KAMOA Copper, a joint venture between Ivanhoe Mines and its Chinese and Congo partners, reported a maiden September quarter operating profit of $209.7m, the company said in an announcement.
“Turning an operating profit in just the first quarter of commercial production at Kamoa highlights the ability of the mine to deliver as promised, and to self-fund its expansion to produce up to 800,000 tons of copper yearly, as demonstrated in previous independent studies,” said Robert Friedland, founder and executive co-chair of Ivanhoe Mines.
Ivanhoe Mines has a 39.6% in Kamoa copper. Its partner are Zijin Mining Group which has a 39.6% stake, Crystal River Global Ltd (0.8%) and the Government of the Democratic Republic of Congo (20%). Kamoa Copper operates the Kamoa-Kakula copper mine in the DRC.
Kamoa Copper began producing copper in May 2021 and achieved commercial production on 1 July 2021. Production for the third quarter was 41,545 tons of copper in concentrate, for delivery to either the Lualaba Copper Smelter near Kolwezi, or to international markets.
During its first quarter of commercial production, Kamoa Copper sold 41,490 tons of payable copper and recognised revenue of $342.6m, with an operating profit of $209.7m and earnings before interest, tax, depreciation and amortisation of $233.2m.
“Kamoa Copper will rapidly repay its construction costs and pay dividends to its shareholders, including our most important partner, the Government of the Democratic Republic of Congo,” said Friedland.
Kamoa Copper is currently developing a phase two expansion that will take annual production to 400,000 tons of copper a year.