TSX-listed Ivanhoe Mines has announced that its operating company in the Democratic Republic of Congo, Kamoa Copper, has signed offtake agreements with Citic Metal and Gold Mountains International Mining Company for copper concentrate and blister copper.
Gold Mountains is a subsidiary of Zijin Mining, which is a 39.6% shareholder in Kamoa Copper.
The offtake agreements involve a 50% supply of copper products from Kamoa-Kakula’s Phase 1 production each for Citic and Zijin.
Kamoa Copper began producing copper concentrate months ahead of schedule on May 25, from the Kamoa-Kakula mine. The concentrate is being processed at the nearby Lualaba smelter.
The ultrahigh-grade, clean concentrate produced by Kamoa-Kakula is expected to contain about 57% copper and very low levels of impurities.
The mine’s copper output will average 200 000 t/y during Phase 1 of operation and eventually approach its peak annual copper production rate of 800 000 t, in a phased approach.
Citic and Zijin will buy the copper concentrate at the Kakula mine and the blister copper at the Lualaba copper smelter on a free-carrier basis, meaning the buyers will be responsible for arranging freight and shipment to the final destination, initially through the Port of Durban in South Africa.
Citic and Zijin will each provide an advance payment facility of up to $150-million each, to be drawn at the election of Kamoa Copper from June 10, this year to May 31, 2023.