Ivanhoe and Trafigura to Pioneer Use of Revitalized Lobito Atlantic Railway Corridor
The Lobito Atlantic Railway Corridor, a strategic rail line connecting crucial African mines to the Atlantic port of Lobito in Angola, is set for a significant boost with a $250 million investment from the Biden administration aimed at its revitalization. This century-old railway is also part of a broader initiative, including a study to extend the rail into Zambia with an anticipated cost of $1.6 billion, enhancing regional connectivity and mining exports.
Ivanhoe Mines and commodities trading giant Trafigura are poised to be the first to utilize this revamped railway, marking a pivotal step in improving logistical operations for mining exports. Ivanhoe has secured the rights to transport between 120,000 and 240,000 tonnes of copper annually from its Kamoa-Kakula project in the Democratic Republic of Congo (DRC) via the Lobito Corridor, starting with a ramp-up in 2024 and a minimum five-year agreement commencing in 2025.
Following a successful trial shipment in January, which saw copper concentrate from Kamoa-Kakula reach Lobito port, further shipments totaling up to 10,000 tonnes are slated for this year. Robert Friedland, Ivanhoe Mines’ founder and executive co-chairman, highlighted the corridor's potential to catalyze more copper projects by offering more cost-effective logistics, thereby enhancing the economic viability of copper resources across the Copperbelt.
The Lobito Atlantic Railway consortium, which includes Trafigura, Mota-Engil, and Vecturis, has been entrusted with a 30-year concession for the rail line and port's operation, management, and maintenance since 2022. Trafigura has committed to a six-year term, beginning in 2025, to transport up to 450,000 tonnes per annum, supporting the consortium's vision to elevate the Lobito Corridor as a premier rail transport link in sub-Saharan Africa. Plans are underway to boost the line's export capacity to one million tonnes annually by 2030, promising a new era of efficiency and connectivity for the region's mining sector.
