IVANHOE Mines has announced a pivotal joint venture with state-owned mining company Gécamines to resurrect operations at the historic Kipushi zinc/copper/silver mine in the Democratic Republic of Congo (DRC). The collaboration signals a significant stride towards the mine’s revival, with production slated to commence in Q2 2024, marking the end of a nearly century-long hiatus.
Originally launched in 1924, the Kipushi Mine held the distinction of being the world’s richest copper mine during that era. The joint venture, solidified through a term sheet signed on February 14 2022 by Gécamines, Kipushi Holding, and Kipushi Corporation (KICO), outlines key agreements for the mine’s operational resurgence.
As per the terms, Kipushi Holding, a wholly owned Ivanhoe Mines subsidiary, will transfer an additional 6 percent of KICO’s share capital and voting rights to Gécamines. This transfer elevates Gécamines’ stake in Kipushi Holding from 32 percent to 38 percent. Additionally, starting from January 25 2027, Gécamines is set to acquire an extra 5 percent of KICO’s share capital and voting rights, securing a total ownership of 43 percent.
While Kipushi Holding retains a 57 percent ownership in KICO, provisions are in place for the potential transfer of KICO’s share capital to the DRC State or a third party, as mandated by law or regulation. In such instances, Gécamines will undertake the necessary transfer of KICO shares.
During the 12-year exploitation period of the Big Zinc deposit, Gécamines holds the option to purchase and process the concentrate produced by KICO locally, fostering in-country value addition. This joint venture not only revitalizes the historic Kipushi Mine but also sets the stage for sustainable mining practices and economic growth in the region.