Business Enquirer Issue 127 | Kamoa Copper S.A | July 2024

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EXPANSION

TO SEE DRC COPPER COMPLEX BECOME THIRD LARGEST IN THE WORLD

FIRST ORE ACHIEVED AHEAD OF SCHEDULE AT KAMOA KUKULA COPPER COMPLEX

Starting production in 2021, the Kamoa Kukula Copper Complex (Kamoa Copper) based in the DRC, produced 393,551 tonnes of copper concentrate in 2023.

Ajoint venture between Ivanhoe Mines (39.6%), Zijin Mining Group (39.6%), Crystal River Global Limited (0.8%) and the Government of the Democratic Republic of Congo (20%), Kamoa Copper is a very large, near-surface, flat-lying, stratiform copper deposit with adjacent prospective exploration areas within the Central African Copperbelt.

In May 2024, it was announced by Ivanhoe Mines that first ore has been fed into the Phase 3 concentrator at the KamoaKakula Copper Complex. First ore marks the completion of construction of the Phase 3 concentrator, which has been achieved months ahead of schedule and on budget. First concentrate is expected in early June, while ramp-up to commercial production is targeted for early in Q3 2024.

Speaking of the achievement, Ivanhoe Mines Founder and Executive CoChairman, Robert Friedland, said:

“Given the outperformance of KamoaKakula’s operations to date, including higher than expected throughput and recoveries at the Phase 1 and Phase 2 concentrators, we are now studying options to boost copper production towards our next goal of 800,000 tonnes per annum… a production rate that would propel the Kamoa-Kakula Copper Complex towards being one of the two largest copper producers on our planet. In addition to the de-bottlenecking of the Phase 3 concentrator and increasing recoveries to 95% via our ‘Project 95’ initiative, we are now also studying options to accelerate the Phase 4 expansion at Kamoa-Kakula to target a throughput

COPPER

ARTICLE WRITTEN BY: LAURA WATLING

KAMOA

rate of at least 20 million tonnes annually. Given the current copper market, and the expansive copper resources and reserves in proximity of the milling complex, we believe this expanded throughput rate would unlock substantial value for our stakeholders and shareholders in the near and long term.”

As of April 30th 2024, a total of 2.25 million tonnes of ore at a grade of 3.1% copper is stored in surface run-of-mine stockpiles adjacent to the Phase 3 concentrator. The stockpiled ore from the Kamoa 1 and Kansoko mines, containing approximately 70,000 tonnes of copper, with the copper price trading at well over $10,000 per tonne, is being used to de-risk the ongoing wet commissioning and rampup of the new 5-Mtpa concentrator. The completion of Phase 3 will increase Kamoa Copper’s annual copper

production to a ten-year average of 650,000 tonnes of copper. The expansion includes the commissioning of a 500,000-tonne-per-annum on-site, direct-to-blister copper smelter and refurbishment of Turbine #5 at the Inga II hydroelectric facility.

The mine’s 2023 preliminary economic assessment projects a nine-year mine life extension of the Kamoa-Kakula Copper Complex, in addition to the Kamoa-Kakula 2023 pre-feasibility study of 33 years. This case includes the addition of four new underground mines in the Kamoa area (called Kamoa 3, 4, 5 and 6) to maintain the overall production rate of up to 19.2 Mtpa.

During the 10 million man-hours worked on the construction of the Phase 3 concentrator, not a single lost

Established in 2019, Degrita Holding is on a mission to become the leading provider of the highest quality engineering solutions in Democratic Republic of the Congo (DRC).

Partnering with the likes of GE Grid Solutions, AEC Energy solutions, DesSoft - Design Software, Siemens, Schneider Electric, and Watericon LTD, in the last five years the engineering services business has completed 502 successful projects.

Included in these projects is its work for Kamoa Copper, in which it has provided a variety of valuable services including supply and installation of lightning system protection, earthing of electrical circuits, maintenance service of generators, and oil purification of HV transformers.

