Zijin Mining has announced an independent comprehensive development plan for the Kamoa-Kakura copper mine in the Democratic Republic of the Congo (DRC), including a pre-feasibility study (" 2023 Pre-feasibility study ") and an updated version of the preliminary economic evaluation (" 2023 Preliminary Economic Evaluation ") within the service life of the project's Phase III and Phase IV expansion. According to the plan, Kamoa will accelerate to become the world's fourth largest copper producer and the continent's largest copper producer by 2025.
The comprehensive development plan highlights Kamoa's outstanding resource endowment and long service life, which will produce high-quality, low-carbon copper at low cost for a long time in this century. It also demonstrates the bright future and huge development potential of the DRC and its people where the project is located. Kamoa Copper will be the world's leading and responsible supplier of the new energy key metals that the world needs to fight climate change.
Building large copper mines that span generations
At present, the technical transformation and production expansion project of Kamoa Copper Mine has advanced beyond expectations. It is planned to carry out joint trial in April 2023, which will accelerate the achievement of the goal of the first stage of project construction and development, that is, the comprehensive design capacity of the first and second phase of the plant will be increased to 9.2 million tons/year, and the copper capacity will be increased to about 450,000 tons/year. With increasing production capacity, the project team estimates that the target target for producing copper concentrate in 2023 is approximately 390,000 to 430,000 tonnes.
The concentrate thickener of the first and second phase technical renovation project of the mine is about to be completed
According to Kamoa 2023 Prefeasibility study, the second phase of the mine will be the construction of three 5 million ton/year concentrator, which is scheduled to start production in the fourth quarter of 2024. The concentrator will be supplied from the existing mining area in Kasoko South and the new mining area under construction in Kamoa 1 and 2. The supporting smelter of Phase III will be the largest single series "one step copper process" copper smelter in the world and one of the largest copper smelters in Africa, capable of producing up to 500,000 tons of anode copper or crude copper containing more than 99% copper per year, and selling 650-800,000 tons of concentrated sulfuric acid as a by-product to the local market in the DRC.
When the third phase of the mine expansion is completed, average production will increase to about 620,000 tonnes per year over the next 10 years, making Kamoa the fourth largest copper mine in the world and the largest copper mine on the African continent. At market consensus prices, the project will achieve EBITDA of more than $3 billion per year, a significant increase over Phase I and II.
Forecast of the world's Top 10 Copper mines in 2025
It is planned that in 2030, after 5 years of stable operation of 14.2 million tons/year in phase III, the coal mine will start the 5 million tons/year concentrator expansion project in Phase III and Phase IV, which will increase the comprehensive processing capacity of the mine to 19.2 million tons/year and extend the project's annual output of 600,000 tons of copper for 10 years. Based on the pre-feasibility scenario, the project has an after-tax net present value (8% discount rate) of $19.1 billion over a 33-year service life based on a long-term copper price of $3.70 / lb.
The preliminary economic evaluation of Kamoa Copper Mine 2023 demonstrates the project's potential to extend mine life. Four new mining areas to the north of the project (Kamoa 3, 4, 5 and 6) can produce 4.8 million tonnes of copper concentrate, which is expected to extend mine life by 9 years to 42 years and maintain a combined capacity of up to 19.2 million tonnes/year. According to the preliminary economic evaluation plan, assuming the long-term copper price is $3.70 / lb, the after-tax net present value of the project (discount rate of 8%) is $20.2 billion.
Producing the world's 'lowest carbon copper'
The Kamoa-Kakura mine is actively developing clean energy and advancing electrified mining operations. The subsequent expansion of the project will develop clean renewable hydropower in cooperation with SNEL, the state-owned power company of the Democratic Republic of Congo (DRC), based on the first and second phases of the project. Currently, the project is undergoing the upgrading of the No. 5 turbine unit of Yingga Phase II hydropower Station. Upon completion in the fourth quarter of 2024, an additional 178 MW of renewable hydropower will be generated to power the Phase III selection plant and supporting smelter.
Built to International Finance Corporation (IFC) emissions standards, the reduction in freight traffic when fully completed, coupled with the hydroelectric function of the smelter, is expected to have a significant positive impact on the operational carbon footprint per unit of copper, contributing to one of the lowest greenhouse gas emissions per unit of copper in the world.
Kamoa Copper is also looking into installing additional backup power, including generators and renewable sources of solar and hydroelectric power with battery storage, to enable the mine to operate in the event of a disruption to the grid.
Community prosperity through common development
Kamoa has created more than 12,000 direct jobs, 95% of them for DRC people. The Sustainable Livelihood Program has successfully fostered local enterprises and industrial chains run by the community, including stabilizing agricultural production, improving water supply, promoting early childhood education and gender equality, contributing to the achievement of the United Nations Sustainable Development Goals.
Kamoa employees distribute citrus saplings to Kaponda residents as part of the Sustainable Livelihood Program
The Kamoa Integrated Development Programme includes detailed revisions and updates to the mine's Environmental and Social Impact Assessment (ESIA) and Environmental and Social Management Plan (ESMP) to assess, mitigate and manage potential environmental and social risks arising from the Phase III expansion of the project.
In order to achieve the objective of promoting local employment, the Kamoa Copper Mine has established a world-class school to ensure that the local community, including women, have access to training, development and employment opportunities. The Kamoa Centre of Excellence for Development, currently under construction on the outskirts of Coluvezi, will establish a community-centred sustainable learning environment with world class facilities. The first phase, to be enrolled in 2023, will offer mining-related courses to about 40 students.
Kamoa plans to continue to increase local education and health support, and to provide drinking water to more than 90% of the population affected by the project; The project is also implementing a five-year supervised community development programme that will provide a total of US $8.6 million for education, health care, agriculture, drinking water supply and other initiatives.
