Ivanhoe Mines Strikes Deal With Zambia to Kickstart Copper Exploration

Zambia, already renowned for its abundant copper resources, has taken a significant step toward advancing its global copper production ambitions through a newly-formed partnership with Ivanhoe Mines (TSX: IVN). The mining firm announced the signing of a memorandum of understanding (MOU) with the Zambian Ministry of Mines and Minerals Development, setting the stage for Ivanhoe to begin exploratory work in the country.

The MOU, signed in a ceremony attended by Zambia’s Minister of Mines and Minerals Development, Paul Kabuswe, and Ivanhoe’s senior leadership, outlines a framework of collaboration between the two entities.

Ivanhoe Mines, known for its role in developing the world-class Kamoa-Kakula Copper Complex in the Democratic Republic of the Congo (DRC), is eyeing Zambia as the next major site for its expansion.

The MOU stipulates that Ivanhoe and the Zambian government will work together to co-develop mining projects, with a focus on ensuring sustainability and long-term economic benefits for local communities. The deal further emphasizes the sharing of data and resources, including access to geological data from Zambia’s comprehensive 750,000 square kilometer airborne geophysical survey launched earlier this year.

This partnership aligns with Zambia’s broader strategy to dramatically increase its copper output. Currently ranked as the world’s tenth-largest copper producer, Zambia aims to quadruple its annual production to reach 3 million tonnes by 2031. If successful, this increase would position the country as the second-largest copper producer globally, a leap that promises to transform Zambia’s economic standing.

President Hakainde Hichilema’s administration has emphasized the critical role of the mining sector in driving growth. Earlier in August,Hichilema announced the commencement of a nationwide aerial geophysical survey to map the nation’s mineral and water resources. The ambitious program, designed to provide a high-resolution understanding of Zambia’s untapped potential, serves as a bedrock for the government’s ambitious copper production targets.

Founder and Executive Co-Chairman Robert Friedland noted the parallels between the current venture in Zambia and Ivanhoe’s success in the DRC.

“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,” Friedland said during the announcement. “We turned what was previously believed to be an unmineralized region [in the DRC], into one of the world’s newest and most prolific copper production districts.”

This reference to the DRC’s Western Foreland shelf, where Ivanhoe’s geologists have uncovered more than 50 million tonnes of copper, underscores the potential the company sees in Zambia. Building on this success, Ivanhoe’s entry into Zambia signals high expectations for new discoveries, with Friedland expressing optimism about replicating this achievement.

Friedland added, “We are now entering Zambia, as well as Angola, where we have high conviction that new discoveries are waiting to be uncovered.”

Ivanhoe Mines last traded at $15.74 on the TSX.

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