In addition, it has provided a variety of sustainable solutions to Kamoa Copper, including supply and installation of solar electric power systems, commissioning of chlorine dioxide drinking water disinfection, maintenance of sewage treatment systems, and analysis of dissolved gas of transformers.

Full Spectrum Service Provider

Amongst its capabilities, Degrita Holding’s skilled and experienced team can provide maintenance of industrial equipment, installation of CCTV cameras, supply chain management, and consultancy services.

Considered an industrial engineering partner, its partnerships are often aimed at improving operational efficiency, innovating product or process design, and staying competitive in the marketplace.

Setting itself apart from competitors, Degrita Holding ensures that it is always up to date with the latest technological advances in engineering, helping to improve its efficiency, quality, and competitiveness.

In addition, it emphasises customer service, ensuring to always listen to its customers’ specific needs and tailoring its solutions accordingly. A valuable service, Degrita Holding implements robust project management processes to ensure on-time, on-budget delivery.

“We understand that a customer-centric approach can foster loyalty and referrals,” the business said.

Underpinning its projects is Degrita Holding’s strong, values-based culture which “focuses less on what we do, and more on how we do it”.

Shared Success

The business’ culture strives for “Shared Success”. This is achieved by developing high performing teams that are aligned to Degrita Holding’s vision and values.

“Shared success is dependent upon strong professional relationships and having genuine conversations,” said the business, “We know that if we succeed, then all our valued clients, partners, and shareholders also succeed. This integrated approach begins with our people and the belief that together we can develop trusting relationships with all stakeholders to achieve long-term mutual goals”.

Degrita Holding’s has made significant investment into employee safety to achieve its goal of reducing lost time to injuries, which has been achieved successfully and consistently.

In addition, the business has been awarded ISO 9001 Quality Management Systems, ISO 45001 HSE Management Systems, ISO 31000 Risk Management, and ISO 14001 Environmental Management. Further highlighting its commitment to its team, Degrita Holding’s is committed to the ongoing professional development of its colleagues.

“Engineering is constantly evolving, and well-trained teams are essential to remain competitive, so we’re always committed to providing development,” it said.

In turn, its customers are always receiving the most up-to-date engineering solutions.

Charles D. Kabulo, Degrita Holdings CEO

time injury (LTI) was recorded, which Ivanhoe Mines proudly states is “a rare industry accomplishment”. The lost time injury frequency rate (LTIFR) and total recordable injury frequency rate (TRIFR) for the project were both zero.

Including the smelter and other associated infrastructure projects included in the Phase 3 expansion, over the total 40-million-man hours worked to date, only four LTIs have been recorded and nine recordable injuries.

The health and safety performance set by the engineering and contractor teams is industry-leading with a LTIFR and TRIFR of 0.10 and 0.22 per 1,000,000 man-hours

worked, respectively. For comparison, the 2022 International Council on Mining and Metals (ICMM) mining industry average was 2.66 per 1,000,000 man-hours worked. Establishing a Long-Term Logistics Agreement

In February 2024 Kamoa Copper announced an agreement with Trafigura, one of the world’s largest commodity suppliers, to transport minerals via the Lobito Atlantic Railway for a minimum term of six years.

Lobito Atlantic Railway is a new importexport trade route between the African Copperbelt and Angola’s Atlantic coast, with this agreement marking the first

long-term commercial commitment to the railway.

Speaking on the agreement, Robert said: “The transformative economic corridor will unlock more copper projects due to the lower logistical costs. Cheaper logistics increase the amount of economically recoverable copper across the Copperbelt, as cut-off grades can be lowered. This makes a significant impact on discoveries made in the DRC, such as the recent highgrade and open-ended Kitoko copper discovery in the Western Foreland, where we are stepping up exploration activities this year to find more ultra-green copper metal. Kitoko is located only 30 kilometres from the existing rail line,”.

