Ivanhoe Mines Revives Kipushi Mine After 31-Year Pause

Ivanhoe Mines' Executive Co-Chair Robert Friedland and President Marna Cloete announced on July 2, 2024, the completion of construction and the restart of the historic ultra-high-grade Kipushi zinc-copper-lead-germanium mine in the Democratic Republic of the Congo (DRC). This milestone comes 100 years after the mine's initial operation and 31 years since it was placed on care and maintenance. The first ore feed into the new concentrator occurred on May 31, 2024, followed by the production of the first concentrate on June 14, 2024.

Contracts have been secured for the purchase of Kipushi's high-grade zinc concentrate with CITIC Metal (HK) Limited of Hong Kong and Trafigura Asia Trading of Singapore, with more agreements expected in the coming months. Moreover, financing facilities amounting to $170 million have been arranged by CITIC Metal, Trafigura, and First Bank DRC of Kinshasa, DRC, with $50 million already drawn.

Kipushi Corporation SA (KICO) is 68% owned by Kipushi Holding, a wholly owned subsidiary of Ivanhoe Mines, while the remaining 32% is owned by Gécamines. According to the Joint-Venture Agreement announced on January 16, 2024, between Kipushi Holding, KICO, and Gécamines, Gécamines will gradually increase its share capital and voting rights in KICO over time, subject to fulfilling certain conditions precedent.

Ivanhoe Mines’ Founder and Executive Co-Chairman Robert Friedland remarked: "Reviving the historic Kipushi zinc-copper-lead-germanium-gallium mine in collaboration with our DRC state-owned joint-venture partner Gécamines, a century after its initial operations, is a remarkable achievement. This modern milestone, ahead of schedule, is a testament to our dedicated operations team, the people of the Democratic Republic of the Congo, and the local community in Kipushi Town. We extend our heartfelt congratulations to everyone involved, particularly the hardworking Congolese workforce, for their exceptional contributions. Kipushi is set to become one of the world’s top producers of high-grade, low-emissions zinc and associated metals. The mine will follow in the footsteps of Kamoa-Kakula, serving as a leading employer and social catalyst for the region while upholding Ivanhoe’s commitment to strong community relations and sustainability."

“The Kipushi mine highlights the growing significance of the Democratic Republic of the Congo as a crucial provider of high-quality strategic minerals for global markets. This mine exemplifies the exceptional quality of the ore body and workforce that make the Central African Copperbelt an ideal location for world-class mining operations. We are proud to witness the revival of this legendary mining site after three decades. Kipushi, alongside Kamoa-Kakula, is a significant addition to Ivanhoe’s expanding green metals portfolio. This milestone is a vital step in our ambitious goal to become the world’s next leading diversified major mining company.”

Gécamines’ Chairman, Guy-Robert Lukama Nkunzi, expressed pride in the revival of the Kipushi Mine after more than thirty years of inactivity, highlighting the positive impact on the population of Haut-Katanga Province. This achievement demonstrates Gécamines’ dedication to revitalizing mining activities and fostering community development in the region.

"The Kipushi Mine stands out not just for its high zinc grades but also for its potential to produce other critical metals. While only the Big Zinc deposit has been certified so far, the mine holds great promise for additional valuable resources essential for global industries. The successful renewal of the KICO project, in collaboration with our partner Ivanhoe Mines, showcases their unwavering commitment and expertise in bringing the site back to life. This partnership has undergone significant restructuring, enhancing Gécamines' role in the project’s governance. Our increased shareholding provides greater influence over key decisions, the opportunity to acquire KICO’s products for local processing, and the potential to become the majority shareholder once the Big Zinc deposit is depleted.

These accomplishments align with President Félix-Antoine Tshisekedi Tshilombo’s vision for the Democratic Republic of Congo to engage in balanced mining partnerships, positioning our country as a key player in the global transition to green energy."