Kamoa-Kakula Complex Achieves Record Copper Production

KOLWEZI, DEMOCRATIC REPUBLIC OF CONGO - Ivanhoe Mines reported that the Phase 1, 2, and 3 concentrators at the Kamoa-Kakula Copper Complex in the Democratic Republic of the Congo (DRC) achieved a monthly combined production record of 50,176 tonnes of copper in concentrate last month. The concentrators milled 1.35 million tonnes of ore at an average feed grade of 4.19% copper during the month.

The recently ramped-up Phase 3 concentrator achieved an average recovery rate of 87.4% during April, exceeding its design rate of 86%. Since mid-March, total copper production has notably risen to an average of approximately 12,000 tonnes per week, as shown in Figure 1. The outperformance is equivalent to an annualized production rate of approximately 625,000 tonnes per annum, approximately 12% higher than the midpoint of 2025 guidance.

The outperformance was underpinned by initiatives implemented earlier in the first quarter that enabled the Phase 3 concentrator to be consistently fed at higher rates than originally designed. Phase 3 milled a record 1.51 million tonnes of ore during the first quarter. The record is equivalent to an annualized milling rate of 6.1 million tonnes per annum, which is more than 20% higher than the Phase 3 concentrator's design capacity of 5.0 million tonnes per annum.

Kamoa-Kakula reached a major turning point during the quarter, following a significant increase in imported hydroelectric power that provided Kamoa-Kakula's management team with the confidence to finalize commissioning and commence the start-up of the smelter. The start-up of the new on-site copper smelter is expected soon.

During the first quarter, the total average power required for the Phase 1, 2, and 3 operations was between 130 MW and 140 MW. At the beginning of March, Kamoa-Kakula was drawing 50 MW of domestically generated hydroelectric power, with 50 MW of hydroelectric power drawn from imported sources. The balance of required power was provided by on-site, diesel-generated backup power, of which there is an installed capacity of approximately 160 MW. Power drawn by the smelter is expected to gradually increase from 45 MW, following first feed of concentrate, up to 70 MW once at full capacity.

During the first quarter, an agreement was signed to increase the total imported hydroelectric power via the Zambia-DRC interconnector. From mid-March, imported hydroelectric power increased by 20 MW to 70 MW and increased further to 100 MW in April. When combined with approximately 50 MW of domestic hydropower, this gives Kamoa-Kakula approximately 150 MW of stable hydropower, which provides enough electricity to power the Phase 1, 2, and 3 operations. Further increases in grid power are expected throughout 2025 as the on-site smelter ramps up. The additional power is largely sourced from Mozambique via a wheeling agreement through the Southern Africa Power Pool network.

As previously disclosed, wet commissioning of Turbine #5 at Inga II, with a hydroelectric generation capacity of 178 MW is expected to commence in the second half of 2025. Kamoa-Kakula is expected to be allocated an initial, additional 71 MW of hydroelectric power once commissioning is complete, increasing up to 178 MW as the ongoing grid improvement initiatives are completed in 2026.

The majority of the ore processed by the Phase 3 concentrator continues to be sourced from underground development. The crews at the Kamoa and Kansoko underground mines are focused on underground development, opening up approximately 18 months of ore reserves before the commencement of primary mining. Opening up a large accessible underground reserve base provides operational flexibility for the underground mining crews, similar to that which has already been achieved at the Kakula Mine.

The flat-lying nature of the Kamoa and Kakula orebodies means that underground development can be carried out in ore, albeit at lower grades. Underground development of the Kamoa mines is expected to continue until Q4 2025, after which Phase 3 concentrator feed grades are expected to increase to approximately 3% copper.