Global partners in developing world-class projects in Africa
CITIC Metal Group, one of China’s leading international resources companies, recently joined Ivanhoe Mines and its other partners as a strategic, global partner through an initial investment of US$560 million and has now committed to investing a further US$457 million through equity financing.
Robert Friedland, Executive Co-Chairman and founder of Ivanhoe Mines says: “After a period of extensive due diligence and multiple site visits, we are delighted to have CITIC as our largest shareholder. It’s leaders have reviewed hundreds of mining projects around the world, helping them to fully appreciate the world-scale significance of our three tier-one projects as well as the opportunities and challenges that lie ahead as we move forward with our ongoing mine developments and exploration programmes.
“We are confident that CTIC has the experience, financial resources – and a shared commitment to our objectives – to greatly assist us as we advance our projects to production, creating value for Ivanhoe’s stakeholders in the Democratic Republic of Congo and South Africa, and our international shareholders.
“Importantly, we share the same commitment to implement leading-edge, international best practices in building innovative, environmentally and socially-responsible mines. CITIC also has a profound appreciation of diverse cultures, which is an indispensable factor in successful construction and operation of large-scale mining assets in Africa.”
Reflecting a15 year close working relationship and signalling the prominent role the CITIC will play in shaping Ivanhoe’s future, the Chinese company’s president, Yufeng “Miles” Sun, has joined the South African team as co-chairman.
Ivanhoe Mines is a mineral exploration and development company with a vision to build a leading, commodity-diversified mining and exploration company through the development of principal projects in Africa, in collaboration with a variety of partners. Its three principal, joint-venture projects in Southern Africa include: the Kamoa Mining Engineer, Pontien Kalala, explaining Kakula drilling programme to supervisors from JCHX mining contractors at Kakula underground mine
development of new mines at the Kamoa-Kakula copper discovery in the Democratic Republic of Congo (DRC) and the Platreef platinum-palladium-nickel-copper-gold discovery in South Africa; and the extensive redevelopment and upgrading of the historic Kipushi zinc-copper-germanium-silver mine, also in the DRC. The company is also exploring for new copper discoveries on its wholly-owned Western Foreland exploration licences, adjacent to the Kamoa-Kakula mining licence.
Construction of the planned Platreef Mine is underway on the company’s discovery of platinum, palladium, nickel, copper, gold and rhodium on the Northern Limb of South Africa’s Bushveld Complex. Ivanhoe holds a 64 percent interest in Platreef. The South African beneficiaries of a broadbased, black economic empowerment structure have a combined 26 percent stake. The remaining 10 percent is owned by a Japanese consortium of ITOCHU Corporation, Japan Oil, Gas and Metals National Corporation; and Japan Gas Corporation.
The existing Kipushi Mine is located on the Central African Copperbelt in the DRC’s southern Haut-Katanga province, one of Africa’s major mining hubs. The mine, which operated between 1924 and 1993, is approximately 30 kilometres southwest of the provincial capital, Lubumbashi, and less than a kilometre from the Zambia
border. Ivanhoe holds a 68 percent interest in Kipushi; the state-owned mining company. La Générale des Carrières et des Mines holds the remaining 32 percent.
The Kamoa-Kakula project is a joint venture between Ivanhoe, Zijin Mining Group Co., Ltd., Crystal River Global Limited (Crystal River) and the DRC Government within the Central African Copperbelt in the DRC’s southern Lualaba province. Following the signing of an agreement in November 2016 to transfer an additional 15 percent in the Kamoa-Kakula Project to the government, Ivanhoe Mines and Zijin Mining each hold an indirect 39.6 percent in the project. Crystal River holds an indirect 0.8 percent and the DRC government holds a direct 20 percent..
Friedland concludes, “After more than a quarter of a century of incredibly intensive efforts by our people, Ivanhoe is about to make a major transformative leap forward from one of the modern world’s top explorers to a leading producer. We are extremely proud of our exploration and development successes to date. We are even more proud of our growing team of talented South African and Congolese women and men – who have embraced our goal of environmental, health and safety excellence – and our community enhancement programmes that are having a meaningful, positive impact on the families living near our operations.”