KAMOA COPPER MINING

Mining with a Greater Purpose

Kamoa Copper’s vision is to build a sustainable legacy in the DRC through environmentally and socially responsible copper mining.

“Sustainability is at the heart of everything we do,” shared Chairman, Ben Munanga. Sustainability is also inextricably linked to Kamoa Copper’s company values: sustainable growth; united in diversity; and to thrive.

“Kamoa Copper acknowledges that our impact on the United Nations Sustainable Development Goals (SDGs) could shape our long-term strategy, enhance dialogue

Excellence in Human Resource Management, Serving Since 2014.

MD Services is a 100% Congolese Company specialized in staff recruitment and the management of Human Resources which, over the year, has built a flawless reputation throughout the entire DRC and has become the leading company of several operating companies in DRC, particularly, in the mining sector, cement, oil, and exploration.

MD SERVICES SARL

MD SERVICES Sarl, is a 100% Congolese Company, registered under the laws of The Democratic Republic of The Congo and operating in the Labour broking of Local and Expatriate Staff outsourcing as well other associated services.

MD SERVICES Sarl is therefore specialized in:

• Recruitment, placement and management of outsourced staff local and expatriate;

• Immigration outsourcing and other relevant documents for expats;

• Supply of Personal Protective Equipment “PPE”

• Any other services relating to personnel management.

MD SERVICES Sarl has established itself as a major player, for many companies operating in The Democratic Republic of The Congo especially in the mining, cement and hydrocarbon sectors (upstream and downstream). With its range of clients, the company has developed a real relationship and lasting trust. By way of illustration, MD SERVICES Sarl successfully supports major mining projects in The DRC, carried out by the large worldrenowned firms such as the KIBALI GOLD MINE Project, one of the branch of the multinational BARRICK GOLD as well as the TENKE FUNGURUME MINING project (TFM), the IVANHOE MINES project (Kamoa Project), and so on.

MD SERVICES Sarl also continue to assist big companies like BOART LONGYEAR, OREZONE DRILLING and many others in their drilling work at all stages of mining projects as well as in other services related to mining activities.

For this year, MD SERVICES Sarl has set the following main objectives:

• attract and support the maximum possible number of investors in The DRC in general and in particular, those working inthe mining sector, the reason for its participation in multiple international conferences;

• expand its activities in other countries of the continent such as UGANDA, SOUTH AFRICA, MAURITIUS and the big island of MADAGASCAR to get open up to the world.

It is for such a reason that MD SERVICES Sarl, on the side-lines of the “Prospectors and Developers Association of Canada, PDAC 2020”, an international mining conference that brings together all the major economic operators and decision-makers in this sector, has organized in 2020 at The Intercontinental Hotel and in 2023 at Fairmont Royal York in Toronto, business meetings which gathered several mining operators of the world not only in a purpose to connect them to different business opportunities in The DRC, but to reassure them also about a better support in Human Resources Management.

For the first time in this context and the proudness of the Democratic Republic of The Congo, Mr. Didi MUDOGO, a Congolese operator and the Managing Director of the MD SERVICES Sarl, has taken the initiative to raise the country’s Flag very high. Through this occasion a business lunch was organized and shared in order to discuss the available opportunities offered by The DRC, a country with a highly mining vocation. During that lunch meeting, several DRC officials and experts spoke on thesubject, as well as BARRICK CEO, Dr. Mark BRISTOW, who emphasized the importance for multinationals to work with local entrepreneurs not only for their emergence, but also because no project can establish itself and prosper effectively inthe host countries without the involvement of local entrepreneurs.

The vision that MD SERVICES Sarl sets itself is to bring together as much as possible all the major investors of the world and thus attract them more to come and invest their capital in The DRC in order to create more business opportunities for local entrepreneurs, the availability of employment for the Congolese people in order to contribute to the emergence of The DRC.

MD SERVICES Sarl: “TheStaffmanagementfocusedontheResult”.

