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Ivanhoe Update On Kakula Copper Mine Construction Progress

Mining News - Published on Wed, 19 Jun 2019

Image Source: Ivanhoe
Robert Friedland and Yufeng “Miles” Sun, Co-Chairmen of Ivanhoe Mines, announced that excellent progress is being made in the construction of the Kakula Copper Mine – the stage one, 6 million tonne per annum operation on the tier-one Kamoa-Kakula Project in the Democratic Republic of Congo. Ivanhoe announced that China-based CITIC Metal agreed to invest an additional USD 459 million in Ivanhoe by way of a private placement at CAD 3.98 per share. Since that announcement, the pace of underground mine development has accelerated and the first access drives are approaching Kakula’s initial high-grade ore. In addition, Ivanhoe and its joint-venture partner Zijin Mining have commenced earthworks for the surface processing plant and have issued tenders for the long-lead mining and processing equipment. Initial copper concentrate production from the Kakula Mine currently is scheduled for the Q3 of 2021.

CITIC Metal’s USD 459 million investment will be its second major financing in less than a year, bringing its total investment in Ivanhoe to approximately USD 1 billion. The CITIC Metal investment is expected to close no later than September 7, 2019. On May 15, 2019, Zijin Mining exercised its anti-dilution rights, which will generate additional proceeds for Ivanhoe of CAD 67 million, to be received at the same time as the CITIC Metal funds.

The combined proceeds of more than USD 509 million from CITIC Metal and Zijin Mining positions Ivanhoe to fully finance its share of capital costs required to bring the Kakula Mine into commercial production. The initial, five-year, detailed mine design now has been finalized and production scheduling is in progress. The full, detailed mine design will be included in the independent definitive feasibility study that is expected to be published early next year.

Mr Friedland, said that "With the initial mine development of Kakula soon to be fully financed, we now are focused on rapidly advancing the construction of surface infrastructure and the processing plant, to match the accelerating pace of development of the underground mine workings and to transform Kakula into one of the world’s greatest copper mines. The shallow, thick, high-grade nature of the orebody will allow us to ramp up production quickly.”

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Posted By : Sanju Moirangthem on Wed, 19 Jun 2019
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