MMG Limited (MMG) has committed to extending the life of its Kinsevere operation in the Democratic Republic of Congo (DRC) for at least 13 years.
The Kinsevere Expansion Project, which was today approved by the Company’s Board of Directors, will mine and process the copper sulphide and cobalt resource at the Kinsevere mine.
MMG CEO Liangang Li said the project demonstrates the Company’s commitment to investing in Africa and to securing a strong future for the Kinsevere asset.
“We are committed to growing our presence in Africa and following today’s comittment, we are excited to start our next phase of growth in this highly prospective region,” Mr Li said.
“The project adds a significant amount of cobalt production to our portfolio, at a time when demand from electric vehicles and energy storage systems will accelerate and we transition towards a low carbon future,” he added.
In addition to extending the life of the Kinsevere mine by at least 13 years from 2022, once fully ramped up, the Kinsevere Expansion Project will bring the annual production of copper cathode up to 80,000 tonnes and 4,000-6,000 tonnes of cobalt in cobalt hydroxide.
Construction will commence in 2022 with first cobalt production expected in 2023. First copper cathode production from the sulphide orebody is expected in 2024 with the mine to continue production of copper cathode from the remaining oxide orebody during the construction phase.
Total capital expenditure for the project is expected to range between US$550-$600 million and will be funded through a combination of available cash reserves and debt facilities.
“Securing the future of Kinsevere will importantly allow us to continue our contribution to nearby communities as well as providing employment and development opportunities for our many valued MMG team members in the DRC,” Mr Li said. “As a first mover in copper production from sulphide ores in the DRC, we are excited about the opportunities.”
ENDS
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