MINING (133)
The Kamoa-Kakula complex produced 45,019 tonnes of copper concentrate in November 2024. Ivanhoe Mines, the facility’s owner, disclosed the output on December 3; it is the highest monthly volume produced this year. From January to November 2024, the Congolese complex delivered 390,061 tonnes of copper concentrate.
Since the commissioning of a third concentrator at the site last June, Kamoa-Kakula has consistently broken its monthly production records. The mine is expected to deliver between 425,000 and 450,000 tonnes in 2024, compared to 393,551 tonnes in 2023. The complex is set to produce even more next year than this year. Kamoa-Kakula has recently achieved an annual production capacity of 600,000 tonnes.
Kamoa-Kakula is a joint venture with Zijin Mining (39.6% stake), China CITIC Bank, and Ivanhoe Mines as its major investors; Ivanhoe is the largest shareholder (39.6% stake). While the mine's production is subject to sales agreements with Chinese companies, the Congolese government has recently expressed its intention to participate in the buyer selection process.
"The State must get involved so that it can guarantee the credibility of the organized bidding process and be confident that any future buyer selection process will enable Kamoa Copper SA to receive competitive bids and obtain the best possible terms for the sale of its products," states the minutes from the Council of Ministers meeting held on October 4.
The increase in copper production at Kamoa-Kakula is part of a broader upward trend in Congolese copper output. Following a 13.5% increase in 2023, BMI forecasts that DRC copper production will grow by a more modest 4.5% in 2024, bringing total output closer to 3 million tonnes. With Peru targeting 2.8 million tonnes this year, the DRC is set to maintain its symbolic status as the world's second-largest copper producer.
Emiliano Tossou
Australia's AVZ Minerals has announced that it has secured $15 million in funding from Locke Capital, a specialist in litigation finance, to support its legal efforts surrounding the Manono lithium project in the Democratic Republic of Congo (DRC). This financing will cover costs associated with several international arbitration proceedings initiated by AVZ, particularly concerning disputes with the Congolese authorities and partners such as Zijin Mining and Cominière over the PR 13359 exploration permit. This permit, which covers part of the Manono project, is central to a dispute submitted to the International Centre for Settlement of Investment Disputes (ICSID).
The funds will be allocated to cover legal fees, arbitration costs, and other expenses related to ongoing litigation. AVZ backs the financing with its assets, including its interests in the Manono project and its associated subsidiaries.
A Dispute Against a Backdrop of Falling Lithium Prices
Since 2023, AVZ Minerals has contested the Congolese authorities' decision to award an operating license for the Manono project to Manono Lithium SAS, a joint venture owned by Zijin Mining and Cominière. AVZ argues that the permit violates ICSID provisional orders to maintain the status quo pending a decision on the dispute’s merits.
Manono, a strategic project for AVZ and the DRC, is one of the world's largest lithium deposits. According to company estimates, it contains at least 400 million tonnes of mineral resources grading 1.65% lithium. Manono could significantly leverage the DRC’s lithium potential and bolster its mining revenues. However, legal disputes over mining rights have hindered its development. The $15 million financing recently secured by AVZ should enable the firm to continue its legal proceedings without immediate financial constraints, potentially extending these proceedings by several years.
Global lithium prices have fallen drastically since 2022. For instance, the price of spodumene fell from $6,401 per tonne in December 2022 to around $770 in September 2024 a decline of nearly 90%. This drop is attributed to oversupply while demand grows at a more moderate pace. According to the International Energy Agency (IEA), global lithium production is expected to reach 194,000 tonnes in 2023, an increase of 81% compared to 2021. However, demand grew by only 63% during this period, reaching 165,000 tonnes. Contributing factors include a buildup of inventories and slower-than-expected growth in electric vehicle sales.
LNK
Recently released gold export data from the Democratic Republic of Congo (DRC) for the first half of 2024 reveal a stark contrast in sales prices. The former Primera Gold company, a joint venture between the state and partners from the United Arab Emirates, achieved an average price of $64,502 per kilogram of gold sold. In contrast, Kibali Gold, which operates one of Africa's largest mines and is 90% owned by Barrick Gold and AngloGold Ashanti, sold its production at an average price of $46,214.8—almost $20,000 less than Primera Gold, which has now been rebranded as DRC Gold Trading after the State took full control of the company.
