CITIC, Zijin Mining sign agreement with Ivanhoe to revamp DRC’s Kakula mine

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CITIC Metal Africa and Zijin Mining each have signed standstill agreements with Ivanhoe Mines to restore Kakula mines back to production. The agreement also covers a stipulation to advance subsequent, planned expansions at Kamoa-Kakula, and production at the Kipushi and Platreef projects.

Ivanhoe’s entire shareholder base will benefit from the economic growth and significant cash flows that result from the dawning of production at all three mines. With the receipt of the combined proceeds of approximately US $509m from CITIC Metal Africa and Zijin, Ivanhoe now holds cash, equivalents and a loan receivable from High Power Exploration totaling US $902m.

This strong financial position will enable Ivanhoe to fully finance its share of the capital costs required to bring the Kakula Mine in the Democratic Republic of Congo (DRC) into commercial production, as well as advance the development of the Kipushi and Platreef mines, and Western Foreland exploration project.

Development of the underground 6 Mtpa Kakula Mine, the first of multiple, planned mining areas at Kamoa-Kakula, is making steady progress in underground development and construction of the surface processing plant has commenced.

Initial copper concentrate production from the Kakula Mine currently is scheduled for the third quarter of 2021.

According to co-chairman of Ivanhoe Mines Robert Friedland, the investments completed comfortably provide Ivanhoe with the equity cushion required to rapidly advance Kamoa-Kakula’s 6 Mtpa Phase 1 mine to production. He further added that CITIC and Zijin’s vote of confidence positions the mining company to continue the rapid development of the Kipushi and Platreef projects.

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