KEY POINTS
- Ivanhoe cuts annual copper forecast due to DRC grid issues.
- Company advances exploration at Western Forelands, with new discoveries.
- New smelter and sustainable rail transport support Ivanhoe’s green goals.
Ivanhoe Mines has announced a 6 percent reduction in its annual copper forecast due to power issues in the Democratic Republic of Congo (DRC), where the company operates its Kamoa-Kakula copper mine.
Despite record third-quarter output of 116,000 tonnes, power disruptions from the DRC’s southern grid have constrained reliable energy delivery. This year’s expected output has been adjusted to between 425,000 and 450,000 tonnes.
The power shortages result from transmission bottlenecks at the Kolwezi substation and delays in upgrades to the Inga II dam’s transmission line. Ivanhoe has responded by installing 220 megawatts of diesel backup power and is developing solar and battery solutions to stabilize supply by 2025.
“We’re not only addressing the grid challenges but ensuring long-term energy stability,” said COO Mark Farren during an investor call. These issues reduced copper production by 36,500 tonnes in 2024, but management expects more reliable operations next year.
Strategic shift to self-sufficient processing and exploration
Ivanhoe’s major problems in DRC infrastructure have forced the company to aim at being able to produce for itself. Long lead item is integrated steelmaker that is now progressing at 94 percent and is on track to process in early 2025 meaning that Ivanhoe will no longer have to depend on outside smelters. With the new facility, Ivanhoe will perform blister copper refinement within its capacity that boosts profitability by eliminating processing costs.
Ivanhoe is also expanding exploration work. The company plans to spend $90m on the Western Forelands project, which is adjacent to Kamoa-Kakula, where it holds 2,654 square kilometers of land.
“Western Forelands is likely to exceed Kamoa-Kakula in potential,” said an Ivanhoe executive, adding that the area could host multiple large-scale mining operations.
According to Mining.com, exploration has reached nearly 70,000 meters of drilling, with promising mineral finds at the Makoko site, where resources include 16 million tonnes at 3.6 percent copper.
Chairman Robert Friedland hinted at a forthcoming update on Western Forelands, describing the area as “the greenest place to find high-grade copper” thanks to DRC’s hydroelectric power. Friedland added that Ivanhoe will proceed alone unless a partner can add substantial value to the project.
Sustainable transport and development initiatives
Ivanhoe is also set to gain from a new rail line known as the Lobito rail corridor, which will transport copper from the Kamoa-Kakula mine, to the Atlantic.
Starting from an altitude of 4,500 feet, the railway will reduce transport costs and produce power as it tumbles downhill. Friedland pointed out that the rail line is a key part of Ivanhoe’s efforts to combat high carbon credentials in the production of copper.
These sustainability-stricken projects, Ivanhoe expects a mined output of 600,000 tonnes of copper by the year 2026. The company is aiming to being a green mining company by adopting the use of renewable energy and reducing emission through, among others, the Lobito corridor.
