TSX-listed Ivanhoe Mines has signed a new joint venture (JV) agreement with State-owned mining company Gécamines to restart the high-grade Kipushi zinc/copper/silver mine, in the Democratic Republic of Congo (DRC).
The company has already started with surface construction activities and underground development on site, with first production expected in the second quarter.
Ivanhoe co-chairperson Robert Friedland says the signing of the new JV heralds the beginning of a new era of production for the Kipushi mine, which will resume operations 100 years after first opening in 1924 as the world’s richest copper mine.
The mine has been inactive for the last 30 years.
Gécamines chairperson Guy-Robert Nkunzi says the relaunch of the Kipushi mine is a source of pride for all its former employees, the local communities of Kiphusi town, the Haut-Katanga province and the country as a whole.
The agreement involves Gécamines increasing its stake in Kiphusi Corporation, which is currently a 100%-owned subsidiary of Ivanhoe, to 38% and further to 43% in 2027.
Once a minimum of the current proven and probable reserves and up to 12-million tonnes have been mined and processed, an additional 37% of the share capital and voting rights in the JV shall be transferred to Gécamines, after which Gécamines will hold 80%.
Ivanhoe confirms that a new supervisory board and executive committee is in the process of being established.
The mine, which is based 30 km southwest of Lubumbashi on the DRC Copperbelt, has notable quantities of germanium, lead, gallium and other metals that are critical for global growth. It is also considered the world’s richest zinc orebody.