Ivanhoe Mines (TSX: IVN) indicated this morning that a debottlenecking initiative at their Kipushi Zinc Mine in the DRC has been completed after nearly a year. The program was focused on boosting the concentrator throughput rate by 20% from prior levels.
With the program now complete after an early August shutdown, Kipushi has reportedly seen its production rate rise from 800,000 to 960,000 tonnes of ore per year. In the seven days following the shutdown, 5,545 tonnes of zinc in concentrate was produced, a production level that if sustained equates to 290,000 tonnes of zinc production a year. That rate would make Kipushi the fourth largest zinc mining operation globally if sustained.
Annual production guidance for the mine meanwhile is to remain in the range of 180,000 to 240,000 for 2025.
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Outside of the debottlenecking initiative, the August shutdown also saw improvements made to the dense media separation circuit to improve equipment availability. The upgrade was required after fine material in the ore feed was found to be causing blockages within the circuit. The upgrades have reportedly resulted in circuit availability rising from 70% to 96%, which has enabled concentrator recoveries to climb above 90%.
Separately, backup electrical upgrades continue on site, with the installation of six megawatts in backup generator capacity expected to be operational by year end.
Ivanhoe also indicated this morning that a three year offtake agreement was signed in July with Mercuria of Switzerland. The arrangement is for up to one third of the remaining allocated offtake from Kipushi. Mercuria also provided a loan facility of $20 million to Kipushi Corporation for the term of the contract agreement, with interest rates set at SOFR plus 6%.
Ivanhoe Mines last traded at $12.00 on the TSX.
Information for this story was found via Sedar and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