Artisans in Ituri and North Kivu also obtained a higher price than Kibali Gold, exporting their gold at an average price of $59,500 per kilogram compared to Kibali's $46,214.8, resulting in a difference of over $13,000.
These discrepancies in gold prices were evident in 2023 as well. Primera Gold and artisans sold their production at $59,509 and $38,484.4 per kilogram respectively, while the average price per kilogram from Kibali was just $30,915.6 a difference of nearly $30,000 and $10,000 respectively.
Despite being listed on major financial markets such as New York and Toronto, Barrick Gold, and AngloGold Ashanti have not managed to secure better prices than Primera Gold or small-scale artisans in Tshopo or Tanganyika provinces of eastern DRC, who primarily export unrefined gold.
Although transparency in the extractive sector has improved in the DRC, there are still major issues that prevent a full understanding of the value chain and real opportunities. Neither Barrick Gold nor AngloGold Ashanti provide details on their sales processes, leaving it unclear whether these prices stem from forward agreements or other sales strategies.
Impact on Public Revenues
The differences in pricing have significant implications for public revenues. Kibali Gold is the main contributor to gold export revenues in the DRC, with reported sales accounting for 88.2% of the total in the first quarter of 2024. The central government and the province hosting the mine (Haut-Uele) derive revenue through Sokimo's shareholding but primarily through royalties on sales value and various taxes. If Kibali sells its production at sub-optimal prices, this diminishes the revenue base for a government that requires resources to fund its development policies.
According to market data reviewed by Bankable Africa, the government collected up to $27.8 million in royalties from Barrick Gold alone between January and September 2024. This figure is slightly higher than the $25.5 million collected during the same period in 2023. While royalties increased by 9%, the price of gold on international markets rose by an average of 37% during this timeframe. Nevertheless, Barrick Gold reported an 8% decrease in quantities sold over the same period.
Georges Auréoles Bamba
Zambia faces an energy crisis that could exert pressure on mining operators in the southeast of the Democratic Republic of Congo (DRC). These operators primarily rely on Zambia to compensate for the insufficient supply of the Congolese utility, Société Nationale d'Electricité (SNEL). The operators import electricity directly, particularly in Katanga, or they purchase diesel to fuel their thermal power plants.
Last month, socio-political unrest in Mozambique and a new refundable tax in Zimbabwe complicated transit procedures, forcing Zambia’s petroleum product distributors to alter their routes, thus prolonging supply times and increasing costs.
According to Zambia's energy regulator, the situation is returning to normal. However, the watchdog announced a 4.2% increase in the cost of a liter of diesel, rising from 28.9 to 30.11 kwachas. Despite this increase, prices remain more competitive than fuel from Matadi, in the west of the DRC. Still, the surge will increase the operational costs of mining companies.
Besides the diesel price increase, Zambia recently raised electricity tariffs to improve the financial situation of its power utility, Zesco. This increase amounts to 115% for large consumers such as mining companies. The Zambian regulator has indicated that this hike in electricity tariffs should only last three months.
At the Makutano 2024 business forum held in Kinshasa from November 13 to 15, SNEL Managing Director Fabrice Lusinde revealed that mining companies have spent nearly $4 billion over five years to address their unmet energy needs. He noted that these exports could increase further next year. Last month, Ivanhoe Mines revealed it is negotiating to boost power imports from southern Africa for the Kamoa-Kakula mine via the Zambian interconnector, from 65 MW now to 100 MW by year-end.
Mining operators work with the SNEL to improve supply, but these efforts remain insufficient. Despite its significant hydroelectric potential, access to electricity in the DRC remains limited. Several dams are planned in the 2025-2028 Public Investment Program, but their completion will not fully address the shortfall. The project for a third dam on Inga is still under discussion; experts suggest it may not materialize within the next ten years.
Georges Auréole Bamba
DRC Gold Trading SA officially launched a new branch in Kalemie, in the eastern part of the Democratic Republic of Congo (DRC) on November 18. This is the firm’s second branch; the first is located in South Kivu. In a press release, the company announced the new branch’s opening, indicating that it wants to "expand its activities of purchasing, marketing, and exporting gold from artisanal and small-scale mining in all the country's gold provinces."
