of a pre-feasibility study (2023 PFS) for the Phase 3 and Phase 4 expansions of the Kamoa-Kakula Copper Complex over a 33-year mine life, as well as an updated preliminary economic assessment (2023 PEA) that includes a life-of-mine extension case to 42 years overall.
The company said that the Phase 3 expansion, to be completed in 2024, increases Kamoa-Kakula's annual copper production to a ten-year average of 620,000 tonnes of copper, at cash costs (C1) of $1.22/lb.
Importantly, Ivanhoe noted that the expansion to 19.2 Mtpa in PFS case yields an after-tax NPV8% of $19.1 billion over a 33-year mine life, adding that the 42-year PEA life-of-mine extension case delivers a $20.2 billion after-tax NPV8%.
According to a company statement, Kamoa-Kakula to rank as the 4th largest copper producer globally in 2025, with lowest-quartile cash costs.
Ivanhoe also noted that mineral reserves tonnage increased by 101% to 472 million tonnes, adding that Kamoa-Kakula generates powerful cash flow to fund expansions, with an average annual EBITDA of over $3 billion for the first 10 years.
"The world-class economic results confirm Kamoa-Kakula's position as one of the world's largest, ultra-green and lowest-cost producers, which will be a world leader in the empowerment of women and the development of Congolese youth for many decades to come," the company said in its press release.
"Ivanhoe Mines is ready to take the next step in becoming the world's next major, diversified mining company … and Kamoa-Kakula will become the model for future mines as we embark on the next generation of tier-one developments at our Platreef and Kipushi projects," said Executive Co-Chairman Robert Friedland.
Ivanhoe Mines is a Canadian mining company focused on advancing its three principal projects in Southern Africa; the expansion of the Kamoa-Kakula Copper Complex in the DRC, the construction of the tier-one Platreef palladium-rhodium-platinum-nickel-copper-gold project in South Africa; and the restart of the historic ultra-high-grade Kipushi zinc-copper-germanium-silver mine, also in the DRC.
The Kamoa-Kakula Mining Complex is operated by Kamoa Copper, a joint venture between Ivanhoe Mines (39.6%), Zijin Mining Group (39.6%), Crystal River Global Limited (0.8%) and the DRC government (20%).
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