Dispute Emerges Between Ivanhoe and Zijin Over Kamoa-Kakula Copper Mine Impact
On Friday, May 23, 2025, Zijin Mining announced it expects a “negative impact” on production forecasts at the Kamoa-Kakula copper mine in the Democratic Republic of Congo (DRC).
The announcement follows a seismic event that led to a temporary suspension of underground operations.
However, this assessment is disputed by Ivanhoe Mines, Zijin’s joint venture partner and the operator of the mine.
Ivanhoe has reiterated its 2025 copper production target of 520,000 to 580,000 tonnes, stating that the temporary slowdown earlier in the week has not altered these expectations.
Zijin’s statement described “multiple roof-falling and rib-spalling” in the eastern section of the Kakula mine, but Ivanhoe firmly rejected this characterization.
In a press release issued the same day, Ivanhoe clarified that inspections conducted by its senior management and geotechnical specialists show no evidence of collapsing stopes or structural pillars.
“Preliminary indications suggest that seismic activity… resulted in a redistribution of forces underground and caused ‘scaling’, or rock falls, from the sidewalls of certain mining areas,” Ivanhoe stated. The company emphasized that the damage was limited and superficial.
Operational teams are now focused on repairing damage to underground pumping infrastructure, including cables and pipework.
Once this work is complete, mining operations are expected to resume—starting with the western side of the Kakula mine.
Zijin, meanwhile, indicated that it may hire external experts to conduct its own investigation into the causes of the seismic event and assess long-term mining methods, backfilling procedures, hydrogeological controls, and production planning.
This approach suggests a possible reassessment of Ivanhoe’s practices—an interpretation Ivanhoe has disputed.
Despite the divergence, Ivanhoe has stated it will determine whether the temporary suspension will impact annual production guidance once its underground investigation concludes. A more detailed operational update is expected on Tuesday, May 27, 2025.
Market reaction has been swift. Ivanhoe’s share price declined roughly 10% over the past five days, contrasting with a monthly gain of 0.86%.
The disagreement underscores rising tensions between the two major stakeholders of Kamoa Copper, the joint venture that owns the mine.
Ivanhoe and Zijin each hold a 39.6% direct stake, but Zijin’s additional shareholding in Ivanhoe raises its total economic interest in the project to 44.45%.
The Congolese government holds a 20% stake and has not yet commented on the incident.
In 2024, the Kamoa-Kakula complex generated a net profit of 1.72 billion yuan (approximately USD 238 million) for Zijin, accounting for 5.37% of its annual net profit—highlighting the project’s significance to both partners.
