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Globe and Mail
6 days ago
- Business
- Globe and Mail
Kamoa-Kakula Management are Advancing Works to Reopen the Western Side of Kakula Mine
Installation of additional underground pumping complete; water levels set to stabilize Phase 1 and 2 concentrators continue to be supplied by stockpiles, and will be supported by ore from western side of Kakula Mine Ivanhoe Mines to provide next week plans for reopening the western side and restart of the eastern side of Kakula Mine Kolwezi, Democratic Republic of the Congo--(Newsfile Corp. - June 2, 2025) - Ivanhoe Mines (TSX: IVN) (OTCQX: IVPAF) announces today that following the temporary suspension of underground operations at the Kakula Mine announced on May 20, 2025, senior management continues to work alongside world-leading engineering experts to safely and conservatively restart mining operations. Kamoa Copper's engineering teams are currently updating the short-, medium-, and long-term plans to resume operations on both the western and eastern sides of the Kakula Mine. Subject to dewatering progress, underground mining is expected to restart later this month on the western side of the mine, which remains dry and supported by over 1,000 litres per second of operational pumping capacity. Operations on the eastern side of the Kakula Mine are expected to restart once dewatering is complete. Kamoa Copper has implemented a two-stage plan to dewater the entire Kakula Mine: Stage One involves the installation of temporary underground pumping infrastructure to stabilize and maintain current water levels. Stage One was completed today, with total underground pumping capacity increasing to approximately 4,400 litres per second, sufficient to manage water inflows. Stage Two involves the installation of high-capacity, surface-mounted pumps and new permanent infrastructure to fully dewater the entire Kakula Mine. Stage Two is already underway. Kamoa Copper has ordered four high-capacity pumps, each rated at 650 litres per second. Additional pumps will also be ordered as part of the long term pumping infrastructure plan. These pumps will be deployed in pairs and installed in existing ventilation shafts that access the water catchment areas of the Kakula Mine. Delivery and installation of the surface pumps is expected within 90 days. Meanwhile, the Phase 1 and 2 concentrators continue to operate at approximately 50% of their combined capacity, processing ore from surface stockpiles. Ore from the western side of the Kakula Mine will be fed into the concentrators once underground operations restart. Since mining operations began at Kakula in 2021, crews have completed over 18 months' worth of underground development ahead of the mine plan. This extensive advance development provides significant operational flexibility, allowing access to multiple production areas as they are deemed safe for re-entry. Mining operations at the Kamoa underground mine and ore processing at the adjacent Phase 3 concentrator remain unaffected and continue as normal. Ivanhoe Mines to provide next week plans for reopening the western side and the restart of the eastern side of the Kakula Mine Senior management from Ivanhoe Mines and the Kamoa Copper joint venture, together with world-class geotechnical specialists, are in the process of concluding their thorough, conservative geotechnical assessment of the Kakula Mine. The results of the assessment, as well as the restart plans for the western and eastern sides of the Kakula Mine are expected next week. About Ivanhoe Mines Ivanhoe Mines is a Canadian mining company focused on advancing its three principal projects in Southern Africa; the expansion of the Kamoa-Kakula Copper Complex in the DRC, the ramp-up of the ultra-high-grade Kipushi zinc-copper-germanium-silver mine, also in the DRC; and the phased development of the tier-one Platreef platinum-palladium-nickel-rhodium-gold-copper Mine in South Africa. Ivanhoe Mines is exploring for copper in its highly prospective, 54-100% owned exploration licences in the Western Forelands, covering an area over six times larger than the adjacent Kamoa-Kakula Copper Complex, including the high-grade discoveries in the Makoko District. Ivanhoe is also exploring for new sedimentary copper discoveries in new horizons including Angola, Kazakhstan, and Zambia. Follow Robert Friedland (@robert_ivanhoe) and Ivanhoe Mines (@IvanhoeMines_) on X. Forward-looking statements Certain statements in this news release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the company, its projects, or industry results to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified using words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events, or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect the company's current expectations regarding future events, performance, and results and speak only as of the date of this news release. Such statements include, without limitation: i) statements that water levels are set to stabilize; ii) statements regarding the operating capacity of the Phase 1 and 2 concentrators, processing of stockpiles and that Ore from the western side of the Kakula Mine will be fed into the concentrators once underground operations restart; iii) statements regarding plans to resume mining operations in the western section of Kakula; iv) statements regarding the water inflow rate and the pumping capacity being sufficient to stabilize current water levels; v) statements regarding the procurement, deployment, installation and delivery of high-capacity pumps; vi) statements regarding the timing of conclusions by senior management and geotechnical specialists, as well as the timing and the stages for restart plans for the western and eastern sides of Kakula mine; and (vii) statements that the company will provide plans for reopening the western and eastern sides of Kakula Mine next week. Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indicators of whether such results will be achieved. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to: (i) uncertainty around the rate of water ingress into underground workings; (ii) the ability, and speed with which, additional equipment can be secured; (iii) the continuation of seismic activity; (iv) the state of underground infrastructure; (v) uncertainty around when future underground access can be secured; (vi) future mine stability cannot be guaranteed; and (vii) future mining methods, may differ the impact on Kakula operations. Additionally, the factors discussed above and under the "Risk Factors" section in the company's MD&A for the three months ended March 31, 2025, and its current annual information form, and elsewhere in this news release, as well as unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; changes in the rate of water ingress into underground workings; the continuation of seismic activity; the state of underground infrastructure; delays in securing underground access; changes to the mining methods required in the future; the failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations. Although the forward-looking statements contained in this news release are based upon what management of the company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release. The company's actual results could differ materially from those anticipated in these forward-looking statements as a result of the factors outlined in the "Risk Factors" section in the company's MD&A for the three months ended March 31, 2025, and its current annual information form.
