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Chairman of the Board at Kamoa Copper S.A., Ben Munanga, has announced that Kamoa Copper has signed copper concentrate and blister copper offtake agreements, on competitive arm’s-length commercial terms, for 100% of Kamoa’s phase 1 copper output (copper concentrate and blister), which is anticipated to be approximately 200,000 tonnes of copper per year.

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Kamoa Copper signed off-take agreements with CITIC Metal (HK) Limited (CITIC Metal) and Gold Mountains (H.K.) International Mining Company Limited, a subsidiary of Zijin Mining Group, for 50% each of Kamoa’s copper products from phase 1. The remaining 50% of products will go to a multiple of other partners. The demand for Kamoa’s copper is due to its clean, high-grade concentrate, is estimated to contain roughly 57% copper and very minimal levels of contaminants.

Munanga comments:

“We are very pleased to have reached agreements with our partners CITIC Metal and Zijin at internationally-competitive terms. 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 1 production ramps up.”

Kamoa Copper started copper production on 25 May 2021, and on 1 June 2021 delivered its first concentrate to the Lualaba Copper Smelter nearby, outside Kolwezi. Kamoa Copper signed a 10-year agreement with the Lualaba Copper Smelter (LCS) on 31 May, for the processing of approximately 40% of Kamoa’s copper concentrate production. This agreement is followed by the conclusion of a strategic partnership with Ivanhoe Mines and the China Nonferrous Metal Mining Group (CNMC) and is in keeping with Kamoa’s commitment to in-country beneficiation.

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The smelter, which began operations in early 2020, will process up to 150,000 wet metric tonnes of Kamoa’s copper concentrate at a market-based fee. LCS will locally produce blister copper containing approximately 99% copper that will be collected by Kamoa from LCS’s storage facility.

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Kamoa Copper signs 10-year agreement with Lualaba Copper Smelter

LCS has been developed in the Democratic Republic of Congo as the first modern, big, pyro-metallurgical copper smelting plant and located about 40 kilometres from Kamoa, along a recently constructed road.

Rochelle de Villiers, Kamoa Copper’s CFO, who is leading the concentrate off-take and marketing negotiations, stated:

“Kamoa Copper is pleased to have concluded an agreement with LCS, which will make up about 40% of the total volumes of concentrate produced by phase 1, making the most of available in-country smelter capacity. We look forward to a long-term collaboration with our new partner.”

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Kamoa’s off-take agreements with CITIC Metal (HK) (CITIC Metal) and Gold Mountains (H.K.) International Mining Company, a subsidiary of Zijin Mining Group include both concentrate exports (60%) and blister copper ingots from LCS (40%).

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Kamoa Copper S.A. is expected to yield an exceedingly high-quality, clean copper concentrate, desirable for smelter across the globe. Metallurgical tests show that Kamoa’s concentration has exceptionally low amounts of arsenic, according to global norms at 0.01%. Copper concentrate balancing offtake and export arrangements for the activities during phase 1 are approaching completion, including direct arrangements for export concentrate. The mine aims to update the off-take agreements for phase 1 soon.