Ivanhoe Energy is an independent international heavy oil development and production company. Ivanhoe’s core operations are in Canada, Ecuador, China and Mongolia, with business development opportunities worldwide.
Ivanhoe Mines gains as company weighs $1.4 bln Congo mine
Ivanhoe Mines (OTCMKTS:IVPAF), a base metals and platinum development company, advanced in afternoon trading after saying a large mine and smelter would be developed using a two-phased approach in the Democratic Republic of Congo.
Ivanhoe shares added 3.2 percent to $2.10 at 12:40 p.m. in New York, trimming this year's losses to 51 percent.
The preliminary economic assessment of its Kamoa copper discovery indicated the project would cost $1.4-billion to construct and at a steady-state, would target output of 300,000 tonnes per year of blister copper, the Vancouver, British Colombia-based company said in a statement today.
That output target would establish Kamoa as one of the world's largest and highest-grade copper mines, according to Ivanhoe.
The assessment gave the asset a $4.3-billion pre-tax net present value (NPV) at an 8 percent discount rate and confirmed Kamoa to be in a class of its own.
The Kamoa project is a newly discovered, very large, stratiform copper deposit, with adjacent prospective exploration areas within the Central African copperbelt, and would be developed into a large mine and smelter in two phases.
"Kamoa has the rare combination of a very high copper grade and very large tonnage, qualities that position Kamoa to become a substantial copper producer with one of the lowest cash costs anywhere in the world," the statement quoted Robert Friedland, founder and executive chairman, a saying.
Kamoa would also produce an estimated 1,600 tonnes of sulphuric acid per day. The acid would be sold to copper-oxide miners on the Central African copper belt that currently purchase acid from Zambia or from overseas, Ivanhoe Mines said.