Ivanhoe Mines withdrew its copper production forecasts for the Kamoa-Kakula complex in the Democratic Republic of Congo (DRC). Previously, the firm expected the Congolese complex to deliver between 520,000 and 580,000 tonnes of copper this year, in 2025. Ivanhoe announced the withdrawal on May 26, attributing its decision “to persistent seismic activity in the Kakula mine.”
Initially, Ivanhoe Mines did not revise its production forecasts after the first reports of seismic activity. However, its partner, China's Zijin Mining, stated on May 23 that it expected a “negative impact” on the complex’s production targets for the year. In a corrective statement following Zijin’s announcement, Ivanhoe initially sought to downplay the incident. Now, the company has confirmed that a “revision” of the forecast will soon be made public.
“Seismic activity at the Kakula underground mine has continued intermittently over the past few days [...] Early indications are that seismic activity underground at Kakula could continue for weeks, impeding access to the mine and prolonging the temporary suspension of operations at Kakula,” Ivanhoe explained.
The market reacted sharply to this new information, with Ivanhoe’s share price dropping by 16%. The stock was trading at C$10.76 at 12:37 p.m. local time on the Toronto Stock Exchange.
Kamoa-Kakula is the largest copper mine in the DRC, with the Congolese government holding a 20% stake, and Zijin Mining and Ivanhoe Mines each owning 39.6%.
Emiliano Tossou (Ecofin Agency)
