Processing: New processing facility

New refinery rationale

The rehabilitation of KOV gives the group a unique opportunity to access one of the richest large-scale copper and cobalt deposits in the world. To complement this asset, the Group is constructing one of the largest SX-EW (solvent extraction - electro-winning) refineries in the world. The refinery technology chosen by the group is well proven, developed in the 1960s and adopted more widely in the 1980s and 1990s. This technology is also modular in nature and therefore easily scalable, meaning that increased scale does not present technical risks.

Refinery details

The new processing facility will be located 6 km from KOV. Primary crushing of the ore will take place in the pit utilising existing infrastructure after which it will be transported via overland conveyor. The solvent extraction (SX) portion of the refinery will utilise an agitated tank leach process. To keep pace with the need to strip and handle almost 6,400 cathodes per day, the electro-winning (EW) portion of the refinery will be fully automated.

Once the new refinery commences production, the major products will be electrolytic A-grade copper (250,000 tonnes per year) and cobalt hydroxide (27,500 tonnes per year of contained metal).

Low production costs

The project financial model uses the assumptions of $1.10/lb for copper and $10.00/lb for cobalt, and even at these conservative prices still gives attractive returns. Cash costs are expected to be very low and potentially negligible if one assumes a $10/lb cobalt credit.

Road and rail infrastructure

Significant external infrastructure is necessary to support an operation of this magnitude. And while in need of refurbishment, the African copperbelt’s historical role as a major player in copper and cobalt production means that road and rail networks are already in place; the latter with existing connections to Durban (South Africa), Lobito (Angola) and Dar-es-Salaam (Tanzania). In collaboration with a number of other operators in the area, ongoing refurbishment and maintenance work has drastically improved the road from Kolwezi to Zambia via Likasi and Lubumbashi.

Electricity

Owing to significant water resources, the DRC has a large installed hydroelectric power generation base. Unfortunately, in light of historical turmoil in the area, much of it has fallen into disrepair. Of the approximately 2,500 MW capable of being restored, only 700 MW are consumed at present.

To ensure electricity supply to the operation, the group has invested modest capital for the repair of hydro-electric generation units at Nzilo, Nseke and Mwadingusha.

At full capacity, the group’s operations will consume approximately 200 MW. The Group had signed a Memorandum of Understanding (MOUs) with SNEL, the DRC state electricity provider, to supply almost half the required capacity. Negotiations are well advanced to secure the remaining power requirement.