Will the second largest copper mine in the world change ownership?

SMM, 27 Feb: at present, the trend of aging mines in the world is becoming more and more serious. About half of the copper mines in the world have been more than 50 years old, and four of the seven largest mines in the world have been mined for more than 70 years. Because the mining time is too long, the mine grade is decreasing year by year, and the production cost is increasing year by year. In the face of the huge global consumption and growth potential, undeveloped new mines have become the focus of competition and attention of global mining enterprises.

Because of its large reserves and high grade, Camoa-Kakoula copper mine is regarded as the "fresh blood" and "way out" of China's copper industry.

In 2015, Zijin Mining acquired a 49.5 per cent stake in Camoa Copper Mine for 2.52 billion yuan, making it the largest holder of the mine, and Zijin is on track to become one of the most controlled metal mineral resources in China. On November 30, 2017, Zijin Mining announced the results of a preliminary economic assessment of the Camoa-Kakoula copper deposit in the Democratic Republic of the Congo (DRC). The average copper grade of the ore in the first 10 years of the Kakoula section reached 6.4 per cent. Generally speaking, the copper mine with a grade of 3% to 5% is a high-quality copper mine, and the grade of the Camoa-Kakoula copper mine crushes over the other major copper mines.

Zijin Mining announced on the evening of February 27, 2018 that the resource volume of the Kamoa-Kakula (Camoa-Kakoula) copper mine project in the Democratic Republic of the Congo (DRC) has once again set a new record, and the overall amount of copper resources has increased from 24 million tons at the time of acquisition to 42.49 million tons. With an average grade of 2.56%, the project has nearly doubled, making it the fourth largest copper mine in the world and the largest undeveloped copper mine in the world.

According to the announcement, the boundary of the orebody is still not closed, there is a large prospecting prospect, which means that the reserves of resources may be further increased in the future.

Invest 2.52 billion yuan to get more than a trillion yuan worth of copper resources

In 2015, when the economy and mining continued to be in the doldrums, Zijin seized the opportunity of grossly undervalued mineral resources and decisively stepped in to acquire a 49.5% stake in Ivanhoe's Carmoa holding.

Statistics at the time showed that around 2015, the global average price of copper mergers and acquisitions was about 1000 yuan per ton. When Zijin acquired a 49.5 per cent stake in Camoa, it invested about 2.52 billion yuan and acquired half of its equity reserves (about 12 million tons) in the Camoa copper mine, with an average investment of about 210 yuan per ton of copper.

With the continuous development of exploration, the direction of the Kakoula orebody continues to extend. In May 2017, Zijin Mining and Ivanhoe once again announced the increase of Kakoula deposits and the increase of copper resources to 12.67 million tons. The updated Kakoula section copper resources control level + inferred level reached 19.25 million tons, an increase of more than 50% compared with 2017, extending from 7.7km to 13.3km, and has not yet been closed.

By the beginning of 2018, the overall copper reserves of Camoa-Kakoula had reached 42.49 million tons. If the copper price is about 50, 000 yuan / ton, the potential resource value of the copper resources of the Camoa-Kakoula project held by Zijin Mining Institute is more than 1 trillion yuan.

The largest, high-grade, undeveloped copper deposit in the world

"Kakoula is the most eye-catching deposit discovered by our exploration industry in more than 35 years." Ivanhoe Mining Board Executive Chairman Friedland said.

He said that Kakoula, a deposit of high grade, large thickness, and good continuity, will be able to stand out from any copper deposit in the Central African metallogenic belt, and it has proved enough resources to build a world-class highly mechanized copper mine. And compared with other mines of the same level, the initial investment capital is very low.

According to the Ivanhoe Company, which was announced at the same time, the mineralization in the Kakoula mining area is thicker and higher grade than other areas within the scope of the Camoa mining rights, with an average grade of more than 6 per cent of the orebody at a boundary grade of 3 per cent. Calculated on the basis of 6 million tons / year of copper ore development, the existing resources with a boundary grade of more than 3 per cent are sufficient for Kakoula to develop copper ores with an average grade of 5.5 per cent and 6 per cent for as long as 30 years. If the boundary grade is reduced to 1%, it is still higher than the mining grade of most copper deposits in the world, and the copper ore with a grade of about 3% can be mined for as long as 100 years.

According to Friedland, Camora-Kakoula will overtake the famous Glasberg deposit to become the world's fourth-largest copper mine and has the potential to increase its reserves. According to public information, the Glasberg mine, located in Indonesia, is controlled by Freeport, with an average grade of 0.8%.

However, the average grade of mineral resources currently controlled by the Camoa-Kakoula project is 2.72 per cent. According to Friedland, the average grade of the Camoa-Kakoula project is the highest among the top four copper deposits in the world, and it is the largest, high-grade, undeveloped copper deposit in the world. This was assessed on the basis of the copper content in the mineral resources measured and shown by the project.

"Click to enter the registration channel

Scan QR code, apply to join SMM metal exchange group, please indicate company + name + main business