Ivanhoe Mining announced that a portion of the proceeds from its recently completed $575 million 2.5% convertible senior bond issue will be used to accelerate the third phase of the Kamua-Kakula copper mine expansion in the Democratic Republic of the Congo.
Ivanhoe Mines said the rapid advancement of hydropower upgrades in the Democratic Republic of Congo is also a priority opportunity to ensure clean and renewable electricity is used in all subsequent Kamoa-Kakula expansion projects.
"The company will now consider further production increases at its Kamoa-Kakula joint venture and accelerate the expansion of its Phase III concentrator from 7.6 MMtpa to 11.4 MMtpa," Ivanhoe Co-Chairman Robert Friedland said in a media statement.
"Together with our partner Zijin Mining, we have accelerated the second phase of our expansion, which will start production in the third quarter of 2022, raising copper production to approximately 400,000 tonnes, or approximately 880 million LBS/year."
The third phase expansion will increase Kamoa-Kakula's copper production to about 530,000 tons, or about 1.2 billion pounds per year, Friedland said.
"Our company is on the verge of completing the long struggle to transform itself from an exploration and development company to a major diversified mining company," Friedland said.
It has been an extraordinary journey for Kamoa-Kakula and Platreef;
From exploration to joining the ranks of the world's largest producers of copper, platinum and nickel."
Currently, the Kamoa-Kakula phase I 38,000 tpa concentrator is nearing completion, and the phase II 38,000 tpa concentrator civil works are progressing rapidly.
At the same time, the phase II commissioning of the phase I ball mill and the concrete foundation construction of the second set of ball mill in the phase II concentrator are being carried out.
The Kamoa-Kakula mine is independently listed as the fourth-largest copper mine in the world by Wood Mackenzie.
With the completion of infrastructure projects on the property, the recently acquired funding will also be used to expand and accelerate the company's copper exploration program under the Western Frontier Exploration License, which is located near the Kamoa-Kakula mining license, Friedland said.
