At the heart of Africa : The DRC

Transcription

1 The D.R. Congo in a context of commodities falling prices - Towards a Strategic Copper? Dieudonné-Louis TAMBWE K. a-m. CTCPM Deputy Coordinator DR Congo Ministry of Mines Lisbon, March 2016

2

3 The Country in brief

4 At the heart of Africa : The DRC

5 Area : sq. km Population : 78 millions inhab. Mining products : 95% exports Mining contribution to revenue : 30%

6 DRC geology, gy, mineral occurrences and major commodities of the copper mine

7 DRC general geology map

8 DRC (geology and) commodity occurrences map Mineral commodities Industrial minerals Nonmetallic As, Sb, Nb, Ta, Sn, W, Ti Al, Fe, Mn Gold Diamond Pb, Zn, Ge, Cd REE, Th U, V, Co Be Mg, Hg, Sr S Ni, Cr Cu Gemstone Ag, Pt, Pd P Zr, Monazite

9 DRC mining A brief presentation Unsurprisingly, gy, mining licences cover almost all the parts of the country where geology gyhas been well assessed and commodities occurrences reported and established.

10 Production statistics for the main mineral commodities ( ) 2015) Year Copper (t) Cobalt (t) Zinc (t) Diamonds (kcts) Gold (Kg) Coltan (t) Cassiterite/ tin oxyde (t) ,462 16,242 15,110 35,207 2, ,585 15,384 33,784 28, ,391 17,886 33,809 28, ,066 42,487 15,318 20, , ,181 56,122 13,765 17, , ,537 83,873 10,362 16, , ,198 95,478 14,994 18, , ,515 86,324 11,571 21,755 2, , ,588 76,517 12,114 16,899 4, , ,030, , ,737 16, ,937 1,217 7, ,069, ,400 12,675 15,781 31,600 2,102 8,304

11 Recent history of Copper mining in DRC

12 Yesterday : Historical locations of major copper extractive opérations (UMHK/GECAMINES) Cu GROUPE OUEST GROUPE CENTRE GROUPE SUD 12

13 DRC copper production : past and present 1,600,000 t 1,400,000 1,200,000 1,000, , , , ,

14 Today : Mining Research and Extractive Operations within the DRC Copperbelt

15 The top-5 copper projects and their proven reserves # Project/Company Major owners Deposit(s) Reserves (t Cu) Ivanhoe Mines, Zijn Mining 1 Kamoa Copper Project Group Co. Ltd Tenke Fungurume Freeport Mc MoRan, 2 Mining, TFM Sarl Lundin/TMC GECAMINES & Chinese 3 SICOMINES Sarl Consortium Katanga Mining 4 Katanga Mining Limited (TSX)/Glencore Kamoa +15 Mt? Kwatebala, Tenke, 10,5Mt Fwaulu Aggr. 69Mt 6,9Mt Kamoto, KOV, 1,5Mt Tilwizembe 5 Frontier Mining Limited ENRC Lufua/Kishiba 1 Mt 6 RUASHI MINING Metorex Ruashi 1Mt

16 Katanga Mining Limited (Glencore Xstrata) Investment : USD +2(?) billions Extractive processes : Open pit and underground mining Ore Concentration Leaching circuits Katanga Mining Ltd, TSX, Electrowinning operates a large-scale coppercobalt project in DRC, through Production capacity y(p (p.a.) : SX/EW JVs, namely Kamoto Copper Currently : +350 kt copper metal Company (KCC), DRC Copper and within concentrates and Cobalt Project (DCP) together with Mutanda and Metallurgical process stopped at Kansuki projects. Kamoto since end 2015

17 Tenke Fungurume Mining Sarl (Freeport Mc MoRan, Lundin) Investment : USD +3 billion US$ Extractive Et ti processes : Open pit mining Ore Concentration Leaching circuits TFM Sarl, listed at thetsx, is Coupling SX/EW currently operating one of the largest copper-cobalt cobalt project in Production capacity (p.a.): DRC, encompassing deposits Currently : kt copper metal located along the Tenke and Expansion to copper metal by Fungurume axis.???

