AFC Invests in Kamoa-Kakula, Africa’s Largest Copper Deposit
Kamoa-Kakula is a world-class, high-grade, low-carbon underground copper deposit located on the western edge of the prolific Central African Copperbelt.
KINSHASA, Democratic Republic of the Congo, June 26, 2024/ — Africa Finance Corporation (AFC), the leader in infrastructure solutions on the continent, has announced the closing of a $150 million senior loan agreement with Kamoa Copper to support the expansion of the Kamoa-Kakula copper deposit in the Democratic Republic of the Congo.
The loan provided by AFC, which acted as the financier and arranger, demonstrates its commitment to supporting the local beneficiation of Africa’s abundant mineral resources to realize the continent’s potential for economic prosperity.
Kamoa-Kakula is a world-class, high-grade, low-carbon underground copper deposit located on the western edge of the prolific Central African Copperbelt.
Production began in July 2021, and the site is currently undergoing a third phase of expansion, which includes a 33% increase in copper production capacity to over 600,000 tonnes per annum (tpa), and the construction of Africa’s largest copper smelter with a capacity of 500,000 tpa of copper anodes with 99% purity.
The expansion also includes the recommissioning of a 178-megawatt (MW) renewable hydropower production capacity through the refurbishment of turbine No. 5 at the Inga II dam.
Phase 3 is expected to be completed by the end of 2024, making Kamoa-Kakula Africa’s largest copper producer and the third largest globally.
Kamoa-Kakula is operated as a joint venture between Ivanhoe Mines, Zijin Mining, and the government of the Democratic Republic of the Congo.
The operation continues to generate exceptional returns and has enabled expansions that meet budgetary requirements and are ahead of schedule.
Additionally, its long-term approach makes it a perfect example of responsible mining activity on the African continent. Its full-time workforce is 91% Congolese, and over $600 million has been paid in taxes and royalties to the DRC since operations began. In 2023, Kamoa-Kakula directly accounted for 4% of the national GDP.
The site is also among the lowest GHG emitters globally per tonne of copper produced, according to independent firms Skarn Associates in London, England, and WSP Group in Montreal, Canada.
“This is a major milestone in our mission to develop infrastructure ecosystems that contribute to integrating economies and driving economic transformation in Africa,” said Samaila Zubairu, President and CEO, AFC.
“Copper is one of the essential minerals for the global energy transition, and this mining expansion will not only strengthen Africa’s position in the global copper market but also bring the continent closer to the net-zero emissions goal while creating job opportunities and generating significant revenue for the DRC.”
AFC’s participation in the Kamoa-Kakula project underscores the company’s essential role in developing infrastructure that drives industrialization and enhances the continent’s competitiveness.
At the end of 2023, Kamoa-Kakula became the first industrial user of the Lobito Atlantic rail corridor, a line connecting the DRC’s Copperbelt to the Atlantic port of Lobito, Angola.
AFC acted as the financial advisor to the Trafigura, Mota-Engil, and Vecturis consortium, which secured a 30-year concession for rail services and logistics.
The use of the Lobito Atlantic rail corridor is expected to significantly reduce the logistics costs and carbon emission intensity of mineral product exports from the DRC’s Copperbelt.
