Kamoa Copper SA’s Phase 2 Concentrator Plant Approaching 93% Completion

Dedicated engineering team appointed with goal of boosting combined Phase 1 and Phase 2 copper production up to 450,000 tonnes per annum

Kolwezi, Democratic Republic of Congo–(Newsfile Corp. – January 24, 2022) – Ivanhoe Mines (TSX: IVN) (OTCQX: IVPAF) Co-Chairs Robert Friedland and Yufeng “Miles” Sun announced that Kamoa-Kakula’s Phase 2, 3.8-million-tonne-per-annum (Mtpa) concentrator plant is expected to be 93% complete by January 31, 2022, with hot commissioning of the concentrator on track to begin in April 2022, at the front end of the Q2 2022 previous guidance and several months ahead of the original schedule.

Hot commissioning involves introducing first ore into the plant at a reduced feed rate to set equipment parameters and test performance. Feed rate is then steadily increased.

Kamoa Copper continues to make significant construction progress on the Phase 2 concentrator plant, and the plant is expected to be approximately 93% complete by the end of January. Hot commissioning now is expected to commence in April, and the first copper concentrate produced from the Phase 2 plant is expected approximately one week after ore is fed into the ball mills.

The Phase 2 plant is identical to the Phase 1 3.8-Mtpa concentrator plant and a faster ramp-up profile is expected, with the added benefit of operational knowledge gained during the commissioning of Phase 1.

For comparison, the Phase 1 concentrator reached monthly design throughput during September 2021, which was the fourth full month of operation. First ore was introduced into Kamoa Copper’s Phase 1 concentrator plant on May 20, 2021, and first concentrate was produced from the Phase 1 plant on May 25, 2021. The Phase 1 concentrator currently is running at a throughput that is in excess of its design capacity of 3.8-Mtpa by more than 15%, with 117% of design throughput achieved in December. Copper recoveries also are being achieved that are in excess of design recovery of 86%, depending on feed grade, with December’s recoveries approximately 2% higher.

A dedicated project team has been appointed to de-bottleneck both the Phase 1 and Phase 2 concentrators (after commissioning), with targeted improvements aimed at increasing plant throughput from the design of 7.6 million tonnes per annum to 9.0 million tonnes per annum and producing up to 450,000 tonnes per annum of copper in concentrate from the first two plants once steady-state is achieved.

As announced earlier this month, the 2022 production guidance for the Kamoa-Kakula Copper Complex is between 290,000 to 340,000 tonnes of copper in concentrate. The figures are on a 100%-project basis and copper reported in concentrate is prior to refining losses or deductions associated with smelter terms.

“While most of the mining industry struggles to meet construction timelines and budgets, Kamoa Copper continues to exceed expectations in delivering on the project’s first two development phases,” said Mr. Friedland. “Kamoa-Kakula represents only the beginning of our undertaking to unlock the potential of this remarkable new copper province, which has the unique combination of outstanding scale, grade, mine life, and environmental, social, and governance credentials.”

The Phase 3 expansion, which is expected to be commissioned in Q4 2024, also is advancing, with work ongoing on a new box cut to access the Kamoa Mine. An updated pre-feasibility study, including the Phase 3 expansion, is expected in Q3 2022.

Kamoa-Kakula’s Phase 1 (left) and Phase 2 concentrator plants.

Electrician Tresor Nawej Tshimwish installing an electrical cable at the Phase 2 high-pressure-grinding-rolls (HPGR) substation. More than 83% of the Phase 2 electrical cable has been installed.

Mardoche Muswamba (left) and Kakeya Tshidjamba installing electrical wiring to the pneumatic control valves on the Phase 2 primary mill cyclones. More than 75% of the Phase 2 instruments have been installed.

Ilunga Geplige strapping cables at the Phase 2 secondary crusher. Approximately 170,000 metres of copper electrical cable will be used to wire Kamoa-Kakula’s Phase 2 plant.