Glencore to fund restart of world’s highest grade zinc Mine at Kipushi
Glencore and Ivanhoe Mines have entered into off-take and financing agreements to restart Kipushi, the highest grade zinc mine in the world, located in the Democratic Republic of Congo.
Glencore will fund the operation with a $250 million loan, repayable by 2028, and will take all of the mine’s zinc concentrate for five years. Kipushi, which is 68% owned by Ivanhoe and the remainder held by state-owned Gécamines, will mine a global-leading 36% zinc over the first five years of production.
The mine, which is near the Zambian border in far southern Haut-Katanga province, is expected to produce 3.3 million tonnes of zinc metal in concentrate over a 14-year mine life, yielding 10.8 million tonnes of ore at an average head grade of 31.9% zinc.
The operation is ahead of schedule and is planned to start mining in January 2024, followed by the first concentrate deliveries in the third quarter.
Ivanhoe is considering interim bank financing of up to $80 million and is working with Haut-Katanga to develop a dedicated commercial border crossing into Zambia at Kipushi to avoid shipping costs and congestion at Kasumbalesa and Sakania.
