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) | Q1 2011 plus 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.
Click to visit the Image Gallery
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 - May 14, 2010
The Company continues to make good progress with the construction and fabrication works for the Kinsevere Stage II SX-EW development, with significant progress being achieved in the crusher area, the CCD thickeners, the pipe racks and solvent extraction areas. With the end of the wet season and mobilisation of construction personnel well advanced, construction work is ramping up and is expected to be approximately 60% complete by the end of July 2010. Key areas of progress as at April 30, 2010 include:
Design and engineering work is now complete.
In line with manning schedules, Ausenco and its subcontractors have mobilised more than 600 construction personnel to site, with manning levels expected to peak at over 800 towards the end of June and into July.
Key areas of the project have progressed as follows:
Civil construction is approximately 95% complete.
Concrete works are approximately 75% complete.
Construction of the stainless steel tanks is approximately 50% complete.
The Tailings Storage Facility is approximately 65% complete.
Mechanical installation is approximately 30% complete.
Ordering of major capital items is approximately 95% complete.
Plant and equipment previously held in storage continues to be transported to site and previously suspended orders are being reactivated and re-negotiated.
Handover of free-issue equipment from Anvil to Ausenco continues, supported by a specialist engineer from the Owner's Representative Team for the inspection and assessment of equipment that had been in storage. The handover process is expected to be completed during May.
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.
With the commencement of the early works program, the engagement of Group Five, the completion of the engineering and design works more than 600 construction personnel on site, the Company is well positioned to allow for the delivery of the Kinsevere Stage II on-time and on-budget.
Kinsevere Stage II Timetable
| Kinsevere Stage II SX-EW Flow Sheet Processing Plant
Click to view enlarged image |
Kinsevere Stage II - Full Plant Viewed from Crushing | Kinsevere Stage II - Full Plant
|
