Kolwezi, Democratic Republic of Congo--(Newsfile Corp. - March 5, 2025) - Ivanhoe Mines (TSX: IVN) (OTCQX: IVPAF) Executive Co-Chairman Robert Friedland and President & Chief Executive Officer Marna Cloete announced today an update on year-to-date production at the Kamoa-Kakula Copper Complex in the Democratic Republic of the Congo (DRC) and the ultra-high-grade Kipushi zinc mine, also in the DRC.
Kamoa-Kakula delivered near-record copper production in January of 45,477 tonnes and 40,849 tonnes during the shorter month of February. Daily copper production averaged over each month totaled 1,467 tonnes per day (tpd) in January and 1,459 tpd in February. These achievements are just short of the record 1,518 tpd of copper production achieved in December 2024.
In addition, copper production during the last week of February was 11,122 tonnes of copper. This is equivalent to an annualized production rate of over 578,000 tonnes of copper, which is at the top end of 2025 annual guidance. As announced on January 8, 2025, Kamoa-Kakula's 2025 copper production guidance is 520,000 to 580,000 tonnes of copper.
Figure 1: Kamoa-Kakula's monthly copper production growth since January 2024, presented in the chart as tonnes per day averaged over the month, with the equivalent annualized production rate above.
Kamoa-Kakula's power availability improving as the Southern Africa wet season gathers pace
Since the start of the year, Kamoa-Kakula's Phase 1, 2 and 3 operations have been powered by approximately 100 MW of domestically-generated and imported hydroelectric power. This is equivalent to approximately two-thirds of the operation's total requirement, with the remaining sourced from installed on-site, diesel-generated back up power. Discussions are well advanced to increase imported hydroelectric power by a further 20 MW by month-end.
Water levels have recently improved at the Cahora Bassa hydroelectric dam in Mozambique, where the majority of Kamoa-Kakula's imported power is sourced, as well as the Kariba hydroelectric dam in Zambia.
As reported on the Club of Mozambique website on March 4, 2025; "Current water levels in the Cahora Bassa reservoir guarantee the production of electricity until the last quarter of this year. This is the result of the water reserves accumulated during this rainy season, after levels fell to 19.18% in January, the lowest level in recent times." The Chairman of Cahora Bassa Hydroelectric Plant, Tomás Matola recently stated publicly, "With the rainfall that fell in February, we were able to recover and our hydro-meteorological forecasts show that more rain is coming and storage will naturally increase."
Repairs to damaged on-site back up generators progressing well
Kamoa-Kakula has over 190 megawatts (MW) of on-site, diesel-generated back up power installed. Currently, the on-site diesel generators are used to supply up to 50 MW, or approximately one-third, of Kamoa-Kakula's operational requirements.
Of the total 190 MW installed, 36 MW of generator capacity was damaged and are undergoing repair, as reported on January 8, 2025.
Total power required to operate the Phase 1, 2, and 3 operations, as well as the smelter at full capacity, is approximately 240 MW. Discussions to secure additional grid-supplied power dedicated for the heat-up of Kamoa-Kakula's smelter are advancing. The operations team are expecting heat-up to commence in May or June 2025 as previously announced.
Kamoa-Kakula's senior management and projects team celebrating the completion of the on-site copper smelter and the first delivery of concentrate from Kamoa-Kakula to the concentrate blending facility
Kamoa-Kakula's Project 95 is 20% complete and advancing on schedule
The "Project 95" initiative on Kamoa-Kakula's Phase 1 and 2 concentrators is expected to increase concentrator recoveries to 95%, from approximately 87%. The initiative, with a capital expenditure of approximately $180 million, is expected to increase annualized copper production by up to 30,000 tonnes, at an industry-leading capital intensity of $6,000 per tonne of copper.
Kamoa-Kakula's Project 95 is advancing well at 20% complete and is on schedule for completion in Q1 2026.
Civil works of Project 95 are advancing well, as shown in the foreground, with the adjacent Phase 1 and 2 concentrators in the background.
For a capital expenditure of $180 million, Project 95 is expected to generate up to 30,000 tonnes of additional copper production per annum from Q1 2026.
Kipushi produced a record 16,063 tonnes of zinc in January; nameplate milling rate recently achieved
The ramp up of the Kipushi concentrator is ongoing, with a record 16,063 tonnes of zinc produced in January and 11,903 tonnes of zinc produced during the shorter month of February. Kipushi's production rates on an annualized basis are approaching its 2025 guidance range of 180,000 to 240,000 tonnes of zinc in concentrate. In addition, since the start of 2025, concentrator recoveries have averaged approximately 88% and the concentrate grade is approximately 53% contained zinc. Ramp up to the nameplate milling rate of 2,000 tonnes per day was achieved in late February. Further improvements in production rates and concentrator recoveries are expected over the coming months.
Kipushi is targeting a production rate of over 250,000 tonnes of zinc in concentrate for 2026, following the completion of the debottlenecking program that is on schedule for late Q3 2025.
Kipushi's 800,000-tonnes-per-annum concentrator achieved nameplate milling rate in the past month.
Ivanhoe Mines is a Canadian mining company focused on advancing its three principal projects in Southern Africa; the expansion of the Kamoa-Kakula Copper Complex in the DRC, the ramp-up of the ultra-high-grade Kipushi zinc-copper-germanium-silver mine, also in the DRC; and the phased development of the tier-one Platreef palladium-nickel-platinum-rhodium-copper-gold project in South Africa.
Ivanhoe Mines also is exploring its highly prospective, 60-100% owned exploration licences in the Western Forelands, covering an area over 5 times larger than the adjacent Kamoa-Kakula Copper Complex. Ivanhoe is exploring for new sedimentary copper discoveries, as well as expanding and further defining its high-grade Makoko, Kiala, and Kitoko copper discoveries as the company's next major development projects.
Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the company, its projects, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified using words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events, or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect the company's current expectations regarding future events, performance, and results and speak only as of the date of this release.
Such statements include without limitation: (i) statements that Kamoa-Kakula’s Phase 1, 2 and 3 operations are powered by approximately 100 MW of domestically-generated and imported hydroelectric power and that discussions are well advanced to increase imported hydroelectric power by a further 20 MW by month-end; (ii) statements that total power required to operate the Phase 1, 2, and 3 operations, as well as the smelter at full capacity, is approximately 240 MW. Further, discussions to secure additional grid-supplied power dedicated for the heat-up of Kamoa-Kakula’s smelter are advancing and heat-up is expected to commence in May or June 2025; (iii) statements that the Project 95 initiative is expected to increase annualized copper production by up to 30,000 tonnes, at an industry-leading capital intensity of $6,000 per tonne of copper. Further, Kamoa-Kakula’s Project 95 is advancing well at 20% complete and is on schedule for completion in Q1 2026; and, (iv) statements that further improvements in production rates and concentrator recoveries at Kipushi are expected over the coming months. Further, that Kipushi is targeting a production rate of over 250,000 tonnes of zinc in concentrate for 2026, following the completion of ramp-up and debottlenecking activities targeted for Q3 2025.
Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indicators of whether such results will be achieved. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, however not limited to, the factors discussed above and under the "Risk Factors" and elsewhere in the company's MD&A for the 12 months ended December 31, 2024 and in its current annual information form, as well as unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations.
Although the forward-looking statements contained in this release are based upon what management of the company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this release.
The company's actual results could differ materially from those anticipated in these forward-looking statements as a result of the factors outlined in the "Risk Factors" section in the company's MD&A for the 12 months ended December 31, 2024 and its current annual information form.