Originally named Primera Gold DRC, the company became DRC Gold Trading on November 13 after transitioning to public control. The State and two public entities acquired the 55% stake previously held by the Emirati company Primera Group under undisclosed terms. The State now holds 55% of the shares, the Mining Fund for Future Generations has 30%, and Gécamines holds 15%.
Despite these changes, DRC Gold Trading said its vision is the same: "To make the DRC the world's largest exporter of artisanal and small-scale gold, through credible, conflict-free supply chains that benefit local communities, both directly and indirectly impacted."
According to the firm’s Managing Director Joseph Kazibaziba, it will be challenging to bring in all artisanally mined gold into the official circuit. "More than 50 tonnes are fraudulently exported to the east coast of Congo, worth more than $5 billion. You can understand that DRC Gold Trading is a strategic company of vital importance to the state," he told the press on November 13 during the ceremony marking the company's name change.
Défis de la compétitivité des prix
So far, DRC Gold Trading has exclusively been active in South Kivu. The firm collected and exported over 5.5 tonnes of gold in 2023, worth over $350 million. With its new branch, the company plans to collect and export more gold. However, this will depend on the competitiveness of the prices offered to mining cooperatives, traders, and approved buyers from whom it sources gold.
DRC Gold Trading plans to export at least 12 tonnes of gold this year–a far-fetched goal, based on data from Bloomberg, relayed by the Ecofin Agency. The figures show that the firm’s gold exports are falling. Since November 2023, shipments have fallen by 50%; a situation attributed to higher black market prices offered to artisanal miners and banking regulations that limit daily cash transactions.
Aware of the challenges ahead, Joseph M. Kazibaziba, who was in Kalemie on November 17, met with traders from Tanganyika province. However, no details were released about this working session, which aimed to discuss the challenges faced by players in the gold sector. Nevertheless, at the opening ceremony of the new branch, the Managing Director of DRC Gold Trading appealed to the people of Tanganyika, saying: "DRC Gold Trading SA relies enormously on your support to accomplish the missions entrusted to it by the President of the Republic. Its success is also that of your province, which will benefit through tax and parafiscal levies, not to mention the jobs generated." The official also assured his audience that the company has sufficient financial capacity to absorb all quantities of artisanal and small-scale gold produced throughout the country's east coast.
Pierre Mukoko
The Kamoa-Kakula copper mine should deliver over 600,000 tonnes in 2026. The mine’s owner, Ivanhoe Mines, stated this on October 30, 2024, during a meeting with investors. On the occasion, Mama Cloete, President and CFO of Ivanhoe Mines, indicated that the figure would be reached “once we have completed Project 95”.
Project 95 will allow Ivanhoe Mines to recover up to 95% of copper concentrate from the same amount of ore mined and at the same operational costs. The project should begin in Q1 2026 and should add 30,000 to 40,000 tonnes of copper concentrate to Kamoa-Kakula’s annual production.
Ivanhoe Mines, primarily controlled by Chinese entities, also plans a phase 4 which could increase the mine’s production to 700,000-800,000 tonnes per year over the next 40 years. The firm seems on track to achieve this goal, although its output forecasts were scaled down due mainly to energy challenges. The firm has been taking various steps to overcome these issues.
For example, it is developing a program to back up power generation at the site. Backup capacity reached 135 MW in September and is expected to increase to 201 MW by the end of the year. Additionally, negotiations are underway to raise imported power from Southern Africa from 65 MW to 100 MW by year-end. There is also a project with Société Nationale d'Électricité (SNEL) to improve power transmission efficiency, which is scheduled for completion in the second half of 2025.
Balanced Finances
Financially, Ivanhoe Mines has been working to boost its balance sheet, with operating costs averaging $3,527.30 per tonne in Q3 2024, lower than the forecast of $3,748. Ivanhoe can also secure low-cost financing through anticipated sales contracts. Also, the current copper prices, at around $9,645 per tonne, exceed Ivanhoe’s forecast of $8,152 per tonne for Kamoa-Kakula this year. The surge in prices spurred stakeholders’ interest in the project. These include the government, foreign and local banks, and shareholders.
However, increased production does not guarantee better outcomes. Market demand, especially from China—the main buyer of Congolese copper—will play a crucial role. China's economic recovery projects are underway, but results are still pending. Additionally, political changes in the U.S., such as President Donald Trump's plans to reduce incentives for electric vehicles and impose higher taxes on imports from China, could impact demand.
