Kamoa-Kakula Copper Production Reaches New Heights Despite Operational Challenges
Ivanhoe Mines' flagship Kamoa-Kakula Copper Complex continues to demonstrate remarkable resilience and growth in 2025, despite facing temporary operational setbacks. The operation has showcased impressive production figures while simultaneously advancing multiple strategic initiatives that position it for sustained long-term success in the face of changing copper price insights.
Record-Breaking Production Performance
Kamoa-Kakula produced an impressive 245,000 metric tonnes of copper in the first half of 2025, with Q2 delivering 112,000 metric tonnes—representing an 11% year-over-year increase. This robust performance comes despite operational challenges faced earlier in the year, highlighting the operational team's exceptional management capabilities.
The operation's three beneficiation plants collectively processed 3.62 million metric tonnes of ore during Q2 2025, demonstrating the integrated facility's growing capacity. Most notably, the Phase III plant exceeded its design capacity by an extraordinary 30%, processing 1.631 million metric tonnes of ore during the quarter.
"We highly commend the diligent, dedicated management team at Kamoa-Kakula. Their unwavering efforts have been instrumental in the successful resumption of operations following the unexpected challenges we faced," stated Robert Friedland, Co-Executive Chairman of Ivanhoe Mines.
June 2025 proved particularly productive, with copper production reaching 28,000 metric tonnes across the combined Phase I, II, and III plants. While recovery rates averaged 79% in June—lower than historical performance due to processing surface low-grade ore—this represents a strategic decision to maintain throughput during the recovery period.
Strategic Recovery Following Mine Tremor
Following a mine tremor on May 20, 2025, Ivanhoe implemented a comprehensive recovery strategy that has already shown significant progress. Mining operations in Kakula West successfully resumed on June 7, 2025, and rapidly scaled to 300,000 metric tonnes per month by mid-June—equivalent to 3.6 million tonnes annualized.
The extracted ore maintains excellent grade quality, ranging between 3% and 4% copper, ensuring continued high-value production. This quick recovery demonstrates the operational team's adaptability and technical expertise in underground mining operations.
Metallurgical recovery rates at the Phase I and II plants operated at approximately 85% of design capacity in Q2, which represents an impressive achievement considering the processing adjustments required following the tremor incident.
Comprehensive Dewatering Strategy Underway
A two-phase dewatering operation has been implemented to address water accumulation in the eastern section of the Kakula mine—a critical step in restoring full operational capacity.
Phase I Success and Phase II Implementation
Phase I dewatering initiated on June 2, 2025, has already achieved significant progress, successfully reducing water levels in the eastern Kakula section. This initial success has enabled technical teams to access portions of the affected area to begin rehabilitation work.
For Phase II, the operation has procured five high-capacity pumps from Hefei Hengda Jianghai Pump Industry Co., Ltd. in China. Each pump delivers an impressive 650 liters per second flow rate—significantly higher than standard mining dewatering equipment. The specialized equipment is currently being assembled in China with expected airlifting to the site in August 2025.
The pumps will be strategically deployed in pairs through two adjacent shafts to the deepest part of the eastern Kakula mine, with one pump maintained as backup to ensure continuous operations. This redundancy planning demonstrates Ivanhoe's thorough risk management approach.
The total capital expenditure for both dewatering phases is estimated at $70 million, including contingencies. Extracted water will be managed through existing surface channels and then directed to sedimentation and treatment ponds, minimizing environmental impact.
Strategic Mining Expansion Secures Future Production
Ivanhoe Mines has initiated an intelligent expansion strategy to maintain production growth through development work in a new high-grade mining area in the far eastern section of the Kakula mine.
Eastern Mining Area Development Timeline
Two main access tunnels are currently under construction, with development work having commenced in early July 2025. The operation is currently in the initial waste rock extraction phase, with high-grade ore extraction expected to begin in early 2026 and full mining operations anticipated by Q2 2026.
