Kinsevere
Kinsevere represents Anvil's most significant investment in the DRC to date. The current HMS processing operation produces approximately 15,000tpa of copper contained in concentrate, however the main focus is on completing construction of the $400 million Kinsevere Stage II SX-EW plant that is expected to produce 60,000tpa of cathode copper.
Fast Facts
| Kinsevere | |
|---|---|
| Ownership | Anvil 95% - Mining Company Katanga (MCK) 5%1 |
| Location | 30km north of Lubumbashi, the provincial capital of Katanga Province, DRC |
| HMS production | Restart of the HMS Plant - March 2009 |
| 2009 production | 16,406 tonnes Cu in oxide concentrate form |
| Expansion | Construction of a 60,000 tpy SX-EW copper cathode |
| Capex(E) | $400 million |
| IRR2 | 36% |
| NPV2 | $473 million |
| Payback2 | 3.6 years |
| Commissioning(E) | Q2 2011 plus 4 to 6 months of ramp-up period |
| Commercial Production | Q3 2011 |
1. Royalties: 2% NSR to DRC Government and 2.5% gross to Gécamines.
2. Estimates are based on the total Capex of $400 million, a 10% discounted rate and an average copper price of $2.44/lb Cu.
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Kinsevere Stage II
Expected Operating SX-EW Parameters
- Annual production 60,000 Cu cathode (SX-EW)
- Cash cost of $0.89/lb Cu (C1)
- Total Cash cost including royalties of $1.00/lb Cu
- Total operating cost of $1.33/lb Cu (C3)
- Operational life of 14+ years (oxide only)
Expected Operating Highlights
(As per the 2009 revised Feasibility Study.)
| Ore mined (million tonnes) | 18.0 |
| Average grade (% ASCu1) | 3.5 |
| Waste mined (million tonnes) | 22.4 |
| Waste to ore ratio | 1.2 : 1 |
| Processing life (years) | 14 |
| Ore processed (million tonnes)2 | 21.9 |
| Average processed grade (% ASCu) | 3.2 |
| Recovery3 (%) | 91.9 |
| Cu metal produced (tonnes) | 648,500 |
1. ASCu means Acid Soluble Copper.
2. Total ore processed exceeds the total ore mined due to reclaim from existing long-term stockpiles, plus HMS floats and effluent stockpiled.
3. Average recovery over the term of Stage II reflects a period of reduced recovery during production ramp-up.
Kinsevere Oxide Mineral Reserves and Resources(1) at December 31, 2009.
| Classification | Ore (Mt) | Cu (%) | ASCu(2) (%) | Contained Metal |
|---|---|---|---|---|
| Proven & Probable Oxide Reserves | 20.8 | 3.9 | 3.3 | 690 |
| Measured & Indicated Oxide Resources | 25.7 | 3.8 | 3.1 | 807 |
| Additional Inferred | 14.2 | 3.6 | N/A | 5073 |
1. Reserves and resources as at December 31, 2009. The Proven & Probable Reserve is included within the Measured & Indicated oxide mineral resource.
2. ASCu means Acid soluble copper.
3. Based on total copper (TCu) assays (%).
2009 Kinsevere HMS Production
Anvil recommenced operation of the Kinsevere Heavy Media Separation (HMS) plant on March 27, 2009, focused on achieving a low-cost operation to enable the Company to generate positive cash flow until such time as the Stage II Solvent Extraction - Electrowinning (SX-EW) plant becomes operational. More information
In 2009, the HMS plant produced 62,468 tonnes of concentrate, at an average grade of 26.3% copper for 16,406 tonnes of copper contained in concentrate. Key performance details of the HMS plant for the fourth quarter and the full year 2009 are set out in the table below.
Q4 2009 | March 27 to December 31, 2009 | |
|---|---|---|
| Ore mined (tonnes) | 164,966 | 297,459 |
| Ore processed - HMS pant | 65,313 | 231,823 |
| Cu grade - HMS (%) | 8.9 | 8.2 |
| Contained copper in HMS feed (tonnes) | 5,782 | 19,066 |
| Recovery Cu (%) | 77.0 | 76.0 |
| Concentrate produced - HMS and spirals (tonnes) | 18,911 | 62,468 |
| Concentrate grade - HMS and spirals (%Cu) | 26.3 | 26.3 |
| Copper produced in concentrate - HMS and spirals (tonnes) | 4,970 | 16,406 |
| Operating cash costs/tonne of concentrate (ex mine gate) $/tonne | 304 | 218 |
1. In addition to producing a coarse concentrate from the HMS plant, a fine grained, slightly lower grade concentrate is produced from a spirals circuit, through which the fines (<0.6mm) that are screened off before the HMS circuit, are treated.
