The Lobito Atlantic Rail Corridor: A New Era for DRC Copper Export
Economic news in the Democratic Republic of Congo is marked by a major announcement in the mining sector. Ivanhoé Mines, in partnership with the Lobito Atlantic International SARL (LAL) consortium, has just signed a memorandum of understanding worth $555 million for copper concentrate exports from the Kamoa-Kakula complex. This collaboration aims to use the Atlantic rail corridor of Lobito, which connects the DRC to Angola, for the transport of the ore.
Through this agreement, additional infrastructure in the DRC will be upgraded, and the capacity and security of the Lobito Corridor will be improved. This includes the acquisition of rolling stock comprising over 1,500 wagons and 35 locomotives in Angola. The common vision of both parties is also to extend this corridor to Zambia.
The benefits of this collaboration are multiple. First, the Lobito Corridor will reduce pressure on other logistics routes in the country. The costs of exporting and importing into the copperbelt zone of the DRC will also be reduced. Currently, copper concentrates are transported by road through sub-Saharan Africa to the ports of Durban in South Africa, Dar-es-Salaam in Tanzania, Beira in Mozambique or Walvis Bay in Namibia, before be shipped to international markets. By using the Lobito Corridor, the distance will be significantly reduced and rail transport will be faster and more energy efficient.
A first test shipment is scheduled for the fourth quarter of 2023. It will consist of approximately 10,000 tonnes of copper concentrate from Kamoa-Kakula Phases 1 and 2. This test will validate the effectiveness of this new means of transport.
This collaboration between Ivanhoé Mines, LAL and the Angolan and Congolese authorities opens up new prospects for the mining sector in the DRC. By using the Lobito Atlantic Rail Corridor, the export of copper will be faster, cheaper and more sustainable. This will contribute to the country’s economic development and strengthen its position in the international copper market.
In conclusion, the partnership between Ivanhoé Mines, the LAL consortium and the governments of Angola and the DRC demonstrates a strategic collaboration aimed at optimizing copper exports using the Lobito Atlantic rail corridor