"We have commenced development work in a new high-grade mining area in the far eastern section of the Kakula mine that is expected to yield more high-grade ore by Q2 2026," explained Robert Friedland.
This strategic expansion leverages existing underground infrastructure, eliminating the need for new surface access construction—a significant cost-saving measure. Importantly, this development remains completely unaffected by the ongoing dewatering operations, allowing for parallel progress on multiple fronts.
The new mining area targets ore with copper grades of 5% or higher, which will contribute to maintaining Kamoa-Kakula's position among the world's highest-grade large-scale copper operations.
Smelter Commissioning Approaches Key Milestone
The on-site copper smelter represents a transformational step in Ivanhoe's vertical integration strategy, with operations set to commence in early September 2025 and the first copper anodes expected in October. This development marks a pivotal moment in Kamoa-Kakula's evolution from a mining and concentration operation to a fully integrated copper producer.
Production Timeline and Inventory Strategy
The smelter will initially operate at a minimum of 50% capacity, equivalent to processing 250,000 metric tonnes of copper annually. The facility employs an efficient one-step smelting process and will prioritize processing on-site concentrates.
As of June 30, 2025, Kamoa-Kakula had accumulated 54,000 metric tonnes of copper awaiting sale at the mine site, with an additional 32,000 metric tonnes stockpiled at the smelter site. This strategic inventory positioning ensures approximately 35,000 metric tonnes of copper will be immediately available when the smelter begins processing—optimizing the ramp-up period.
Off-take agreements have been secured for the smelter's entire production capacity, with 80% allocated to CITIC Metal and Zijin Mining, and the remaining 20% to Trafigura Asia Trading under a three-year term agreement.
Project 95 Plan Targets Industry-Leading Recovery Rates
Ivanhoe Mines continues to advance the "Project 95 Plan," a comprehensive efficiency initiative aimed at significantly increasing copper recovery rates at Kamoa-Kakula's beneficiation plants.
Recovery Enhancement Strategy
Currently 50% complete, the Project 95 Plan targets increasing recovery rates from the current 87% to an ambitious 95% when processing 5% high-grade ore. For lower-grade ores, the operation aims to maintain recovery at a minimum of 90%—still well above industry averages for similar operations.
The project focuses on optimizing flotation and gravity separation circuits through precise calibration and enhanced reagent management. When fully implemented in Q1 2026, these improvements will substantially increase copper yield without requiring additional ore throughput—effectively increasing production while minimizing the environmental footprint.
Renewable Energy Integration Advances Sustainability Goals
Kamoa-Kakula is implementing significant solar power generation capacity to enhance sustainability and operational reliability, positioning the operation as a leader in mining electrification initiatives across the global mining sector.
Solar Power Development Timeline
The operation is developing a 60MW photovoltaic (PV) solar installation complemented by a substantial battery energy storage system. Power purchase agreements have been signed with Cross Boundary Energy DRC and La Societe Green World Energie to provide a combined capacity of 406MW of PV power and 1,107 megawatt hours of battery storage.
Preliminary earthworks and land clearing are already underway, with project completion expected by mid-2026. Future expansion plans include doubling capacity to 120MW, which would significantly reduce the operation's carbon footprint and dependence on external power sources.
Long-lead equipment procurement has already begun, including battery energy storage systems (BESS) and prefabricated substations—critical components to ensure reliable power supply in the challenging operating environment of the Democratic Republic of Congo.
Kipushi Zinc Operations Achieve Record Production
Beyond copper, Ivanhoe Mines' diversified portfolio includes the Kipushi zinc operation, which has achieved record production levels and is implementing a phased expansion plan to further increase output.
Production Records and Expansion Plans
During Q2 2025, Kipushi processed 153,000 metric tonnes of ore and produced 42,000 metric tonnes of zinc concentrate. May 2025 set new records with 60,000 metric tonnes of ore processed and 18,000 metric tonnes of zinc concentrate produced.
