MMG commits to $600m DRC cobalt expansion

Base metals miner MMG has approved a $500-million to $600-million expansion of its Kinsevere operation in the Democratic Republic of Congo (DRC), extending the mine life for at least another 13 years.

The Kinsevere expansion project will bring yearly production of copper cathode up to 80 000 t and between 4 000 t and 6 000 6 of cobalt in cobalt hydroxide.

Construction will start in 2022 with first cobalt production is expected in 2023.

First copper cathode production from the sulphide orebody is expected in 2024 with the mine to continue production of copper cathode from the remaining oxide orebody during the construction phase.

No mining took place at Kinsevere in 2021. The operation produced 48 017 t in the year and relied on lower grade stockpiles and third-party ores to feed the processing plant.

MMG CEO Liangang Li said the expansion project demonstrated MMG’s commitment to investing in Africa and to securing a strong future for the Kinsevere asset.

“We are committed to growing our presence in Africa and following today’s commitment, we are excited to start our next phase of growth in this highly prospective region,” Li said.

“The project adds a significant amount of cobalt production to our portfolio, at a time when demand from electric vehicles and energy storage systems will accelerate and we transition towards a low carbon future,” he added.

The Kinsevere expansion project is one of two key growth projects for MMG, the other being the Chalcomba pit and associated infrastructure at Las Bambas, in Peru. The miner on Thursday announced it had received regulatory approval for the development, which would underpin a production increase at the mine to about 380 000 t/y to 400 000 t/y of copper in concentrate for the medium term.

The Kinsevere Expansion Project and the Chalcobamba development at Las Bambas are expected to add more than 150 000 t/y of copper equivalent production by 2025 compared with the 2021 production level, an increase of 28%.

Total capital expenditure for 2022 is expected to be between $700-million and $800-million, including about $400-million to $500-million attributable to Las Bambas and $180-million to $200-million for the Kinsevere expansion project.