2010 Production Guidance
For 2010, the Company has budgeted for feed to the crusher of 730,000 tonnes, 378,000 tonnes of which is being sourced from mining and 352,000 tonnes is being reclaimed from existing stockpiles. As a result, the average grade to the plant is expected to be 3.8% copper. Based on 2010 forecast production of 16,500 tonnes and an assumed average realised copper price of $2.50 for 2010, the HMS plant is expected to generate sufficient cash to allow the Group to maintain a positive operating cash flow. Whilst this is a lower average grade relative to the life of mine plan for the same period, the revised short to medium-term mine plan allows higher grade ore mining to be deferred until the Stage II SX-EW operation commences.
Status of Kinsevere Stage II - August 16, 2010
As at July 31, 2010, $83.0 million of the $200 million budget for completion of construction had been spent, $64.0 million of which relates to Ausenco EPC (Lump Sum Turn Key) Contract costs and $19.0 million to Owner's Costs, with a further $84.0 million committed for a total spent and committed amount of $167.0 million of the remaining $200 million required to complete the project.
The Company continues to progress with the construction and fabrication works for the Kinsevere Stage II SX-EW development, with extrapolation of the actual progress curve now indicating commencement of full commissioning in the second quarter of 2011. While critical activities relate to the installation of internal site utilities, acid proofing, electricals and instrumentation, significant progress has been achieved in the crusher areas, reagent tanks, electro-winning tankhouse and tailings storage facility.
The on-site construction workforce is now 1,030, of whom 745 are direct labour. The project has exceeded 750,000 LTI (lost time injury) free man hours.
Key areas of progress include the following:
- Civil and Structural:
Civil construction is approximately 97% complete.
Concrete works are approximately 90% complete.
North-south and east-west pipe-racks have been completed and installation of piping and cable ladders onto the pipe-racks is continuing.
Stainless steel tanks are approximately 85% complete.
Acid storage tanks have been erected and roof covers installed.
The Tailings Storage Facility is approximately 70% complete and final earthworks on the solution ponds are well underway.
- Mechanical construction is approximately 35% complete:
Apron feeder and MMD sizer are installed.
SAG mill installation as commenced.
Installation of leach tanks agitators has commenced.
Installation of SX agitators / pump mixers is well advanced.
EW filters are assembled.
Water and air system tanks equipment is being assembled.
Reagent system assembly has started.
Ordering of major capital items is approximately 98% complete.
- Significant progress has been made in the crusher, SAG mill and ROM pad areas:
Steel structural and plate work related to the installation of the crusher, apron feeder and MMD sizer has been completed.
Steel and concrete work on the bridge between the ROM pad and crusher has been completed.
Concrete work for the mill feed conveyors foundations has been completed.
Concrete works for the main substation at the grinding facility has been completed and block work installation is well underway.
The mill erection vendor representatives arrived on site in July to oversee the installation of the SAG mill.
- Progress made with structural steel erection, the CCD thickeners, the pin bed clarifiers, the low-grade and high-grade solvent extraction tanks and electro-winning tankhouse area includes the following:
Bridges and rakes have now been installed in the CCD thickeners.
SAG mill installation as commenced
Main structures for the pin bed clarifiers have been largely erected.
Welding of the high-grade and low-grade SX stainless steel tanks has been completed and the welds have been water tested.
The slab for the tank foundations at the south and north ends of the east side of the electro-winning building and the slab for the stripping machine have been completed.
Installation of the hoists on the electro-winning crane has commenced and the installation of the crane conductor bars has been completed.
Approximately half of the electro-winning cells are already available for installation.
The project schedule continues to be revised as the construction work progresses, and although internal completion dates continue to move marginally, the project completion date remains unchanged.
Kinsevere Stage II Timetable
| Kinsevere Stage II SX-EW Flow Sheet Processing Plant
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Kinsevere Stage II - Full Plant Viewed from Crushing | Kinsevere Stage II - Full Plant
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