Ivanhoe Mines Announces MOU with Govt of Zambia to Facilitate Exploration & Development Activities
Lusaka, Republic of Zambia–(Newsfile Corp. – September 10, 2024) – Ivanhoe Mines (TSX: IVN) (OTCQX: IVPAF) Executive Co-Chairman Robert Friedland and President Marna Cloete announced today that on August 26, 2024, a memorandum of understanding (MOU) was signed with the Ministry of Mines and Minerals Development (Ministry of Mines) of the Government of the Republic of Zambia to support Ivanhoe Mines in commencing exploration activities in the country.
The signing ceremony was attended by the Minister of the Ministry of Mines and Minerals Development, Hon. Paul Kabuswe MP, and Permanent Secretary Dr. Hapenga Kabeta, as well as members of Ivanhoe Mines’ senior management team.
The MOU outlines how Ivanhoe Mines intends to co-develop prospective projects together in partnership with the Ministry of Mines, to ensure the long-term sustainable development of Zambia’s mineral resources, while providing a sustainable contribution to the Zambian economy and its communities.
In parallel with the signing of the MOU, Ivanhoe Mines has applied for a significant exploration licence package in Zambia, with adjudication and award targeted by year-end.
The MOU includes commitments by the Ministry of Mines to share information, identify prospective land packages, provide access to existing and new geological data collected by the Zambian Government (including the recently announced 750,000-km2 country-wide airborne geophysical survey), provide guidance and support in relation to the application of new licences, as well as provide a stable and predictable fiscal and regulatory environment.
Following successful exploration or mining licence applications, Ivanhoe Mines intends to invest in exploration and project development activities following the same model of success that led to the discovery and development of the world-class Kamoa-Kakula Copper Complex in the Democratic Republic of the Congo.
In doing so, Ivanhoe will comply with all applicable legislation and conduct exploration activities in collaboration with the Geological Survey of Zambia, with a view to co-developing viable projects in a joint venture with the Government of Zambia.
On August 14, 2024, the President of the Republic of Zambia, H.E. Hakainde Hichilema, announced the start of a nationwide high-resolution aerial geophysical survey to map the country’s mineral and water resources.
The program is part of the nation’s target of quadrupling annualized copper production to achieve 3 million tonnes by 2031. This achievement would rank Zambia as the second-largest copper producer globally, compared with tenth as projected for 2024 as shown in Figure 1.
Figure 1. Projected global copper mine production by country in 2024 (‘000 tonnes of copper)
The Republic of Zambia’s Minister of Mines and Minerals Development, Hon. Paul Kabuswe MP commented:
“The MOU is more than just an agreement on paper; it is a promise and commitment to work together in good faith, to build on shared interests, and to strive for excellence in all our endeavours.
The Zambian Government, through the Ministry of Mines, remains committed to supporting investors by providing the necessary regulatory frameworks and infrastructure that will enable such investments to flourish.
“Zambia is open for business and committed to maintaining an environment that attracts and retains investment by demonstrating our readiness to work with industry leaders like Ivanhoe Mines to realize the full potential of our natural resources.
“The Government of Zambia stands ready to support Ivanhoe Mines every step of the way, to ensure that its investment not only thrives but also contributes meaningfully to the growth and development of our nation.”
Ivanhoe Mines Founder and Executive Co-Chairman Robert Friedland commented:
“Ivanhoe Mines is just getting started in expanding our global exploration footprint to discover more of the vital green metals that the world so desperately needs for advanced industrialization and electrification.
Over the past 20 years, our geologists have discovered over 50 million tonnes of copper under the western edge of the Central African Copperbelt in the Democratic Republic of the Congo… an area we now call the Western Foreland shelf.
Leveraging our decades of experience, and by thinking outside the box, we turned what was previously believed to be an unmineralized region, into one of the world’s newest and most prolific copper production districts.
We are now entering Zambia, as well as Angola, where we have high conviction that new discoveries are waiting to be uncovered.
“The spirit of this agreement is the same as the partnership we embarked upon with the Government of the Democratic Republic of the Congo when we started exploring and developing Kamoa-Kakula … which is fast becoming the world’s third largest copper mine, only three years since we commenced production … this industry-leading feat would have not been possible without first forming strong partnerships with our host governments and communities.”