On a positive note, new trade alliances within BRICS may support copper demand, as Europe aims to meet its electric mobility goals by 2035. These factors contribute to a sense of optimism in the sector.
Georges Auréole Bamba
Kamoa-Kakula, the largest copper mine in the Democratic Republic of Congo (DRC), produced a record 41,800 tonnes in October 2024. Ivanhoe Mines, which owns 39.6% of the project, disclosed the figure on November 4.
This output was 1,453 tonnes more than in August, when a third processing plant started operating. It is also just 8,200 tonnes short of the monthly target needed to reach the mine's full capacity of 600,000 tonnes.
On October 12, Kamoa-Kakula nearly reached its production capacity by producing a record 1,720 tonnes of copper. "This corresponds to an annualized production rate of around 580,000 tonnes of copper, taking availability into account," said Ivanhoe.
However, this increase does not make up for earlier production losses caused by inconsistent electricity supply. As a result, Ivanhoe has lowered its 2024 output forecast from 440,000-490,000 tonnes to 425,000-450,000 tonnes of copper concentrates. Still, this indicates that production could rise further in 2025 after an 18% increase in 2023 to 393,551 tonnes.
Copper prices are also rising. In the first half of 2024, the average price was $9,215.84 per tonne, up from $8,726.90 in the same period last year. Analysts expect prices to average $10,200 per tonne in the last quarter of 2024 and around $10,500 per tonne in 2025. Ivanhoe notes that an average price of $7,000 per tonne over the life of the mine is needed for solid profits.
Sales from Kamoa-Kakula exceeded $2.7 billion in 2023, and they are expected to be higher in 2024. Over the first nine months of this year, sales reached $2.3 billion, including a record $828 million in Q3. This strong performance is attractive to creditors; Kamoa-Kakula has secured $400 million in unsecured financing from DRC financial institutions for expansion. It is also beneficial for the government; by July 2024, Ivanhoe reported that the state had collected over $217 million in taxes on profits and earnings compared to nearly $29 million for all of 2023.
Pierre Mukoko
Orange DRC will provide telecom services to MMG Limited, a subsidiary of China Minmetals Corporation (CMC), telecom services at the Kinsevere copper mine in Haut-Katanga province. MMG announced the related agreement on November 1, 2024.
According to the deal, the telecom operator will supply MMG mobile phones, data transmission, and high-speed internet services. In partnership with Huawei, they will also provide an advanced eLTE private network solution for high-speed wireless communication.
MMG Limited plans to “use the Kinsevere mine as a platform to combine the technological advantages of Orange and Huawei with CMC's industrial capabilities and local expertise”, to “progressively build a digital, smart, and environmentally friendly project in Africa”.
The high-speed telecom services will enhance mining operations by improving team communication, allowing real-time monitoring of activities, and providing alerts in case of danger. These technologies will help quickly locate workers during emergencies and coordinate rescue efforts, improving safety on site.
Operational efficiency is crucial for intelligent mining. The focus is on optimizing human, material, and energy resources to meet production goals while reducing costs and environmental impacts.
MMG Limited reported that the Kinsevere mine produced 21,278 tonnes of copper cathodes in the first half of 2024. Sales increased by 6% compared to the same period in 2023, reaching $188.3 million, mainly due to higher copper prices. For 2024, MMG Limited aims to extract between 39,000 and 44,000 tonnes of copper cathodes from Kinsevere.
Muriel Edjo
Goldman Sachs scaled up its 2025 forecast for copper prices, from $10,100 to $10,160 per tonne average. The revision is largely due to recent economic stimulus measures in China that are boosting demand for copper.
A few weeks ago, the analysis firm Fastmarkets estimated that copper prices could average $10,265 per tonne this quarter. This prediction integrates China's 3.95 trillion yuan ($560 billion) stimulus plan announced in September to tackle the slowing economy, paired with the interest rate cuts by the US Federal Reserve.
It’s still unclear how these forecasts will affect mining revenues in the Democratic Republic of Congo (DRC), the world’s second-largest copper producer in 2023. Several factors must be considered, including contracts between the government and mining companies, agreements between those companies and their customers, and the country’s copper production levels.
