What's Happening?
Ivanhoe Mines has announced the completion of its debottlenecking programme at the Kipushi zinc mine in the Democratic Republic of Congo. The programme was finished ahead of schedule and under budget, significantly improving zinc production from the Kipushi concentrator. The engineering work began in September 2024, aiming to increase the concentrator throughput rate by 20%, from 800,000 t/y to 960,000 t/y of ore. The construction was completed in early August, following a final shutdown to commission new equipment. The upgrades have notably increased the availability of the dense media separation circuit, boosting concentrator recoveries to over 90%. Since the completion, Kipushi has set multiple production records, including a record 5,545 t of zinc in concentrate produced in seven days, equivalent to a yearly production rate of about 290,000 t of zinc.
Why It's Important?
The successful completion of the debottlenecking programme at Kipushi is significant for the global zinc market, as it positions the mine as one of the largest zinc producers worldwide. This development could impact zinc prices and supply chains, benefiting industries reliant on zinc, such as construction and manufacturing. The increased production capacity may also enhance Ivanhoe Mines' competitive position in the mining sector, potentially leading to increased revenue and market share. Furthermore, the achievement of an industry-leading safety record during the project underscores the importance of safety in mining operations, setting a benchmark for other companies.
What's Next?
Ivanhoe Mines plans to continue electrical upgrades with additional backup generator capacity expected to be commissioned in the fourth quarter. This will support operations during grid instability, ensuring consistent production rates. The company anticipates maintaining its 2025 production guidance of 180,000 t to 240,000 t of zinc. Additionally, Ivanhoe has signed a three-year offtake agreement with Mercuria, securing a portion of Kipushi's zinc concentrate production, which may lead to further strategic partnerships and financial stability.
