GECAMINES-IVANHOÉ MINES RESUME ZINC PRODUCTION IN KIPUSHI

The Congolese state-owned mining company, Générale des Carrières et Mines, announced on Friday, April 27, 2023, the signing of a term sheet with its partner Kipushi Corporation, abbreviated as KICO, in order to raise funds for the operational resumption of production at the KIPUSHI mine.

With a US$250 million credit facility backed by Glencore, these two mining partners are determined to restart zinc production after this initial phase of work focused on building the processing plant and the ore body. Production of the Big Zinc project is also well on schedule with excavation operations planned to begin in early January 2024.

How is this project beneficial for the DRC?

The inhabitants of the mining town of Kipushi praise at first glance the development plan of this partnership which envisages the construction of a new commercial border post in KIPUSHI, which post will enhance the DRC in general and the mining town of Kipushi in particular.

Next, the Kipushi Corporation project will be powered by clean hydroelectricity, in line with Ivanhoe’s vision of producing metals in a manner that respects the environmental plan and study. As a reminder, to date, Kipushi Corporation’s activities have been financed by a shareholder loan from Kipushi Holding, valued at USD 661 million as of March 31, 2023. The remaining initial capital cost required for the Kico project in 2023 and 2024 amounts to USD 380 million, in accordance with Ivanhoe’s estimates.

Therefore, the company is currently exploring the possibility of an interim bank financing facility of up to USD 80 million. Within this innovative partnership, which promises to create significant value for the DRC, Gécamines is expected to attract more investment to the country.

The Kipushi-Corporation project, by its unprecedented nature, acts as a catalyst for Gecamines to become an important player in the project’s value chain and for the development of basic infrastructure.

Melanie Mbutu