In its 2025 Finance Bill presented to Parliament, the DRC government predicts a copper price of $7,909.57. The government noted that copper prices rose from $8,726.9 per tonne in the first half of 2023 to $9,215.84 per tonne during the same period in 2024, a 5.6% increase. Goldman Sachs' forecast thus exceeds the government projection by $2,250.43.
It should be recalled, however, that earlier this month, Ivanhoe Mines lowered its production forecast for Kamoa-Kakula, the largest copper mine in the DRC. The company attributed the change to instability in the power grid, among others. Ivanhoe now aims for a maximum production of 450,000 tonnes of copper concentrate in 2024, down from its previous target of 490,000 tonnes.
Kamoa-Kakula is among the mines that helped boost the DRC's copper outputs and mining revenues in recent years. While plans have been announced to address power supply issues by 2025, it remains uncertain how effectively these will be implemented and how they will impact next year’s production.
Louis-Nino Kansoun
Last week at the China Mining Forum, François Balumuene, the Democratic Republic of Congo's (DRC) ambassador to China, invited investors to contribute to the local production and processing of resources, not just extraction.
"We have highlighted all our country's mining potential to encourage investors to come not just to extract, but above all to produce, transform, and go as far as possible toward the finished product. This message aims to raise awareness because we are no longer a simple mining community," Balumuene said, stressing the need to create more value for the Congolese people.
The diplomat’s words echo Julien Paluku’s, the Congolese Minister of Foreign Trade. On October 17, speaking at the 10th Rebranding Africa Forum in Brussels, Belgium, Paluku referenced a 2021 BloombergNEF report showing that investing in processing minerals like cobalt and copper in the DRC is more cost-effective.
According to the report, "building a 10,000-ton cathode precursor plant in the DRC would require an investment of $39 million. This is three times less than the cost of a similar plant in the USA. The same plant in China and Poland would cost $112 million and $65 million, respectively."
The DRC is also looking to attract investors for lithium battery production. During a recent visit to Hungary, President Félix Tshisekedi was accompanied by the Managing Director of Congo Battery, highlighting the government's interest in this sector. Hungary, one of Europe’s largest battery producers, could help establish this industry in the DRC.
The recent declarations align with the government’s ambition to leverage the DRC’s position as a leading producer of strategic minerals essential for energy transition. Ultimately, the goal is to build a strong local industry that can compete with major processing countries like China.
In his recent speech, Balumuene clearly relayed this ambition of the DRC to process its mineral resources locally, to ensure that the Congolese people benefit directly.
Georges Auréole Bamba
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Gécamines has offered to buy the assets of Chemaf Resources in the Democratic Republic of Congo (DRC). Chemaf has been running since 208 the Mutoshi project. The latter can produce 16,000 tonnes of cobalt and 50,000 tonnes of copper annually. Due to financial issues, however, Chemaf announced in June 2024 that it planned to sell itself and its subsidiaries, including Mutoshi, to the Chinese company Norin Mining. Gécamines, the State company for Mines, opposed this sale and quickly voiced its objections, which the government supported.
The mining license for Mutoshi belongs to Gécamines. In 2015, Gécamines gave Chemaf a 25-year lease for the project. Gécamines has a "discretionary right of prior approval" for any changes in control, which Chemaf is said to have ignored before trying to finalize the sale. After canceling the deal with Norin Mining, Gécamines is now looking to regain control of Mutoshi and other licenses held by Chemaf.
For now, details of Gécamines’s offer are unknown, and it’s unclear what will happen next. This bid comes as the DRC seeks to diversify its partnerships in strategic minerals, which are mostly controlled by Chinese companies. For example, China's CMOC operates two mines in the DRC and is set to become the world’s leading cobalt producer by 2023. Ivanhoe Mines, which co-owns the largest copper mine in the DRC, is also over 34% controlled by Chinese firms, China CITIC Bank and Zijin Mining Group. The latter, it should be noted, co-owns the Kamoa-Kakula project with Ivanhoe and the Congolese State. The State owns 20% of the project, while the other own 39.6% each.
In an October 2024 interview, Congolese Mining Minister Kizito Pakabomba said the DRC is looking for new investors, including from the United Arab Emirates. He stressed the need to "attract better investors, more investors, and diversified investors," as most of the country’s copper and cobalt mines are currently controlled or linked to Chinese companies.
