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June 10, 2021

CITIC Metal and Zijin sign offtake agreements for Kamoa-Kakula copper mine

The Kamoa-Kakula mine will have a peak annual copper production of more than 800,000 tonnes.

CITIC Metal and China’s Zijin Mining have signed offtake agreements with the Kamoa Copper joint venture (JV) for the Kamoa-Kakula mine in the Democratic Republic of Congo (DRC).

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As ore mines ramp up and come on stream, the total number of active surface machines (including trucks, excavators, shovels, loaders, graders and dozers) is forecast to rise from 141,470 in 2020 to 167,367 by 2025. This will be a CAGR of 3.4% from 2020 to 2025. The largest contributor to this growth is expected to be trucks, particularly smaller-sized trucks with shorter lifespans, used extensively in parts of Asia Pacific. Underground mining equipment is similarly expected to see a CAGR of 2.3% in this same time frame, with the number of mining trucks and loaders/LHDs in active underground mines expected to rise to 19,853 by 2025. GlobalData’s extensive mine-site research and equipment models have been used to build a complete view of mobile mining equipment populations globally for trucks, loaders, graders, dozers, excavators and shovels. This report includes informative breakdowns by each major region and key mining country, and also by major commodity. Read GlobalData’s Global Surface and Underground Mining Equipment: Populations & Forecast to 2025 for a complete view of the market, allowing you to best position yourself for the future.
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Under the agreements, CITIC Metal and Zijin’s subsidiary Gold Mountains (HK) International Mining Company will each purchase 50% of the copper production from phase one of the Kamoa-Kakula mine.

The two firms will buy the copper concentrate at the Kakula Mine and the blister copper at the Lualaba Copper Smelter, on a free-carrier basis.

In addition to making a $300m advance payment in total to Kamoa Copper, the two companies will be responsible for the arrangement of freight and shipment to the final destination.

Operated by Kamoa Copper, the Kamoa-Kakula copper project entered the production phase last month. It is estimated to have an annual production exceeding 800,000t.

The JV comprises Ivanhoe Mines (39.6%), Zijin Mining Group (39.6%), Crystal River (0.8%) and the Government of the DRC (20%).

Ivanhoe Mines president and CFO Marna Cloete said: “The agreements reflect the great partnership we have with CITIC Metal and Zijin, and the advance payment facilities significantly reduce the mine’s working capital requirements as phase one production ramps up.”

Last month, an agreement was signed by Kamoa Copper for the processing of certain volumes of Kamoa’s copper concentrate production at the Lualaba Copper Smelter.

Located outside Kolwezi, the Lualaba Copper Smelter is owned by China Nonferrous Metal Mining Group (CNMC) and Yunnan Copper of Kunming.

The smelter is expected to treat up to 150,000 wet metric tonnes of copper concentrates from the Kamoa-Kakula mine.

Cloete said: “We also are pleased to secure a long-term tolling agreement with the local Lualaba Copper Smelter, in keeping with our commitment to in-country beneficiation that includes Kamoa Copper’s longer-term plan to construct its own direct-to-blister smelter.

“We have all necessary authorisations in place and will commence exports of clean, hydro-electricity-produced copper products from the Kamoa-Kakula mine to meet the burgeoning international demand for electrification of the global economy.”

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Dig deeper with our mining equipment forecasts

As ore mines ramp up and come on stream, the total number of active surface machines (including trucks, excavators, shovels, loaders, graders and dozers) is forecast to rise from 141,470 in 2020 to 167,367 by 2025. This will be a CAGR of 3.4% from 2020 to 2025. The largest contributor to this growth is expected to be trucks, particularly smaller-sized trucks with shorter lifespans, used extensively in parts of Asia Pacific. Underground mining equipment is similarly expected to see a CAGR of 2.3% in this same time frame, with the number of mining trucks and loaders/LHDs in active underground mines expected to rise to 19,853 by 2025. GlobalData’s extensive mine-site research and equipment models have been used to build a complete view of mobile mining equipment populations globally for trucks, loaders, graders, dozers, excavators and shovels. This report includes informative breakdowns by each major region and key mining country, and also by major commodity. Read GlobalData’s Global Surface and Underground Mining Equipment: Populations & Forecast to 2025 for a complete view of the market, allowing you to best position yourself for the future.
by GlobalData
Enter your details here to receive your free Report.

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