The Giant Kamoa—Kakula Project in the Democratic Republic of Congo

"The Kamoa-Kakula copper project—a joint venture between Ivanhoe Mines, Zijin Mining Group Co. Ltd, and the government of the Democratic Republic of Congo—has been independently ranked as the world's largest undeveloped high-grade copper discovery by international mining consultant Wood Mackenzie. It is a very large, near-surface stratiform copper deposit with adjacent prospective exploration areas within the Central African Copperbelt, approximately 25 km west of the town of Kolwezi and about 270 km west of the provincial capital of Lubumbashi. A phased development approach is currently envisaged. The first phase of the project involves the development of a 6 Mt/a underground mine and surface processing complex (dual stream concentrator) at the Kakula deposit, a discovery announced in early 2016. The second phase involves an integrated 12 Mt/a two-stage development, beginning with initial production from the Kakula mine, to be followed by a subsequent, separate underground mining operation at the nearby Kansoko mine, along with the construction of a smelter. Project description and locationThe Kamoa–Kakula project comprises a newly discovered, very large stratiform copper deposit with adjacent prospective exploration areas, located within the Central African Copperbelt in Lualaba Province, Democratic Republic of Congo (DRC). The Kamoa–Kakula project lies approximately 25 km west of the town of Kolwezi and about 270 km west of Lubumbashi. Ivanhoe owns a 49.5% share interest in Kamoa Holding, an Ivanhoe subsidiary that currently owns 80% of the project. Zijin Mining owns a 49.5% share interest in Kamoa Holding, which it acquired from Ivanhoe in December 2015 for an aggregate cash consideration of US$412 million. The remaining 1% interest in Kamoa Holding is held by privately-owned Crystal River.The Kamoa–Kakula project consists of the Kamoa exploitation licences (exploitation permits 12873, 13025, and 13026, which cover an area of 397.4 km2) and one exploration licence (exploration permit 703 covering an area of 12.74 km2). The Kamoa exploitation licences, approved 20 August 2012, grant Kamoa Copper the right to explore for, develop, and exploit copper and other minerals, for an initial 30-year term, expiring on 19 August 2042. The permits can then be extended for 15-year periods until the end of the mine’s life."