In order to fight the scourge of unemployment shared by all our companies, all experts are looking for solutions. If the magic recipe has obviously not yet been elaborated, here and there, miles away from the official cenacles, we nevertheless notice significant advance in terms of social progress through the implementation of certain organizational structures that engage in activities that can make a difference.

To change the course of things is to take a problem head-on and make effort to try to solve it. “A well-posed problem is a problem half solved,” said the mathematician Henri Poincaré. It is in this context that MD SERVICES Sarl wrought its battle by posing the equation in these terms: how to ensure that the mass of workers in the DRC accesses a stable and sustainable job? In other words: how to put in relation and in adequacy the companies and the human resources, the multiple needs of the economic world and the proper obligation to each one to improve humankind?

For this purpose, under the managerial policy of its founder, Mr. Didi MUDOGO, was born and flourishing since 2005 MD SERVICES Sarl, a company specialized in the outsourcing and management of human resources. MD SERVICES Sarl has built a solid reputation and has become the key player to a growing number of companies active in the mining, cement, construction, logistics and other sectors. Due to the high quality of its services, MD SERVICES Sarl has a proven track record in recruiting and managing local, national and expatriate staff to the satisfaction of its clients as well as its multiple employees. This allowed the company to be trusted by its rigorous and demanding clients, promoters of large-scale projects in the various sectors mentioned above.

MD SERVICES Sarl doesn’t rely on this “connection” between companies and the population. Its mission is to target the needs and specificities of a given sector, develop profiles, select skills and train staff accordingly. For this purpose, MD SERVICES Sarl wrought partnerships with world-renowned companies specialized in training and building staff capacity to act as a powerful lewis for its clients.

MD SERVICES Sarl also offers its expertise and knowledge of the business sector, which none, through its advisory and investor support activities. With representative offices in Kampala (Uganda), in Johannesburg (South Africa) and in Antananarivo (Madagascar), the company operates throughout the Democratic Republic of Congo, valuing local know-how, create and sustain employment in disadvantaged areas of the country.

MD SERVICES Sarl stands out, for all these reasons, as “the” privileged partner to investors wishing to set up business in the DRC and tomorrow in other countries of the continent. Beyond its solid expertise and its vast database, credibility as well as the reliability of its services, all this ensure the smooth running of business processes and negotiations.

As a result of the innovative nature of the strategy and the effectiveness of its approach methods, MD SERVICES Sarl was awarded as “Best Outsourcing Company and HR Manager of the Year 2015 - 2016” during the DRC Mining Week.

“The practical and customized solution for the staff management with focus on the RESULT“ remains the motto of the company.

Other than the aforementioned, MD Services is currently on a training project in favor of selected fresh graduates in the move to foster a nucleus of young talents to serve as key personnel in future at the Kamoa Smelter, deemed to be the premier & high-tech smelter in the region for world class production of precious metal. www.md-drc.com

with our stakeholders, and support our licence to operate,” said Ben.

Its environmental governance priorities are driven by its objectives of contributing to the achievements of the following UN SDGs: Clean Water and Sanitation; Responsible Consumption and Production; Life on Land; Climate Action.

For waste management, Kamoa Copper employs tailings management which involves the storage and management of the finely-ground rock, fine mineral particles and water separated from ore minerals during the milling process.

“Kamoa Copper has taken a very low risk approach to how we manage our tailings and aim to meet or exceed global good practice for safe tailings management,” said Ben.

Kamoa Copper plans to minimise the surface storage and management of tailings from its mining operations by storing it underground in the mined-out workings.

“The mine has a relatively small environment-footprint because approximately half of the tailings will be mixed with cement and pumped back underground to fill voids and help support the underground mining infrastructure,” Ben added.

Further to the mine’s tailings management, Kamoa Copper understands that limiting the environmental impact and the carbon footprint of its mining operations is key to mitigating the effects of climate change.

