Ivanhoe Mines and its joint-venture partner Zijin Mining Group have signed an agreement to transfer additional 15% stake of the Kamoa-Kakula Copper Project to the Democratic Republic of Congo (DRC) Government.
The deal increases DRC’s stake at Kamoa-Kakula Copper Project to direct 20%.
After this deal, Ivanhoe Mines and Zijin will hold an indirect 39.6% interest in the project, while Crystal River Global will continue to own an indirect 0.8% interest.
Ivanhoe Mines executive chairman Robert Friedland said: “This is a historically significant event for the people of the Democratic Republic of Congo.
“We now are united as partners committed to working closely together toward our shared objective of ensuring that the major copper discoveries we have made at Kamoa and Kakula during the past eight years can be predictably, efficiently and expeditiously developed into a world-scale mining venture with a lifespan of multiple generations.”
Under the deal, Kamoa Holding will transfer 300 Class A shares in the capital of Kamoa Copper that constitutes 15% of Kamoa Copper’s share capital to the DRC government against nominal cash payment and other guarantees.
Ivanhoe Mines CEO Lars-Eric Johansson said: “The agreement paves the way to fulfill Kamoa-Kakula’s promise of decades of substantial, long-lasting, economic and social benefits for the Congolese people and the strengthening of the national government’s capacity to support the development of international trade and building of the country.”
The parties also agreed that 300 Class A shares shall be non-dilutable until five years from the start date of commercial production.
Now, the DRC Government will provide complete support to develop the Kamoa-Kakula Copper Project.
The government also reaffirmed Kamoa Copper’s mineral tenements and guaranteed that the project would not pay any taxes or duties other than those legally required by the applicable statutory and regulatory provisions for the life of the project.
Image: A copper mine in Congo. Photo: courtesy of French Wikipedia.