Becoming a key player in production and distribution
Gécamines has started renegotiating agreements with Chinese companies. After blocking CMOC exports for nearly a year, last year the Congolese company secured the right to acquire a production volume proportional to its 20% stake in the Tenke-Fungurume mine. At the beginning of 2024, Gécamines obtained similar production rights from Sicomines, a joint venture with Chinese companies where it holds a 32% stake. Gécamines is also negotiating similar agreements with other joint ventures it is involved in. Once a major player in copper and cobalt production in the 1980s, Gécamines aims to become a key trader in Congolese copper and cobalt.
Last month, Bloomberg reported that Gécamines made its first copper sales thanks to an agreement with CMOC. The Congolese company sold undisclosed quantities of copper to Glencore, Mercuria Energy Group, and Trafigura Group.
Tenke Fungurume has an annual production capacity of 450,000 tonnes of copper and 37,000 tonnes of cobalt. If the plant operates at full capacity this year, Gécamines could directly market 90,000 tonnes of copper and 7,400 tonnes of cobalt.
Umicore and STL (Societé pour le Traitement du Terril de Lubumbashi) , subsidiary of Gécamines, have signed an exclusive, long-term partnership agreement whereby Umicore will support STL to valorize germanium from the Big Hill tailings site in Lubumbashi: https://t.co/RFWqpPd8NZ pic.twitter.com/avWPJtEtaa
— Umicore (@UmicoreGroup) May 8, 2024
Besides copper and cobalt, Gécamines is working to strengthen its position in other metals, including Germanium. In 2023, Gécamines’ subsidiary STL built and launched a hydrometallurgical plant to process Germanium tailings from the "Big Hill" site in Lubumbashi. This project aims to secure 30% of the world’s germanium supply, currently dominated by China. Germanium is an essential metal used to make semiconductors.
On this project, Gécamines teamed up with Umicore, a Belgian company. Under their partnership agreement announced in May 2024, Umicore will provide technical expertise to refine germanium concentrates locally. In mid-October 2024, Gécamines announced its first shipment of germanium to Umicore.
"This first shipment of germanium confirms our ambition to make Congo a global hub for strategic metals, both for their extraction, which we already are in part, and for their local transformation in the future," said Gécamines President Guy Robert Lukama.
#News - Ivanhoe Mines and Gécamines sign a new joint venture agreement to restart the ultra-high-grade Kipushi Mine, a century since first opening.
— Ivanhoe Mines (@IvanhoeMines_) January 16, 2024
👉https://t.co/H27OQnVlUP pic.twitter.com/AWFzdZ14jN
Gécamines also aims to become a major zinc supplier, at the global level. This year, in partnership with Ivanhoe Mines, it reopened the Kipushi mine, inactive since 1993. Gécamines wants Kipushi one of the world’s 10 largest zinc mines. At full capacity, Kipushi is expected to produce 278,000 tonnes of zinc annually, averaging 240,000 tonnes per year over 14 years.
Under an agreement signed last January, Gécamines' stake in the Kipushi project will increase from 38% to 43% on January 25, 2027. It will rise to 80% once at least 2 million tonnes of ore have been extracted and processed, compared to Ivanhoe's current 20% stake as majority shareholder.
Avoid past mistakes
The measures taken by the Democratic Republic of Congo (DRC) in recent years to control its mineral wealth could boost mining’s economic impacts. In addition to previous successes, Kinshasa has revised the "mines for infrastructure" contract with China (Socomines), securing over $7 billion in infrastructure investments and a 1.2% royalty on Socomines' annual revenue. Under the agreement with CMOC, Gécamines will receive $800 million between 2023 and 2028, plus at least $1.2 billion in dividends over the life of the Tenke Fungurume mine.
The government’s efforts come as the country’s mining industry, especially the copper, cobalt, and lithium sectors, appeal more to investors. These minerals are vital for the energy transition. However, the government and Gécamines must avoid past mistakes, such as poor management, unfavorable agreements, corruption, and legal disputes with foreign investors that have diminished Gécamines' influence over the years.
Emiliano Tossou, Ecofin Agency
Ivanhoe Mines has cut its zinc production targets for 2024 at the Kipushi mine in the Democratic Republic of Congo (DRC). In a press release on October 7, 2024, the Canadian company said it halved the estimate from 100,000-140,000 tonnes to 50,000-70,000 tonnes of zinc concentrates.
