Ivanhoe Mines Resuscitates A Century-Old Kipushi Mine To Start Zinc Production
Portfolio Pulse from Stjepan Kalinic
Ivanhoe Mines (OTC:IVPAF) has entered into a joint venture with Gécamines to revive the Kipushi mine in the DRC, inactive for 30 years. The mine is known for its rich zinc orebody and other metals. Gécamines will increase its stake in Kipushi Corporation to 38%, and eventually to 80% after certain reserves are mined. Production is expected to start in Q2 2024 with an annual output of over 250,000 tons of zinc. However, the zinc market is currently facing challenges with flat prices and oversupply predicted for 2024.
January 17, 2024 | 5:16 pm
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Ivanhoe Mines has signed a JV with Gécamines to resume operations at Kipushi mine, with production expected in Q2 2024. The company's stake will eventually decrease to 20% as Gécamines' share grows.
The news of restarting the Kipushi mine could be seen as positive due to the potential future revenue from zinc production. However, the current zinc market conditions and predictions of flat prices and oversupply in 2024 may temper investor enthusiasm in the short term. Additionally, the dilution of Ivanhoe Mines' stake in the project could be viewed negatively by some investors.
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