18 Copper, cobalt and zinc production ( ) 2015) 1,200,000 Copper production (t) Cobalt production (t) 1,000,000 Zinc production (t) 800, , , ,000 0

19 Adding value to the copper production ( refined vs. concentrates) 1,600,000 1,400, ,200,000 1,000, ,000 Copper conc.(t) Copper cath(t) Tot copper(t) 600, , ,

20 A base metal with a strategic status

21 Major mining products exportation value ( in Millions of US$) Year Copper Cobalt Zinc Diamonds Gold Tin oxyde Ratio Total Copper/O (MUS$) thers , , , ,040 2, , ,458 2, , ,649 1, , ,107 3, , ,103 3, , ,531 2, , ,938 1, , , , , estimation 2, , ,

22 Average annual copper prices (LME, grade A) After USGS (reviewed 30 Jan. 2015) $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 Unit value ($/t) $2,000 $1,000 Unit value (98$/t) $0 t

23 Major contributors to the DRC Copper Export and 2016 preliminary trends N Mining Companies 'Jan 16 - Average 2015 Balance Copper & Cobalt 2015 Statistics Average 2015 December 2015 January 2016 Jan 16 - Dec 15 Balance (t) (t) Copper, estimated Metal (t) Cobalt, estimated Metal (t) Copper, estimated Metal (t) Cobalt, estimated Metal (t) Copper, estimated Metal (t) Cobalt, estimated Metal (t) Copper, estimated Metal (t) Cobalt, estimated Metal (t) Copper, estimated Metal (t) Cobalt, estimated Metal (t) Copper, estimated Metal (t) Cobalt, estimated Metal (t) 1 BOSS MINING 36, , , , , , CDM 27, , , , , CHEMAF 24, , , , , CIMCO 10, CNMC HUACHIN 5 MINING MABENDE 17, , , , COMILU 10, FRONTIER 59, , , , , GCM 19, , , GTL 6, , HUACHIN METAL 10 LEACH 12, , , HUACHIN MINING 3, KAI PENG MINING 8, , KCC 117, , , , MKM 21, , , , MMG KINSEVERE 81, , , , , MUMI EXPORT 212, , , , , , , , RUASHI MINING 35, , , , , RUBAMIN 9, , SEK 27, , , , , SHITURU MINING 32, , , , SICOMINES , , , SOMIKA 13, , , , , TFM 204, , , , , , , , , , TOTAL 994, , , , , , , , , , Tot. Export ,039, , Preliminary trends -2.81% % % %

24 Preliminary trends for DRC copper export Jan 16 vs. Dec 15 'Jan 16 vs. Average % % 68, , , Average monthly exported copper (t) 2015 Average monthly exported copper (t) December 2015 exported copper (t) January 2016 exported copper (t)

25 Establishing special geological areas for prospection strategic minerals commodities and usingg new research pparadigms g Most welcome, the advent of a national professional Geological Service.

26 Challenges for an optimal and development of copper mining i in the DRC sustainable

27 Energy : the potential ti for an efficient i power network A huge hydroelectric potential (140 GWh) allowing for an useful networking and establishing of web-energy

28 A strong need for a stable, uninterrupted and reliable electricity in a context where production costs need to be drastically lowered. For years now, the power generation capacity has been very small, with many shortage, in spite of a world class hydroelectric potential. This being mainly due to the obsolescence of the existing power plants.

29 Power demand expressed in MW vs. available one for copper- cobalt mining extraction operations (as projected in 2013) MW EVOLUTION DE LA PUISSANCE DISPONIBLE ET DE LA DEMANDE AU KATANGA Required power 1000 Available power

30 A strong need for new sources of energy to meet the demand of current and future copper mining projects MW 100 DEFICIT ENERGETIQUE AU KATANGA

31 New developments regarding the solving of the energy issue... The DRC electricity sector previously monopolized by the national power corporation has been liberalized and is becoming open to other operators. Building new micro power plants and the development of renewable energy are particularly welcome. Through a PPP (private-public partnerships) scheme involving i private investors or mining ii companies and the national power corporation (S.N.EL) many old power plantsarebeing refurbished.

32 Transportation and infrastructure challenges Optimizing transportation of mining products (roads, railway) across the country, taking advantage of subregional (Southern and Central Africa) connectivity initiative projects where they exist. Taking also advantage of the potential for a national multimodal transport scheme Building warehouses

33 3/9/2016 Obrigado pela atenção