Ivanhoe Mines looks to fast-track expansion at Kamoa-Kakula
Ivanhoe Mines joint venture with China’s Zijin Mining is in a strong position to move its copper project forward following the recent success of its $575mn convertible notes financing.
Co-Chairs Robert Friedland and Yufeng ‘Miles’ Sun are consideringhigh-priority opportunities including accelerating the Phase 3 expansion at the Kamoa-Kakula copper mine (beyond Phases 1 and 2).
Fast-tracking additional hydropower upgrades in the DRC also is a high-priority opportunity to ensure abundant clean and renewable electricity for all subsequent expansions at Kamoa-Kakula. The management team also is evaluating a potential, state-of-the-art, direct-to-blister smelter that could bring numerous economic benefits and further reduce the project’s Scope 3 emissions.
The funding also will provide opportunities to expand and accelerate the copper exploration program on the company’s Western Foreland exploration licences, located in close proximity to the Kamoa-Kakula mining licence.
Friedland commented: “The proceeds from the offering strengthen the position of Ivanhoe Mines. The company will now look to further increase production at our Kamoa-Kakula copper joint-venture, and to accelerate the Phase 3 concentrator expansion from 7.6 million tonnes per annum to 11.4 million tonnes per annum. Together with our partner Zijin Mining, we have already accelerated the Phase 2 expansion to begin production in Q3 2022 and bring copper production to approximately 400,000 tonnes, or approximately 880 million pounds, per year.
"Our improved capital position now opens the distinct possibility of earlier development of the Phase 3 expansion, which would bring copper production at Kamoa-Kakula, up to approximately 530,000 tonnes, or approximately 1.2 billion pounds, per year.”
“We are delighted to welcome many new institutional investors to Ivanhoe Mines,” added Friedland. “Our company is about to make the long-fought transition from an explorer and developer, to becoming a major diversified mining company. It has been a remarkable journey for Kamoa-Kakula and Platreef; to grow from grassroots discoveries to imminently joining the ranks of the world's largest producers of copper, platinum-group metals and nickel.”
Friedland believes Ivanhoe Mines is uniquely positioned as both a deep value and growth equity story, with industry-leading Environmental, Social and Governance attributes.
Newmont acquires Canada’s GT Gold in $325mn deal
Newmont, the world’s biggest gold miner, has acquired Canada’s GT Gold in a deal worth $325mn. The gold giant now controls the Tatogga gold-copper project in the Traditional Territory of the Tahltan Nation.
“With the acquisition of GT Gold and the Tatogga project in the highly sought-after Golden Triangle district of British Columbia, Canada, Newmont continues to strengthen our world-class portfolio,” commented Newmont President and CEO Tom Palmer.
“We look forward to continuing to build a respectful and meaningful relationship with the Tahltan Nation, including the community of Iskut. The relationships we have with Indigenous communities, First Nations and host communities are critical to the way we operate. We will partner with the Tahltan Nation at all levels, and with the Government of British Columbia to ensure a shared path forward as the Company understands and acknowledges that Tahltan consent is necessary for advancing the Tatogga project.”
Newmont’s acquisition includes the Tatogga project, comprised primarily of the Saddle North deposit, which has the potential to contribute future significant gold and copper annual production. There are also further exploration opportunities beyond the known deposits at Saddle North within the land package. The Tatogga project adds to Newmont’s existing interest in the prospective Golden Triangle through the company’s 50% ownership in the Galore Creek project.
Newmont is the world’s leading gold company and a producer of copper, silver, zinc and lead. A world-class portfolio of assets, prospects and talent is anchored in favourable mining jurisdictions in North America, South America, Australia and Africa. The American miner is celebrating its 100th anniversary this month.
With gold prices on the rise, the last six months has seen gold industry M&A activity accelerating. A recent Mckinsey report, advises that the industry need to be mindful of mistakes made during the previous gold price boom, when growth was chased unidirectionally by several companies.