Ivanhoe disputes Zijin’s claims on Kakula mine suspension
Ivanhoe Mines Ltd. has pushed back against claims by its joint venture partner, Zijin Mining Group, regarding an alleged suspension of operations at the Kakula copper mine in the Democratic Republic of Congo.
The Canadian miner released a statement today refuting assertions made by Zijin in recent Chinese media reports, which suggested that mining activities at the site had been halted due to regulatory or operational issues.
Ivanhoe, which co-owns the Kamoa-Kakula Copper Complex with China’s Zijin and the DRC government, emphasized that operations at Kakula are continuing normally and that there has been no official suspension ordered by authorities.
“We are deeply concerned by the inaccurate reports circulated in the media. Kakula remains fully operational, and we are in close communication with both local and national authorities in the DRC,” Ivanhoe said in a press release.
The controversy emerged after reports surfaced in China suggesting that the DRC government had intervened at the Kakula mine due to alleged non-compliance with local mining regulations. Zijin reportedly cited environmental and permitting issues as potential triggers for a suspension.
However, Ivanhoe insists that no such action has been taken. “All regulatory filings and environmental obligations are being met, and we continue to operate under the full knowledge and support of Congolese authorities,” the company added.
The Kakula mine, one of the world’s richest copper deposits, began production in 2021 and has rapidly scaled up to become a significant contributor to global copper supply. The project is part of the broader Kamoa-Kakula mining complex, which is expected to produce over 500,000 tonnes of copper annually at peak production.
Analysts believe the dispute could signal deeper tensions between the joint venture partners, particularly as global demand for copper surges amid the transition to green energy technologies.
Neither Zijin nor the DRC’s Ministry of Mines has responded to Ivanhoe’s statement as of press time. Market watchers are monitoring the situation closely for potential impacts on production and copper prices.
Shares in Ivanhoe Mines (TSX: IVN) were down 2.3% in afternoon trading, while Zijin Mining (SHA: 601899) saw a slight decline on the Shanghai Stock Exchange.
