Copper mining business with a SX-EW plant in Kazakhstan

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Kazakhstan
Mining industry
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23
  • Copper mining business with a SX-EW plant in Kazakhstan
  • Copper mining business with a SX-EW plant in Kazakhstan
    Copper mining business with a SX-EW plant in Kazakhstan
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    Copper Mining Business with a SX-EW plant (JORC certified) in Kazakhstan is for sale.

    This deposit has been key feeder for the giant Balkhash smelter, responsible for 65% of Kazakhstan’s copper production. Dumps of over 300 mln ton accumulated from 40 years of operation.

    Resource analysis

    • Wardell Armstrong (MRI, PCR) 2020

    During 2015-2016 the company undertook exploration:

    • Reverse circulation (RC) drilling – 47 holes
    • Surface pitting – 141
    • Toe pitting – 26
    • More than 900 ore samples

    SX-EW plant results

    • The pilot plant commissioned in autumn 2017 and produced first copper in November 2017.
    • Following remedial work on the leaching pad and collection system in spring of 2018, the plant has reached a steady-state production with PLS ERE grcae of 1.5-1.6 g/L, and average daily production of 200 kg of copper cathode
    • Over 36 tons of cathode copper sold on the local market at near LME prices.
    • 1.2 km electric line fo the site and 630 kW transformer — completed and connected fo local electric grid
    • 400 m access road to the site — completed
    • 1.1 km water pipeline fo the site — completed
    • Building for the SX-EW pilot plant — completed, insulation and ventilation installed
    • 1 km of piping for the heap irrigation — purchased, connected and laid out
    • Ponds and collection trenches — completed and lined with geomembrane

    SX-EW Business Model

    • Planned annual production: 10,000 tons of LME grade “A” cathode copper
    • A 23-year copper production contract with the government of Kazakhstan signed in May 2017.

    Key production cost drivers:

    • Chemicals & Reagents and Power (variable) — favorable geographic location helps keeping these costs low
    • Labor and Production Overheads (fixed)
    • Mineral Extraction Tax @ 5.7% on value of copper in PLS
    • Distribution & Selling — mix of fixed and variable driven by local Infrastructure and T&C of the oft-take contract

    100,000,000 $
    713,918,985 ¥
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