Toronto-based First Quantum Minerals has approved the Enterprise nickel project and the S3 expansion of its Kansanshi copper-gold mine, both in Zambia.
The decision reflects the company's increased confidence in Zambia's investment climate, chief executive Tristan Pascall said.
The S3 expansion will extend the mine life for another 20 years, Pascall said.
Work on the extension will begin immediately, he said.
"The company is recommencing detailed engineering works for the S3 expansion to determine purchase orders for key long-lead items, including the SAG mill, ball mill, and in-pit crushing station," Pascall said.
When completed, Kansanshi will have a standalone 25 million tonne per annum processing plant and a larger mining fleet. Total throughput will increase to 53 Mtpa, with production averaging approximately 250,000 tonnes per annum for the remainder of the mine life.
With the expansion, Kansanshi is expected to operate until 2044.
First Quantum will need to complete engineering design works, and the procurement and installation of equipment, electronics, controls, and infrastructure.
Equipment includes a 28 MW SAG mill and a 22 MW ball mill.
First Quantum will increase the Kansanshi's smelter throughput capacity from 1.38 Mtpa to 1.65 Mtpa. This will increase production to over 400 Ktpa of copper anode.
Expansion of Kansanshi will cost US$1.25 billion, of which US$900 million will be spent on the S3 plant and mine fleet.
The Enterprise nickel deposit contains proven and probable reserves of 34.7 million tonnes of ore at 0.99% nickel.
The mine project consists of one open pit and one extension at the southwest, and will use the 4 Mtpa nickel circuit built as part of First Quantum's Sentinel mine processing complex. First Quantum estimates it will take 12 months for development. Enterprise is estimated to produce an average of 30 Ktpa of nickel at full production.
Total cost expenditures for development are expected to be US$100 million. First production of 5,000 tonnes to 10,000 tonnes is anticipated in 2023.
First Quantum expects to power both the S3 expansion and the Enterprise nickel mine with renewable sources, which includes both Zambian hydropower and potential wind and solar projects.
