The Mutoshi Project is fully permitted and will be operated using similar mining and processing techniques that Chemaf SA already employs at its other operations. It will utilise open pit mining and SX-EW process technology, is designed to produce 50,000 tonnes per annum (“tpa”) of LME grade copper and 16,000 tpa of cobalt (in the form of cobalt hydroxide), over an initial 7 years of mining from the Mutoshi North and North East pit and 10 years of processing this ore. The Project benefits from substantial additional resources to extend the mine life by over ten years.

The Mutoshi project is contained within the boundaries of permit PE2604 (held by Gécamines however leased to Chemaf) and PE2756 (held by Chemaf). Both are ‘Permis d’Exploitation’ or mining permits. The table below sets out the key terms of these two key permits.

Under the terms of the DRC’s 2018 Mining Code (No.18/004/09Mars 2018), a Permis d’Exploitation grants the title holder exclusive rights to undertake, within the perimeter of the mining permit, exploration, development and mining of any, and all, mineral substances for which the license has been issued.

Chemaf has secured a 25-year lease contract over PE2604, giving it the rights to mine and process ore from the concession. In exchange for these rights, Chemaf was required to pay Gécamines US$52.5 million over 3 years (paid) and is also required to pay a 2% royalty (on gross revenues) to Gécamines.

Mutoshi environmental licences for PE2604 and PE2756 were issued by the authorities on 30th October 2017, no. 263/DPEM/2017; 059/CPE/2017 and 060/CPE/2017.

Additionally, Chemaf has three other licences; Makala (PE4613); and Dianda (PE2350 and PE529) which will potentially increase the mine life.

The Project is centred on approximate latitude 10°40’42”S and longitude 25°32’07”E (or UTM WGS84 – 340000 mE / 8819250 mN). The Project location is shown in the figure below.

The city of Lubumbashi in the DRC, located 300 km east of the Project, can be accessed by an international airfield (Luano International Airport). Alternatively, there is an international airport at the Zambian city of Ndola, 200 km south-east of Lubumbashi.
The closest major town to the Project is Kolwezi, 5 km to the southwest. There are regular flights from Lubumbashi to Kolwezi, with a flying time of approximately 45 minutes.

The flowsheet for the Mutoshi Project is set out below: