KGL Resources: Capital Efficiency

Capital Intensity in Recent Copper Projects
Capital intensity refers to the capital cost required to achieve a certain level of annual copper production, typically expressed as:US$ per tonne of annual copper production capacity.

Historical and Current Benchmarks1990–2005: Average capital intensity was approximately US$5,500 per tonne of annual copper production capacity.
Recent Projects: Capital intensity has increased significantly, with recent projects costing around US$15,000 per tonne of annual copper production capacity.

Capital Intensity Comparison (US$/tonne of annual copper production capacity)

Project / Company Capital Intensity (US$/tpa Cu) Notes
BHP – Escondida Expansion (Chile) ~$23,000 Investment of $10–14B to counteract ore grade declines
Capstone Copper – Santo Domingo (Chile) ~$21,900 Initial capital cost of $2.3B
McEwen Copper – Los Azules (Argentina) ~$16,880 Initial capital expenditure of $2.462B
Faraday Copper – Copper Creek (USA) ~$15,600 Capital intensity based on feasibility study
Highland Copper – Copperwood (USA) ~$9,000 Based on updated feasibility study results
KGL Resources – Jervois Project (Australia) ~$8,000 Capital intensity as per feasibility study

KGL’s Jervois Project, at US$8,000/tpa, remains well below the recent project average and significantly under the cost profiles of peers. This strengthens its position in funding discussions and enhances its overall value proposition.

I’ve done my best to estimate the capital costs using public info, but can’t guarantee full accuracy. Treat this as a guide—not a final figure.

If you know of any other recent copper projects with published capital intensity figures, feel free to share them here. I’m keen to build a more comprehensive comparison with KGL's Jervois Project.