China’s Zijin Mining will buy a 49.5% stake in Kamoa Holding Limited, a subsidiary of Ivanhoe Mines that presently owns 95% of the Kamoa copper project in the Democratic Republic of Congo, for $412 million.
Zijin will make the purchase through its wholly-owned Hong Kong subsidiary Gold Mountain, Ivanhoe said in an announcement on Tuesday May 26. The deal awaits approval from the Chinese government.
The development of the Kamoa project has been divided into two phases. The first phase requires an investment of about $1.4 billion. Ivanhoe has so far invested approximately $337 million in equity capital in discovering and developing the Kamoa Project.
The second phase includes mine expansion, as well as construction of a smelter to produce approximately 300,000 tpy of blister copper.
“This agreement with Zijin, one of the world’s most accomplished miners, is further confirmation of Kamoa’s distinction as one of the most significant, undeveloped mineral discoveries of our age and charts a course for the realisation of significant benefits for all of Ivanhoe’s and Zijin’s stakeholders as well as the Congolese people,” Robert Friedland, Ivanhoe chairman, in the statement.
China’s Zijin Mining is a large-scale mining group headquartered in the Fujian province. It produces copper, gold, zinc, tungsten and iron ore.
Zijin on the same day also announced to have purchased 50% stake in Barrick’s Porgera gold mine in Papua New Guinea and it will raise 10 billion yuan ($1.6 billion) through a private placement on A-share. Source: Bloomberg