Yahoo
26-05-2025
- Business
- Yahoo
Ivanhoe Mines Responds to Inaccuracies Made in a Press Release by Zijin Mining About Kamoa-Kakula's Operations
Ivanhoe Mines to provide a detailed update on Kamoa-Kakula operations by Tuesday, May 27, 2025 Kolwezi, Democratic Republic of the Congo--(Newsfile Corp. - May 23, 2025) - Ivanhoe Mines (TSX: IVN) (OTCQX: IVPAF) today provides clarification to inaccuracies made in a press release by Zijin Mining released earlier today. The press release was made in relation to the temporary suspension of operations at the Kakula underground mine, as announced by Ivanhoe Mines on Tuesday, May 20, 2025, at the Kamoa-Kakula Copper Complex in the Democratic Republic of the Congo. The press release by Zijin Mining refers to "…multiple roof-falling and rib-spalling in the eastern section of the [Kakula] mine." Ivanhoe Mines does not agree with this statement. Ivanhoe Mines and Kamoa Copper senior management, supported by geotechnical specialists, continue to conduct a thorough inspection of the Kakula underground mine, which commenced on May 20, 2025. The inspection is ongoing and has been advancing further into the eastern section of the mine. Results so far show that there is no evidence of collapsing stopes or structural pillars. Preliminary indications suggest that seismic activity, which was experienced during the last week and has subsequently subsided, resulted in a redistribution of forces underground and caused "scaling", or rock falls, from the sidewalls of certain mining areas. The operational teams are currently focused on safely repairing damage caused to the cables and pipework that support the underground pumping infrastructure. Once this activity is complete, focus will shift to returning to normal mining operations starting with the western side of the Kakula Mine. Once the underground investigation is completed, Ivanhoe Mines will determine whether the temporary suspension of underground operations will impact annual production guidance of the Kamoa-Kakula Mining Complex. Ivanhoe Mines will provide a more detailed update by Tuesday May 27, 2025. About Ivanhoe Mines Ivanhoe Mines is a Canadian mining company focused on advancing its three principal projects in Southern Africa; the expansion of the Kamoa-Kakula Copper Complex in the DRC, the ramp-up of the ultra-high-grade Kipushi zinc-copper-germanium-silver mine, also in the DRC; and the phased development of the tier-one Platreef platinum-palladium-nickel-rhodium-gold-copper Mine in South Africa. Ivanhoe Mines is exploring for copper in its highly prospective, 54-100% owned exploration licences in the Western Forelands, covering an area over six times larger than the adjacent Kamoa-Kakula Copper Complex, including the high-grade discoveries in the Makoko District. Ivanhoe is also exploring for new sedimentary copper discoveries in new horizons including Angola, Kazakhstan and Zambia. Follow Robert Friedland (@robert_ivanhoe) and Ivanhoe Mines (@IvanhoeMines_) on X. Information contact Investors Vancouver: Matthew Keevil +1.604.558.1034 London: Tommy Horton +44 7866 913 207 Media Tanya Todd +1.604.331.9834 Forward-looking statements Certain statements in this news release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the company, its projects, or industry results to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified using words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events, or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect the company's current expectations regarding future events, performance, and results and speak only as of the date of this news release. Such statements include, without limitation: i) statements regarding Ivanhoe Mines to provide a detailed update on Kamoa-Kakula operations by Tuesday, May 27, 2025; ii) statements regarding the operational teams are currently focused on safely repairing damage caused to cables and pipework that support the underground pumping infrastructure. Further, that once this activity is completed, focus will shift to returning to normal mining operations starting with the western side of the Kakula Mine; and, iii) statements regarding once the investigation is completed, Ivanhoe Mines will determine whether the temporary suspension of underground operations will impact annual production guidance. Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indicators of whether such results will be achieved. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to, the factors discussed above and under the "Risk Factors" section in the company's MD&A for the three months ended March 31, 2025, and its current annual information form, and elsewhere in this news release, as well as unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations. Although the forward-looking statements contained in this news release are based upon what management of the company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release. The company's actual results could differ materially from those anticipated in these forward-looking statements as a result of the factors outlined in the "Risk Factors" section in the company's MD&A for the three months ended March 31, 2025, and its current annual information form. To view the source version of this press release, please visit Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26-05-2025