"The transition to a stable annual production rate of over 250,000 tonnes of zinc concentrate from the Kipushi concentrator has been slower than expected due to three main factors: first, the ore extracted has a high iron content, which negatively affected concentrator recoveries. Second, the density separation circuit had more fine material than anticipated, limiting throughput. Lastly, the increase in power needs from 5 MW during construction to 18 MW for operations revealed issues in the local power grid," the company explained.
Ivanhoe said it is working on a program to fix these issues but did not provide details on when it will be completed.
Despite these challenges, Kipushi produced 17,817 tonnes of zinc in the third quarter of 2024, and exports began toward the end of that quarter. However, reaching the expected annual production of over 250,000 tonnes of zinc concentrate from this mine is still a long way off.
Kipushi is owned by Ivanhoe Mines (62%) and the Congolese government (38%).
ET
Ivanhoe Mines scaled down its 2024 production targets at the Kamoa-Kakula mine in the Democratic Republic of Congo (DRC). In a press release dated October 7, the Canadian company revised its expectations from 440,000-490,000 to 425,000-450,000 tonnes of copper concentrate.
Last month, Ivanhoe was very optimistic about the mine’s outputs: "Thanks to ongoing improvements in throughput and optimized copper recovery after launching the Stage 3 concentrator fine mills, Kamoa-Kakula expects to maintain its record production run and achieve its 2024 targets".
With the commissioning of the third treatment plant last August, Kamoa-Kakula achieved a record production of 116,313 tonnes of copper concentrate in Q3 2024. So far this year, the mine has produced 303,328 tonnes, according to Ivanhoe.
While the revised estimate integrates the commissioning of the Phase 3 concentrator, it reflects "production losses due to intermittent electricity supply from the grid, especially before installing additional on-site generation capacity and ongoing agreements for electricity imports." It also includes "known and unknown risks and uncertainties that may cause actual results to differ significantly." The country’s power issues caused production in H1 2024 to fall 5% year-on-year to 187,015 tonnes.
Last year, Kamoa-Kakula produced 393,551 tonnes of copper concentrate, up 18% year-on-year. Sales in 2023 also went up, exceeding $2.7 billion. This year, they should be higher due to rising copper prices. In Q1 2024, the average copper price reached $9,215.84 per tonne compared to $8,726.90 during the same period in 2023.
Kamoa-Kakula is owned by Ivanhoe Mines (39.6%), China’s Zijin Mining Group (39.6%), Crystal River Global Limited (0.8%), and the Congolese state through Gécamines (20%). During a Council of Ministers meeting on October 4, 2024, Minister Jean-Lucien Bussa expressed a desire for closer involvement of the Congolese State in selecting buyers for the copper produced by this mine, which is not only the largest in the DRC but also ranks as the third largest copper mine in the world.
Pierre Mukoko
The Democratic Republic of Congo (DRC) is set to gain significantly from the discovery of large gold reserves by Barrick Gold Corporation, a Canadian firm. Mark Bristow, the firm's President and CEO, announced that these reserves are located in the Kibali region, about 150 kilometers from Arua near the Ugandan border.
This discovery presents major opportunities for mining subcontractors, local councils, and the government to earn more through taxes and infrastructure contracts with Barrick as it aims to increase gold production in the DRC.
To date, Barrick Gold claims payments of $2.87 billion to local contractors and suppliers, $1.66 billion in royalties, taxes, and levies, and $216 million in infrastructure and community support.
While specific details about the reserves are still under wraps, exploiting them could position the DRC among the world's top gold producers and exporters. Bristow stated that the new reserves will greatly enhance output at Kibali, which is already the largest gold mine in the world. “The newly defined ARK target, located 4 kilometers from the processing plant, has the potential to provide a multi-million ounce high-grade deposit,” he said.
In 2023, the DRC was the seventeenth-largest gold producer globally, with a slight increase in output from 2022. Production is expected to rise by 0.88% between 2023 and 2027, according to Global Data.
Barrick Gold, which owns the Kibali mine, is a joint venture between Randgold (45%), AngloGold Ashanti (45%), and Sokimo (10%).
Emmanuel Tumanjong