Overview of the Kipushi Mine

Located in the Democratic Republic of Congo (DRC), the Kipushi mine began operations in 1924, primarily focusing on copper extraction. Over the decades, the mine went through several phases of expansion and development, solidifying its place in the Congolese mining industry. However, in 1993, faced with various economic and technical challenges, the mine was put into maintenance mode. The situation persisted until 2022, when a partnership between Gécamines and the Canadian company Ivanhoe Mines unveiled an ambitious plan to revive this historic mine, this time focusing on exploiting the rich zinc deposits.

The revival of the Kipushi mine marks a decisive turning point for the mining industry in the DRC. After 31 years of maintenance, strategic investments and technological innovations have revitalized the mine. July 2, 2024, was a landmark date with the production of the first zinc concentrate, positioning Kipushi as a major player in the global strategic metals market. Thanks to its rich content of zinc, copper, germanium, and silver, the mine is poised to regain a leading position in the global mining economy.

The Kipushi zinc-copper-germanium-silver-lead mine is recognized as the richest in zinc in the world and plans to restart production in the third quarter of 2024. With an anticipated production of 270,000 tonnes of zinc concentrate, Kipushi positions itself among the largest zinc producers in the world. Located near the town of Kipushi, about 30 kilometers southwest of Lubumbashi, the mine sits on a high-grade copper belt in Central Africa. Between 1924 and 1993, it produced approximately 60 million tonnes of ore with high zinc and copper grades. In addition to these metals, the mine also produced lead and germanium, notably between 1956 and 1978. After a long period of maintenance, the partnership between Ivanhoe and Gécamines, concluded at the end of 2022, aims to bring Kipushi back to full production, thus revitalizing a pillar of the Congolese mining industry.[1]

Objectives and Production of the Kipushi Mine

Under the partnership between Gécamines and Ivanhoe Mines, the Kipushi mine plans to produce between 100,000 and 140,000 tonnes of zinc concentrate starting in 2024, with an annual capacity that could reach 278,000 tonnes, making it the fourth largest zinc mine in the world. This revival is supported by strong sales agreements with Citic Metal Limited and Trafigura Asia Trading, ensuring stable commercial outlets for Congolese zinc. Ivanhoe Mines has successfully negotiated contracts for Kipushi's high-quality zinc concentrate, with prospects for new agreements in the coming months.

The Kipushi mine also holds significant potential for other metals such as copper, lead, and germanium. With this revival, the Democratic Republic of the Congo strengthens its already dominant position in the copper and germanium market. In 2023, a new hydrometallurgical plant was commissioned in Kipushi, aiming to supply up to 30% of the world's germanium supply. This initiative highlights the strategic importance of Kipushi for the global mining industry.

The Kipushi mine represents an essential resource for the DRC, reinforcing its growing role in the supply of precious metals. The development of this mine, supported by strategic partnerships and solid trade agreements, illustrates the DRC's ability to play a key role in the global mining industry. The importance of Kipushi goes beyond zinc, with considerable potential for other critical metals, positioning the DRC as an indispensable player on the international mining scene.[2]

Collaboration and Innovations

The partnership between Ivanhoe Mines and Gécamines is distinguished by its collaborative and innovative approach. The agreement signed in January 2024 provides for a gradual increase in Gécamines' stake in Kipushi, from 32% to 38% in 2024, reaching 43% in 2027. This partnership structure ensures significant involvement of local stakeholders while attracting foreign investments and technical expertise.

The revival of Kipushi is also marked by major technological advancements, particularly in reducing carbon emissions. The mine is recognized as the least carbon-intensive in the world on a Scope 1 and 2 basis. These efforts in environmental sustainability illustrate the partners' commitment to aligning their operations with international best practices.[3]

Economic Outlook and Development

The revival of the Kipushi mine is a significant milestone for the DRC's economy, offering promising prospects for local and national development. Increased production of zinc and other critical metals is expected to drive innovation, create jobs, and generate significant revenue for the Congolese state. Furthermore, the Kipushi mine is expected to serve as a model for other mining projects in the DRC, demonstrating the viability of public-private partnerships in the mining sector.