LA TREVE Group PTY LTD: A Pioneering Force in

Supply Chain Management and Civil Engineering

Founded in 2015 in South Africa, LA TREVE Group PTY LTD embarked on a mission to revolutionize the sectors of supply chain management and civil engineering. With a foundational commitment to excellence and innovation, the company has steadfastly grown, expanding its services and geographical reach, particularly focusing on meeting the rising engineering service demands in the Democratic Republic of the Congo (DRC).

Expansion into the DRC: Acknowledging the burgeoning demand for specialized engineering and supply chain management services in the DRC, LA TREVE Group strategically began collaborations with select companies within the country starting in 2017. This significant move was not merely an expansion but a testament to the company's adaptability and commitment to addressing the needs of diverse markets. In April 2020, this expansion culminated in the establishment of LA TREVE SARL, a milestone that marked the beginning of a new chapter as a 100% Congolese company, showcasing an impressive commitment to local development and expertise.

Registration and Compliance

In its dedication to legal compliance and ethical business practices, LA TREVE SARL achieved registration with the ARSP, affirming its status as a fully recognized and compliant entity within the Congolese corporate landscape. This registration is not just a legal formality but a reflection of LA TREVE's commitment to transparency, quality, and regulatory compliance, essential pillars that guide every aspect of its operations.

Services and Expertise: LA TREVE Group has carved a niche in providing top-tier services in supply chain management and civil engineering. The company employs a holistic approach, integrating innovative strategies and technologies to streamline supply chain processes and deliver cutting-edge engineering solutions. Whether it's a complex infrastructure project or optimizing logistics operations, LA TREVE is equipped with the expertise, tools, and dedication to achieve exceptional outcomes.

Commitment to Quality and Sustainability:

Understanding the importance of sustainability and quality in today’s market, LA TREVE adheres to strict standards, ensuring that all projects and operations are not only efficient but also environmentally responsible and sustainable. This approach has not only earned the company accolades but also the trust and loyalty of a growing list of esteemed clients.

Future Outlook: As LA TREVE Group continues to build on its successful legacy, the company remains focused on innovation, customer satisfaction, and strategic expansion. With a robust foundation in South Africa and a flourishing presence in the DRC, LA TREVE is poised to scale new heights in the realms of supply chain management and civil engineering.

LA TREVE Group PTY LTD represents a beacon of excellence and innovation in the industry. From its humble beginnings in South Africa to its significant expansion in the DRC, the company has demonstrated an unwavering commitment to providing top-notch services, adhering to the highest standards of ethics and quality. As it moves forward, LA TREVE continues to be driven by a vision of growth, excellence, and a dedication to serving the needs of communities and businesses alike.

Electrical, Civil and Mechanical Engineering

Complete Engineering solutions for both government and the private sector.

LA TREVE Group PTY LTD was established in South Africa in 2015 with the primary objective of providing supply chain management and civil engineering services, and has grown over time with the increasing demand for engineering services in the Democratic Republic of Congo.

A NEW ERA OF PERFORMANCE

SES’s satellite-enabled connectivity solutions are powering digital transformation in enterprises across the globe, including the Kamoa-Kakula Copper Complex project in Africa.

Our multi-orbit network enables the seamless delivery of new services and applications, improving safety, digitalising operations, and maximising profitability in mining operations.

ABOUT SES

SES has a bold vision to deliver amazing experiences everywhere on earth by distributing the highest quality video content and providing seamless data connectivity services around the world.

As a leader in global content connectivity solutions, SES owns and operates the world’s only geosynchronous orbit and medium earth orbit (GEO-MEO) constellation of satellites with the unique combination of global coverage and high performance. By leveraging its vast and intelligent, cloud-enabled network, SES delivers high-quality connectivity solutions anywhere on land, at sea or in the air, and is a trusted partner to the world’s leading telecommunications companies, mobile network operators, governments, connectivity and cloud service providers. SES’s video network enables broadcasters, video platform operators and content owners to deliver managed media services for both linear and non-linear content. Its network of over 6,400 channels reaches 363 million households worldwide. The company is headquartered in Luxembourg and listed on Paris and Luxembourg stock exchanges.

