Ivanhoe Mining (TSX: IVN) said on Monday that it expected to produce 290000 to 340000 tonnes of copper concentrate at its Kamoa-Kakula copper mine in (DRC), Democratic Republic of the Congo, in 2022.
The Canadian miner, which began production on the asset last year, said it had produced 105884 tonnes of copper concentrate in the year to December 31, exceeding the upper limit of 92500-100000 tonnes of additional guidance. Total year-end production was driven by a record monthly output of 18853 tonnes in December, the company said.
The cash cost guidance for copper payable per pound in 2022 is set at between $1.20 and $1.40 per pound, below the $1.37 per pound achieved by Ivanhoe in the last quarter of 2021.
Ivanhoe said it is currently focused on completing the expansion of the mine's second-phase concentrator and is expected to start production in the second quarter of 2022, about three months ahead of schedule.
The company said the project would double the mine's nameplate milling production to 7.6 million tonnes of (Mtpa) per year. The first and second stages are expected to produce about 400000 tons of copper per year.
Ivanhoe said that the third phase of the expansion is also under way, with new box cuts being carried out to open the Kamoa mine. The pre-feasibility study (PFS), which is expected to be updated in the third quarter of this year, includes the third phase of the expansion.
"our distinguished team of geologists believe that the Kamoa and Kakula mines are only the first discovery of a major new mine that extends the legendary African copper belt southwest to the Zambian border." Ivanhoe Co-Chairman Robert Friedland said in a statement.
"this year we will carry out extensive drilling activities on our majority-owned Western Foreland exploration license to unleash the potential of this promising land," Friedrich said. "
Ivanhoe signed an agreement in June with China Zijin Mining's Congo (DRC) subsidiary and trader Citic Metals to sell 50 per cent of the mine's copper production.
Mining billionaire Ferrande has said the project will become the world's second-largest copper mine and the highest-grade copper mine in its main business.
He also believes that Congo has the potential to overtake Chile to become the world's largest copper producer.
The company also vowed to produce the "greenest" copper in the industry because it is committed to becoming the first net zero operating carbon emitter among the world's top copper producers. Friedrich has not set a target date for achieving that goal.
Ivanhoe is also promoting the development of Platreef Palladium-Rhodium-Platinum-Nickel-Copper-Gold Mine in South Africa, which is scheduled to start production in 2024. The miner said the feasibility study for the project should be completed in early 2022.
In Congo, the company is upgrading its historic Kipushi zinc-copper-lead-germanium mine to resume production.
Ivanhoe's share price has doubled in the past year, rising nearly 4% to C $11.09 in Toronto on Monday. The company has a market capitalization of C $13.17 billion (US $10.4 billion).