The operation's Phase I expansion, which upgraded the tailings pumping system, has been successfully completed. Phase II expansion is currently in progress and will increase capacity by 20%, from 800,000 to 960,000 metric tonnes per year when completed in Q3 2025.
Heavy medium separation (HMS) process upgrades are being implemented to dramatically increase availability from 6 to 22 hours per day following a planned maintenance shutdown in August. These improvements will significantly boost the operation's zinc production capacity.
Kipushi continues to maintain an exemplary safety record, with zero lost-time injuries since construction began in September 2022—a testament to Ivanhoe's commitment to operational excellence and worker safety.
Platreef PGM Project On Schedule for Q4 2025 Production
The Platreef Phase I beneficiation plant remains on schedule to commence production in Q4 2025, marking Ivanhoe's strategic entry into platinum group metals (PGMs), nickel, copper, and gold production—further diversifying the company's commodity portfolio.
Development Progress and Milestones
Platreef successfully accessed the Flatreef orebody at the 850-meter level on April 30, 2025, and has since completed 43 meters of in-vein development. The operation is increasing its tunneling rate to 80 meters per month, with in-vein development at the 750-meter level scheduled to begin in October 2025.
The project is stockpiling 60,000 metric tonnes of developed ore for initial plant feed, ensuring a smooth start-up process. Shaft 3 equipment installation is progressing on schedule for Q1 2026 hoisting operations.
Drilling results at the 850-meter level have confirmed consistent grade distribution in the Flatreef orebody, validating the project's geological models and production forecasts.
Financial Outlook Remains Strong Despite Challenges
While detailed financial results will be announced on July 30, 2025, Ivanhoe Mines has provided preliminary guidance on capital expenditure and production targets that demonstrate the company's financial resilience.
Production Guidance and Capital Management
Ivanhoe has revised its 2025 production guidance to 370,000 to 420,000 tonnes of copper, accounting for the impact of the mine tremor and subsequent recovery operations. Despite these adjustments, the company expects 2025 capital expenditure to remain within the original guidance range of $1.42-1.67 billion on a 100% equity basis.
The company has secured strategic financing arrangements, including an off-take agreement with Trafigura Asia Trading for the remaining 20% of smelter production under a three-year term. This agreement includes a $200 million advance payment at favorable terms (1-month SOFR +3.75% interest rate).
Additionally, Ivanhoe has extended a $200 million loan agreement with Standard Bank for 12 months, providing further financial flexibility. Combined with the $500 million in prepayments from CITIC Metal and Zijin Mining, the company has secured substantial funding for its ongoing expansion initiatives.
Ivanhoe's Integrated Growth Strategy Positions Company for Long-Term Success
Ivanhoe Mines continues to demonstrate remarkable resilience and strategic vision across its diversified portfolio of assets. Despite operational challenges at Kamoa-Kakula, the company has implemented effective recovery measures while maintaining focus on long-term growth initiatives including smelter integration, renewable energy development, and efficiency improvements.
The concurrent advancement of the Kipushi zinc operation and Platreef PGM project positions Ivanhoe as a diversified mining company with significant exposure to critical metals essential for global copper supply forecast and global electrification and decarbonization efforts. With production increases expected across all operations in the coming quarters, Ivanhoe Mines appears well-positioned to capitalize on growing demand for copper, zinc, and platinum group metals.
Looking Forward: Sustainable Growth in Critical Metals
As global demand for copper continues to grow due to renewable energy expansion and electric vehicle adoption, Kamoa-Kakula's production growth comes at an opportune time. The operation's focus on vertical integration through smelter operations and commitment to renewable energy align perfectly with market trends favoring environmentally responsible copper production and emerging copper-uranium investment trends.
With its portfolio of world-class assets now moving from development into production phases, Ivanhoe Mines is transforming from a development company into a major diversified metals producer with significant production of copper, zinc, PGMs, nickel, and gold—all metals critical to the global energy transition and mining industry innovation.
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