Ivanhoe Mines Ltd. said Nov. 28 that an updated preliminary economic assessment for the Kamoa-Kakula copper joint venture with Zijin Mining Group Co. Ltd. in the Democratic Republic of the Congo estimated a posttax net present value, discounted at 8%, of US$7.18 billion, an internal rate of return of 33% and a 3.1-year payback.
The study for the project incorporated a 50%-higher mining rate than the December 2016 PEA and used a base case of US$3.00 per pound of copper and a probable mineral reserve of 4 million tonnes of copper contained in 125.1 million tonnes grading 3.81% copper.
Initial CapEx for the two-phased underground operation is pegged at US$1.23 billion, including contingency.
Average copper concentrate production is expected at 9.4 million dry tonnes, with a total cash cost of US$1.23/pound of copper over a 44-year mine life.
The company said the study targets an initial operation at the Kakula mine, to be followed by a separate operation at the Kamoa deposit. Initial production will occur at a rate of 6 million tonnes per annum, to be increased to 12 mtpa with ore from the Kansoko mine.
A pre-feasibility study for a 6 mtpa operation at the Kakula mine is being undertaken, with completion expected in the second half of 2018.
