DCP copper/cobalt refinery contract at Kolwezi awarded

The refinery portion of the DCP (KOV) Project has been awarded to Bateman Engineering N.V. under a contract covering the front-end engineering design of a new copper / cobalt refinery to be established near Kolwezi in the Democratic Republic of the Congo (DRC). The project is a 75 / 25 % venture between Nikanor, recently listed on London’s AIM stock exchange and Gecamines, the DRC state company that operated the original mines.

The new refinery will be built adjacent to an old existing refinery at the village of Luilu, some 15 km west of Kolwezi and 6 km west of the KOV (Kamoto-Oliviera-Virgule) pit. It is part of the DCP Project, intended to restore production at the KOV mine and the Kolwezi Concentrator (KZC) that has greatly declined since the 1980’s.

The refinery will be one of the largest copper producers in the world, annually treating 4,800,000 t of KOV ore and 216,000 t of KZC oxide concentrate, originating from the Tilwezembe and Kananga mines, to produce 250,000 t of LME Grade ‘A’ copper cathode and 27,500 t of cobalt as oxide salt. Production is scheduled to start in 2009 and would reach 100 % production capacity within an 18-month ramp-up period.

The KOV pit contains predominantly oxide ore that, by world standards, is high-grade with an average copper grade of 5.21 %, compared to plants elsewhere operating successfully on a feed grade of less than 1 %.

Project scope

The objective of the first phase of the project is to establish the final scope of the project before proceeding to the main refinery project. Bateman Engineering will develop the process and flow diagrams, complete the basic engineering for the refining complex and place urgent contracts as well as order long-lead equipment during
this period.

The new refinery

The refinery is to be based on proven technology, atmospheric acid leaching of the oxide ore, solvent extraction and electrowinning, drawing primarily on experience gained on other copper refineries as well as on Bateman Engineering’s recent experience on similar projects such as Sepon in Laos. The test campaigns being conducted in tandem with the design work will be used to firm up the process route.

On-site infrastructure will also be provided for the refinery and provision made for the eventual installation of sulphide flotation and pressure leach sections. Strict safety standards will be maintained and the refinery will be built to first-world environmental standards.

The project team will have to account in its planning for the poor road and rail infrastructure of the region. In addition, the electrical supply from the supply grid in the area will have to be increased.

Feasibility studies

Bateman Engineering has been involved in this project since 2003, when it commenced desktop studies that were completed in 2004 and indicated the viability of these copper and cobalt assets. In early 2005 Bateman Engineering conducted a pre-feasibility study to establish a database on these ore bodies and existing plants and the extent and cost of the work that would be required to rehabilitate them in line with a 5-year operating plan that was then proposed.

In December 2005, Global Enterprises Corporate Ltd (GEC), now wholly owned by Nikanor, appointed Bateman Engineering to manage the refinery section of the feasibility study of the overall project, in collaboration with GEC and other specialised consultants, to evaluate the merits of building a dedicated greenfields copper / cobalt refining complex for the treatment of the KOV ore. The major project risks were also identified and assessed.

At this stage the capital cost of the refinery is estimated to be US$650 million.

The new refinery could employ approximately 500 full-time operators. This will have a significantly beneficial impact on the local economy, which has been in decline for many years.

More information on the project may be obtained from Ian Martin, Senior Project Manager, on +27-11-899-9111 or email BaseMetals@BatemanEngineering.com.