Business
Ivanhoe Mines and Gecamines Sign New Agreement to Return the Ultra-High-Grade Kipushi Mine in the DRC to Production
Kipushi 2022 feasibility study highlights outstanding economic results from planned rebirth o...
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[{"type":"text","content":"Ivanhoe Mines and Gecamines Sign New Agreement to Return the Ultra-High-Grade Kipushi Mine in the DRC to ProductionKipushi 2022 feasibility study highlights outstanding economic results from planned rebirth of the historic Kipushi Mine, with two-year development timelineKipushi will be the world's highest-grade major zinc mine, with average grade of 36.4% zinc over the first five yearsLife-of-mine average annual zinc production of 240,000 tonnes with C1 cash costs of US$0.65/lb of payable zincAfter-tax NPV8% of US$941 million and IRR of 41%, based on long-term zinc price of US$1.20/lb, with pre-production capital cost of US$382 millionAfter-tax NPV8% of US$2.3 billion and IRR of 73% at current spot zinc price of approximately US$1.67/lbKipushi to be fully powered by clean hydroelectricity, aligning with Ivanhoe's vision to produce \"green metals\" Feasibility study based only on zinc-rich resources, including the renowned Big Zinc Zone; significant potential upside from copper-and silver-rich orebodies with future exploration Kipushi, Democratic Republic of Congo--(Newsfile Corp. - February 14, 2022) - Ivanhoe Mines (TSX: IVN) (OTCQX: IVPAF) Executive Co-Chair Robert Friedland and President Marna Cloete, together with Alphonse Kaputo Kalubi (Chairman) and Bester-Hilaire Ntambwe Ngoy Kabongo (CEO) of Gécamines, DRC's state-owned mining company, are pleased to announce that Kipushi Holding, an Ivanhoe Mines wholly-owned subsidiary, and Gécamines have signed a new agreement to return the ultra-high-grade Kipushi Mine back to commercial production. Kipushi will be the world's highest-grade major zinc mine, with average grade of 36.4% zinc over the first five years of production.Watch a new video showcasing Kipushi's planned transformation into the world's highest-grade major zinc mine: https://vimeo.com/676846621/282541f745 The new agreement sets out the commercial terms that will form the basis of a new Kipushi joint-venture agreement establishing a robust framework for the mutually beneficial operation of the Kipushi Mine for years to come, and is subject to execution of definitive documentation.Alphonse Kaputo Kalubi commented: \"We recently have witnessed Ivanhoe's outstanding achievements in transforming the Kamoa-Kakula joint venture into a state-of-the-art copper producer applying the highest standards, now a benchm...