The construction of Koryx Copper Inc.’s Haib Copper Project in southern Namibia is expected to cost US$1.557 billion (N$28.8 billion), according to the company’s updated Preliminary Economic Assessment (PEA).
The estimate includes US$968 million (N$17.9 billion) for construction capital, US$33 million (N$611 million) for capitalised pre-stripping, US$29 million (N$537 million) in mining capital, US$301 million (N$5.6 billion) for surface infrastructure, and a contingency of US$139 million (N$2.6 billion).
Sustaining capital over the life of mine is projected at US$543 million (N$10 billion).
The Haib project, located near the South African border, was described by Koryx as a “simple, scalable, advanced-stage, open-pit sulphide Cu/Mo project.”
It was formerly owned by Rio Tinto and Teck and is planned as an open-pit milling and flotation operation, supplemented by heap leach production.
Based on the 2024 Mineral Resource Estimate, the PEA reports a post-tax net present value (NPV8%) of US$1.35 billion (N$24.9 billion) and a pre-tax value of US$2.36 billion (N$43.6 billion).
The project has a projected mine life of 23 years, producing an average of 92,000 tonnes of payable copper annually during the first decade.
The assessment indicates a post-tax internal rate of return (IRR) of 20.1% and a payback period of 3.9 years.
Koryx Copper President and CEO Heye Daun said the objective of the PEA was to right-size and optimise the project while underlining the company’s undervaluation compared to other copper development equities.
“We are highly encouraged with the very good results of this PEA, notwithstanding the fact that it is still based on the 2024 Mineral Resource model and does not yet reflect all of the excellent drill results produced since late 2024,” he said.
“With a copper production rate of 92,000 tonnes per annum, a post-tax NPV8% of more than US$1.35 billion (N$24.9 billion), upfront capital cost of US$1.56 billion (N$28.8 billion), low C1 cash costs of US$1.81 (N$33) per pound, AISC of US$2.05 (N$38) per pound during the first 10 years of production, and a long mine life of 23 years, Haib stands out as an emerging, top-quality, near-term African copper development project.”
Daun said Haib’s competitive strengths include its location, scalability and low-risk profile.
“What makes this project truly unique are a few of its key attributes, namely its simplicity, scalability, low risk, ideal location at low altitude, close to water and power infrastructure, with low capital intensity, low operating costs, a predictable permitting environment and lack of any technical, environmental or social fatal flaws. This suggests that this project could be rendered shovel-ready, with an advanced feasibility study, secure water and power supply and most major permits in place within just a few years,” he said.
He added that the project benefits from a highly experienced technical team. “Led by a strong and motivated technical team that has the drive and in-country experience of having recently advanced and permitted a major gold mine development in Namibia, we look forward to successfully delivering another excellent large-scale mine development project in Namibia — our third in the past 15 years,” Daun said.
The company has submitted its mining licence application, while environmental and social impact studies are progressing.
Koryx said public consultations have so far been positive, with communities highlighting interest in job creation and wider economic development.