- Business
- Yahoo
Underground Mining Activities at Kakula Mine Suspended; Remediation Work Continues in Western Section of Kakula
Phase 1 and 2 concentrators continue operating, supplied by stockpiles Operations at Kamoa Mine and Phase 3 concentrator continue normal operations Ivanhoe Mines and Zijin committed to restore Kakula Mine back into production as soon as safely possible Kolwezi, Democratic Republic of the Congo--(Newsfile Corp. - May 26, 2025) - Ivanhoe Mines (TSX: IVN) (OTCQX: IVPAF) Executive Co-Chairman Robert Friedland and President and Chief Executive Officer Marna Cloete today provide an operational update on the Kamoa-Kakula Copper Complex in the Democratic Republic of the Congo, following the temporary suspension of operations at the Kakula underground mine, as first announced by the company on May 20, 2025. Senior management and a world-class team of geotechnical experts continue to conduct a thorough investigation of the mine to understand the cause and effect of the seismic activity. Seismic activity at the Kakula underground mine has continued to occur intermittently over the past few days. Given the recent seismic activity, underground activities were suspended again on Saturday, May 25, 2025, with employees safely brought above ground and mobile equipment removed from the mine workings. The safety of employees and contractors remains paramount, and zero lost time injuries have been reported. Preliminary indications are that seismic activity at the Kakula underground could potentially continue for weeks, which would inhibit access to the mine and prolong the temporary suspension of operations at Kakula. As a result of the impact on underground pumping and electrical infrastructure, to date, there has been an increase in water inflow levels into the Kakula underground mine. Kamoa Copper, with support from Ivanhoe and Zijin Mining, is currently preparing detailed dewatering plans, including the acquisition of additional pumping equipment to increase pumping capacity and allow for dewatering from surface. Ivanhoe would like to thank its Chinese partners Zijin and CITIC Metal for their assistance in procuring additional equipment for the dewatering efforts. Ivanhoe Mines' President and Chief Executive Officer, Marna Cloete commented: "I would like to extend my profound thanks to our dedicated workforce, who have shown exceptional resilience and commitment while working under challenging conditions during the recent seismic activity. The safety of our employees is our highest priority, and it is testament to the professionalism and focus of everyone at Kamoa Copper that we have recorded no injuries in a dynamic environment. "While underground mining operations are temporarily suspended at Kakula, we are focusing our efforts on maintaining pumping and water management infrastructure, including accelerating procurement for dewatering equipment from surface. We are working around the clock with the world's foremost geotechnical experts to establish the cause of the issues we faced and how we will resolve them. "We maintain significant optionality to maintain Kakula's concentrator operations from surface stockpiles, or potentially temporarily re-deploy Kakula employees and equipment to Kamoa Mine, which continues uninterrupted." Ivanhoe Mines' Founder and Executive Co-Chairman, Robert Friedland commented: "We are going to gain wisdom and experience from the events that have unfolded in the past week. Ivanhoe, together with our partner Zijin, is operating in complex, high-grade sedimentary copper systems on a scale not seen before globally. What has transpired will give us valuable insight into managing geotechnical conditions and maintaining critical pumping infrastructure, which will allow us to future-proof and safely restart mining operations at Kakula … and such learnings will be applied in earnest to our activities at Kamoa and in the Western Forelands. "I remind readers that SpaceX - today responsible for approximately 90% of total payload launched into space by humanity - did not attain this status without numerous setbacks. Each setback brought their team new knowledge, making the mission stronger... and so we approach our operations at Kamoa-Kakula with the same mindset. Together we plan to restore operations to be safer and stronger than ever." As underground areas are deemed safe for crews to return, the initial focus will be to inspect, repair, and restart pump stations and associated piping, as well as electrical substations and associated cabling. Remediation work continues in the shallower western sections of the Kakula Mine, where current dewatering rates are approximately 1,000 litres per second (L/s). Kamoa Copper's engineering team is focused on restoring underground pumping capacity to over 3,000 L/s, which is deemed sufficient to stabilize water levels. In parallel, the management team intends to install at all of our mines high-capacity pumping systems that can operate from surface as permanent infrastructure. Surface infrastructure at Kakula, including the Phase 1 and 2 concentrators and direct-to-blister smelter, remains completely unaffected. The Phase 1 