Ivanhoe Mines Lowers Production Forecasts at DRC’s Kamoa-Kakula and Kipushi Mines

Ivanhoe Mines

Ivanhoe Mines, a Canadian mining company, announced a downward revision of its full-year production forecasts for its copper and zinc operations in the Democratic Republic of Congo (DRC). The updated guidance reflects ongoing challenges, particularly with the power supply, impacting output at the Kamoa-Kakula copper complex and the Kipushi zinc mine.

Power Supply Issues Impact Copper and Zinc Production

For the Kamoa-Kakula copper complex, the company has adjusted its 2024 copper-in-concentrate production guidance to a range of 425,000-450,000 metric tons, down from the earlier estimate of 440,000-490,000 metric tons. The revision comes amid instability in the local electrical grid and the ongoing commissioning of the site’s phase 3 concentrator, which recently began commercial operations. Despite these challenges, the mine achieved a record production of 116,313 metric tons in the third quarter, marking a 15% increase from the previous quarter. The new phase 3 concentrator added 22,099 metric tons to the quarterly output, pushing the facility's overall production capacity to 600,000 metric tons per year, up from 450,000 metric tons.

Kamoa-Kakula’s operations have been steadily ramping up, with the complex reporting year-to-date production of 303,328 metric tons. Construction on a new 500,000 metric ton per year smelter is proceeding as planned, with completion expected by the end of the year. However, grid-related power issues remain a concern that could affect future performance.

In contrast, the Kipushi zinc mine’s production forecast was significantly revised, with full-year guidance lowered to 50,000-70,000 metric tons of zinc in concentrate, down from the initial target of 100,000-140,000 metric tons. The mine produced 17,817 metric tons in the third quarter, but ramp-up efforts have been hampered by issues such as high iron content in the ore, limited processing throughput, and ongoing power transmission challenges. Ivanhoe had anticipated reaching an average annual production rate of 250,000 metric tons, but the current pace has been slower than expected.

The power supply difficulties, alongside technical issues in the concentrator at Kipushi, underscore broader infrastructure challenges in the DRC, potentially impacting the reliability of future production targets.