Canada's Ivanhoe Mines has started producing copper concentrate at its Kamoa-Kakula project in the Democratic Republic of Congo (DRC), several months ahead of schedule, as copper prices continue to near record highs, foreign media reported.
According to preliminary projections, Kakula, the first mine planned for the concession, will produce 3.8 million tons of ore per year with an average raw material grade of "well over 6 percent copper" during its first five years of operation.
Ivanhoe and partner Zijin Mining said the first batch of ore was brought into the concentrator on May 20 for an initial thermal test of ball mills and other processing equipment.
As of May 25, 5 to 6 percent of copper ore was transported directly from underground mining operations in Kakula to raw ore piles and concentrators.
Ivanhoe co-chairman Robert Friedland described the first production of Kamoa-Kakula as a "historic moment" for Ivanhoe and the Democratic Republic of the Congo.
The country's president, Felix Tshisekedi, said it was a clear signal that the country was open for business and investment.
"The discovery and delivery of a copper province of this size, grade and outstanding ESG qualification, ahead of schedule and within budget, is a copper industry unicorn," Friedland said in a separate statement.
The mining veteran noted that while the exploration journey began more than 20 years ago, the Kakula deposit was discovered more than five years ago."
From the first borehole to a major new mining operation, this is a significant step forward in the mining industry's glacial standards."
The opening of Kamoa is really a big deal for the copper market.
Most of today's largest mines are decades old and, with a few exceptions such as Solgold's Cascabel in Ecuador and Anglo American's Quellaveco project in Peru, there have been no significant new discoveries for years.
While copper projects are in the pipeline, copper producers are wary of speeding up plans to avoid a repeat of past cycles of oversupply at a time when mine construction is much more difficult and costly, which is one reason copper prices are near 10-year highs and above $4 a pound.
CRU estimates that the industry will need to spend more than $100 billion by 2030 to make up for an annual supply shortfall of 4.7 million metric tons.
If no mines are built, the potential shortfall could reach 10m tonnes, according to Trafigura, the commodities trader.
Friedland, who made his fortune from the Voisey's Bay nickel mining project in Canada in the 1990s, has worked at Kamoa-Kakula for 10 years.