Robert Friedland, executive chairman of Ivanhoe Mines, and Lars-Eric Johansson, CEO, reiterated a statement issued on June 9 reconfirming Ivanhoe’s commitment to finalize an agreement for the sale of a further interest of up to 15% in the company’s Kamoa copper project to the government of the Democratic Republic of Congo (DRC).
Ivanhoe recently announced it would sell 50% of its interest in Kamoa to China’s Zijin Mining. Both Zijin and Ivanhoe would now be diluted pro rata by any sale of a further interest of up to 15% in Kamoa Copper SA as their interests would be held through Kamoa Holding Ltd. (that currently owns 95% of Kamoa Copper SA), and accordingly that entity’s interest in Kamoa Copper SA would be reduced as a result of an increased DRC state interest.
DRC mining ministers also suggested that a due diligence review be performed of Kamoa Copper SA. Ivanhoe said it does not believe that such a review is warranted, and should not delay the closing of its proposed transaction with Zijin.
The DRC government holds the remaining 5% free-carried interest in Kamoa Copper SA since 2012, in accordance with provisions of the country’s 2002 mining law.
The internationally acknowledged Kamoa discovery was announced in 2009 and it established the Kamoa district as an extension of the Central African Copperbelt. More than $330 million has been invested to date by Ivanhoe and Kamoa Copper in Kamoa’s exploration and mine planning. In September 2012, the DRC government granted the necessary exploitation permits, or mining licenses, for Ivanhoe’s development of the Kamoa project.