Canadian company Ivanhoe Mines and Congolese state-owned mining company Gécamines have begun construction activities at the historic Kipushi underground zinc-copper mine, which they plan to return to production by the end of 2024.
At a groundbreaking ceremony, the Kipushi Corporation said pre-production capital costs, including contingencies, were estimated at $382 million.
He noted that using existing and rehabilitated surface and underground infrastructure would allow the joint venture to keep costs relatively low while taking two years to reach production.
“Kipushi is exceptional, not only because of the famous deposit of Big Zinc, which is one of the richest deposits in the world, but especially because of the people of Kipushi and the unique partnerships that make today’s ceremony possible. today,” said Marna Cloete, president of Ivanhoe Mines.
The Kipushi 2022 feasibility study envisions an 800,000 tonne per year concentrator and underground mine, producing an average of 240,000 tonnes of zinc per year over a 14-year life.
The two companies said that once in production, Kipushi would be the world’s highest-grade major zinc mine, with an average head grade of 36.4% in the first five years of production.
At a zinc price of $1.40 per kg, the net present value (NPV) after tax at a real discount rate of 8% is $1.4 billion, with a real internal rate of return (IRR ) after tax of 54%. The current zinc spot price is $1.46 per kg.
Ivanhoé has also signed a memorandum of understanding with the provincial government of Haut-Katanga to study options for the modernization of the DRC-Zambia border crossing, in the town of Kipushi, for commercial imports and exports.
The plan is to build a dedicated commercial border post at the Kipushi mine and upgrade the existing one in Kipushi town, which currently only serves local traffic between the DRC and Zambia.
The mine has a long and storied history as a major producer of copper and zinc. Built and then operated by Union Minière for 42 years, it began mining an 18% copper deposit from an open pit mine in 1924. At the time, it was the richest copper mine in the world. .
Kipushi then made the transition to become the richest underground copper, zinc and germanium mine in Africa. Gécamines took control of the mine in 1967 and operated it until 1993, when it was placed under care and maintenance due to a combination of economic and political factors.
Cecilia Jamasmie
