Out of all the other mining jurisdictions available, why did you choose to develop projects specifically in the DRC?
Ivanhoe Mines was initially present in various jurisdictions throughout the African continent, but we found the most success in the DRC, and especially at Kamoa-Kakula, which we discovered in 2008. We have continued to see the benefits from it ever since. The strategic partnerships we formed with Zijin Mining, CITIC Metal and the government of the Democratic Republic of Congo gave us the ability to fund the development of what is anticipated to be the third largest copper project in the world by 2025. In this day and age, it is very difficult to raise capital as a junior mining company, particularly in what some investors would consider risky jurisdictions. Nevertheless, we managed to bring online the copper-endowed mine of Kamoa-Kakula at a critical time when the entire society's green transition is highly dependent on this resource. Part of our success is due to the flat structure that allows us to be nimble and make quick decisions. Besides the ~14,000 local people that work on our site, we also run agricultural projects, and we start various businesses for the community. In addition, just last year alone, we contributed over 4% to the GDP of the DRC.
What was Ivanhoe's experience developing mining projects in Africa, especially regarding the support coming from the political side?
Investing time to make sure the policy makers understand the effect of what we do opened up many doors for our company. By showing value, we were able to obtain a public-private partnership through which the government is refurbishing the electrical infrastructure. The energy produced has a power rebate, and it also goes into the main grid, thus mitigating instability issues and creating the capacity to bring new projects online. Once you invest into a country and obtain collective success, the individual mining projects are sure to flourish. Having had the experience with the industrialization of Europe and the United States, we can now develop Africa in a more environmentally and socially responsible way.
Besides Kamoa-Kakula, are there any other locations that are particularly promising?
In South Africa we have the Platreef project which is a tier-one discovery of platinum-group metals, nickel, copper, and gold. It is expected to be brought into production in the third quarter of next year, and we are currently performing a study to accelerate its development, and we have already have offtake agreements for the Phase 1 operation. Kipushi is another project we are developing in the DRC. It is a historic copper-zinc mine that also has silver, germanium and gallium. It is on track for production at the same time as Platreef. Kamoa-Kakual’s annualized production is on track to be between 390,000 and 430,000 tonnes of copper in 2023, but it should rise to around 650,000 tonnes following the Phase 3 expansion. Besides these, our joint venture is building Africa’s largest direct-to-blister smelter at Kamoa-Kakula, and we are opening new mining areas to feed the Phase 3 concentrator that is under development.
Do you think we will soon face an irreconcilable gap in the supply for copper in the wake of the energy transition?
As we move towards this widely reported looming copper deficit, we will need to have companies that can execute projects quicker than in the past. The days when a mining project took 25 years from proposition to implementation are over, because today we need to move much faster in order to meet the overwhelming demand for raw materials. In order to address the massive supply deficit expected by 2030, we will have to find a number of other projects similar to Kamoa-Kakula and develop them as fast as possible. Even sites that have not been that productive in the past will have to be taken into consideration to multiply our efforts to support the green transition. It becomes gradually clear that the net zero targets imposed were not considered in relation to the supply that we currently have, or the future production potential our industry can muster.
What is it that you found particularly meaningful in the mining industry?
I was fortunate to start working for Ivanhoe at a young age with a small group of just ten people that evolved into the strong team that we are today. Working in mining is never boring because we are always busy with the next transaction, looking at what we can do differently to be even more ESG compliant and societally inclined. I am truly grateful to be able to get in touch with the creative side and the entrepreneurial spirit of the company. Knowing that we touch so many people's lives, and that we are able to leave a positive mark wherever we work is truly rewarding.
What role do you see the mining industry playing going forward?
Mining has been underestimated in terms of the role it will play in the change it will bring to the world. If in the past it was associated with dirty practices, today we live through the modern era of mining, where companies are much more socially responsible than they were in the past. However, there still is a communication barrier, and we cannot seem to make our value known to the wider public.
At Ivanhoe, we mine with greater purpose in jurisdictions where we are impacting lives in a way that is attractive even to the younger generation. The mining industry is the flour and the eggs of the proverbial cake that everybody wants to eat, but nobody is interested in knowing the ingredients that go into making it. It is in our responsibility as mine operators to make this industry attractive enough because without it, the type of lifestyle we are used to cannot simply exist.
