Kipushi Mine Resumes Operations After Three Decades
Ivanhoe Mines has announced the restart of operations at the historic Kipushi zinc-copper-lead-germanium mine in the Democratic Republic of Congo (DRC), marking a significant milestone after the mine was placed on care and maintenance 31 years ago. First ore was fed into the new concentrator on May 31, 2024, with the first concentrate produced on June 14, 2024.
The Kipushi mine, which is recognized as the world's lowest carbon-emission intensive zinc mine on a Scope 1 and 2 basis, has set its 2024 production guidance at between 100,000 and 140,000 tonnes of zinc in concentrate. Over the first five years, the mine is expected to average a production capacity of 278,000 tonnes per annum, positioning it as the fourth-largest zinc mine globally.
To enhance its processing capacity, basic engineering is underway to increase the concentrator's throughput by 20%, aiming to reach 960,000 tonnes per annum. Kipushi's high-grade zinc concentrate has secured off-take agreements with CITIC Metal of Hong Kong and Trafigura Asia Trading of Singapore. Additional agreements are anticipated in the coming months.
Financing facilities totaling $170 million have been arranged, with contributions from CITIC Metal, Trafigura, and First Bank DRC of Kinshasa, with $50 million already drawn.
Kipushi Corporation SA (KICO), the operating company, is 68% owned by Kipushi Holding, a subsidiary of Ivanhoe Mines, while the remaining 32% is owned by Gécamines. According to the Joint-Venture Agreement announced in January 2024, Gécamines is set to acquire an increasing share of the capital and voting rights in KICO over time, contingent on meeting specific conditions.