DIGITAL MINING SOLUTIONS

In the mining industry, reliable connectivity is of exceptional importance since mining sites are often in remote locations. Connectivity delivered over SES’s 70 satellites can enable mining crews in these sites to access cloud-based applications and upload critical data, improving profitability of its extraction, overall productivity, visibility and safety. The same connectivity also enables the crew to stay connected with their families who are often located thousands of miles away.

For more information, visit www.ses.com

ISA SAS: Your Reliable Partner for Industrial Supplies in the DRC

Optimizing Your Operations in Lubumbashi, Likasi, Kinshasa, Kolwezi & Kalemie

Established in 2015, ISA SAS is your one-stop shop for all your industrial supply needs in the Democratic Republic of Congo. We take pride in being a local and reliable partner, understanding the unique challenges businesses face in the region. Our commitment is to provide you with top-quality products and complete solutions under one roof, streamlining your operations and ensuring success.

Why Choose ISA SAS?

Trusted Local Partner: With over 9 years of experience serving the Democratic Republic of Congo market, we possess a deep understanding of the local business landscape and its specific requirements. Our team is dependable, offering expert advice and exceptional customer service whenever you need it.

Quality Brands You Can Rely On: We partner with industry leaders to ensure you receive the best possible products. Our comprehensive range includes:

• Fuchs Lubricants: Keep your machinery running smoothly with top-tier lubricants from a world leader in lubrication technology.

• Baldwin Filters: Protect your equipment with high-performance filters for optimal performance and longevity.

• Lincol & Meclube Lubrication Systems: Maximize efficiency and minimize downtime with automated lubrication systems designed to keep your operations running smoothly.

• ISA Flex Hydraulic Hose Fabrication: Our team of experts can custom-build hydraulic hoses to your exact specifications, ensuring a perfect fit for your needs.

• AFS Fire Solutions: Ensure the safety of your workplace, home, & important places with fire protection solutions from AFS.

• Thundermax Batteries: Power yodur equipment reliably with high-quality batteries designed for long-lasting performance.

• Wynn’s Car Care Products: Maintain your vehicles in top condition with a comprehensive line of car care products to keep them running smoothly.

• Milwaukee Power Tools: Get the job done efficiently with professional-grade power tools built to tackle any challenge.

Complete Solutions, Not Just Products: At ISA SAS, we go beyond just supplying products. Our team of experts can assist you in designing and implementing complete solutions tailored to your specific needs. Whether you require assistance with lubrication system installation, fire safety plan development, or selecting the right tools for the job, ISA SAS is here to support you every step of the way.

Convenience and Streamlined Procurement: Save time and resources by sourcing everything you need from a single supplier. Eliminate the hassle of dealing with multiple vendors and simplify your purchasing process, making it more efficient and cost-effective.

Partnering for Success

By choosing ISA SAS, you gain more than just a supplier; you gain a trusted partner committed to your success. With our local expertise, unwavering commitment to quality, and comprehensive solutions, ISA SAS is the perfect choice for all your industrial supply needs in Lubumbashi, Likasi, Kinshasa, Kolwezi & Kalemie. Contact us today and let’s discuss how we can help your business thrive.

Contacts : +243 823 612 300 sales@isadrc.com www.isadrc.com

KAMOA COPPER

To support the continued successful performance of its mining complex, Kamoa Copper has signed a publicpartnership with DRC’s state-owned power company La Société Nationale d’Electricité to secure clean, renewable hydro-generated electricity.

“Securing sustainable, long-term electricity is essential in the development of Kamoa Copper into one of the world’s largest copper mines,” said Ben.

In addition, Kamoa Copper has pledged to incorporate state-of-the-art equipment powered by electric batteries or hydrogen fuel cells into its mining fleet, replacing diesel-powered equipment.

www.kamoacopper.com

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