Title: Ivanhoé Mines and LAL: a historic agreement for the export of copper from Kamoa-Kakula
Introduction:
Lobito, Angola – Ivanhoé Mines, one of the world’s leading mining companies, recently signed a memorandum of understanding worth $555 million with the Lobito Atlantic international SARL (LAL) consortium for the export of Kamoa-Kakula copper complex concentrate. This historic agreement provides for the modernization of rail infrastructure and the consolidation of the Lobito Corridor, thus opening up new prospects for the mining industry in the Democratic Republic of Congo (DRC) and in the region.
Reinforcement of the Lobito Corridor:
One of the main benefits of this agreement is the strengthening of the Lobito corridor, which links Angola to the DRC. This will significantly reduce export and import costs for the copperbelt area of the DRC, thereby improving the competitiveness of the mining industry in the region. In addition, this agreement will help reduce pressure on other logistics corridors in the country, by streamlining the transport of copper concentrates from Kamoa-Kakula to international markets.
A balanced financial partnership:
The memorandum of understanding between Ivanhoé Mines and LAL includes a balanced financial package, with an investment of $455 million planned in Angola and $100 million in the DRC. This demonstrates the commitment of both parties to develop the necessary infrastructure to facilitate exports of copper concentrate. In addition to investments in railway infrastructure, the agreement also includes the acquisition of rolling stock comprising 1,500 wagons and 35 locomotives in Angola, which will significantly improve the capacity and safety of rail transport.
A first test expedition in sight:
A first test shipment is scheduled for the fourth quarter of 2023, transporting approximately 10,000 tonnes of copper concentrate from Kamoa-Kakula Phases 1 and 2. This shipment will mark an important step in the implementation of the agreement between Ivanhoé Mines and LAL, demonstrating the advantages of transportation through the Lobito corridor. Currently, copper concentrates from Kamoa-Kakula are transported by road through sub-Saharan Africa to various international ports. Rail transport via the Lobito Corridor will provide a faster and less energy-intensive alternative.
The Lobito Corridor Extension Project:
The two parties also share the vision of extending the Lobito Corridor to Zambia, thereby opening up new export routes for Kamoa-Kakula copper. This potential expansion would further strengthen the DRC’s position as one of the world’s leading copper producers and boost economic development in the region..
Conclusion:
The agreement between Ivanhoé Mines and LAL for copper concentrate exports from Kamoa-Kakula via the Lobito Corridor opens up new opportunities for the mining industry in the DRC. Upgrading rail infrastructure and improving the Lobito Corridor will reduce transportation costs, enhance the sector’s competitiveness, and boost economic development in the region. With a first test expedition planned soon and expansion projects in prospect, this agreement marks an important step in the development of the mining industry in the DRC