and 2 concentrators are currently processing ore from surface stockpiles. Mining activities at the Kamoa underground mine and processing at the adjacent Phase 3 concentrator continue to operate normally. Kamoa-Kakula's 2025 production and cost guidance, along with the ramp-up schedule for the direct-to-blister smelter, have been withdrawn pending review. Ivanhoe will provide further updates as more information is available. Ivanhoe and Zijin continue to work collaboratively under a strong partnership at the joint-venture level and are committed to returning Kakula back to production as soon as safely possible. About Ivanhoe Mines Ivanhoe Mines is a Canadian mining company focused on advancing its three principal projects in Southern Africa; the expansion of the Kamoa-Kakula Copper Complex in the DRC, the ramp-up of the ultra-high-grade Kipushi zinc-copper-germanium-silver mine, also in the DRC; and the phased development of the tier-one Platreef platinum-palladium-nickel-rhodium-gold-copper Mine in South Africa. Ivanhoe Mines is exploring for copper in its highly prospective, 54-100% owned exploration licences in the Western Forelands, covering an area over six times larger than the adjacent Kamoa-Kakula Copper Complex, including the high-grade discoveries in the Makoko District. Ivanhoe is also exploring for new sedimentary copper discoveries in new horizons including Angola, Kazakhstan, and Zambia. Follow Robert Friedland (@robert_ivanhoe) and Ivanhoe Mines (@IvanhoeMines_) on X. Information contact Investors Vancouver: Matthew Keevil +1.604.558.1034 London: Tommy Horton +44 7866 913 207 Media Tanya Todd +1.604.331.9834 Forward-looking statements Certain statements in this news release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the company, its projects, or industry results to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified using words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events, or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect the company's current expectations regarding future events, performance, and results and speak only as of the date of this news release. Such statements include, without limitation: (i) statements that the Phase 1 and Phase 2 concentrators will continue to be supplied by stockpiles; (ii) statements that seismic activity at the Kakula underground if it continues for weeks, would inhibit access to the mine and prolong the temporary suspension of operations as Kakula; (iii) statements that once underground access is deemed safe, crews will focus on inspecting, repairing, and restarting pump stations and associated piping, as well as electrical substations and associated cabling; and, (iv) statements that Kamoa-Kakula's 2025 production and cost guidance, along with the ramp-up schedule for the direct-to-blister smelter, have been withdrawn pending review. In addition, that Ivanhoe will provide further updates as more information is available. Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indicators of whether such results will be achieved. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to; (1) uncertainty around the rate of water ingress into underground workings, (2) the ability, and speed of which, additional equipment can be secured, (3) the continuation of seismic activity, (4) the state of underground infrastructure, (5) uncertainty around when future underground access can be secured, (6) future mine stability cannot be guaranteed (7) future mining methods, may differ the impact on Kakula operations. The factors discussed above and under the "Risk Factors" section in the company's MD&A for the three months ended March 31, 2025, and its current annual information form, and elsewhere in this news release, as well as unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with the company to perform as agreed; social or labour unrest; unexpected geotechnical changes to mine operations, changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations. Although the forward-looking statements contained in this news release are based upon what management of the company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release. The company's actual results could differ materially from those anticipated in these forward-looking statements as a result of the factors outlined in the "Risk Factors" section in the company's MD&A for the three months ended March 31, 2025, and its current annual information form. To view the source version of this press release, please visit
Bloomberg
20-05-2025
- Business
- Bloomberg
Congo Gambles on Cobalt as US-China Metals Fight Heats Up
In the middle of a trade war, Congo is trying to woo Trump's White House without risking critical investment from Beijing. Photography by Arlette Bashizi Along the 63-mile highway between the towns of Kolwezi and Fungurume sit two towering symbols of China's stranglehold over resources in the southeast corner of the Democratic Republic of Congo: huge copper and cobalt mines owned by CMOC Group Ltd. But they only tell part of the story. A closer look reveals a road peppered with factories and warehouses for construction firms from Beijing, industrial equipment makers based in Shandong, and steel operators from the northern Chinese province of Hebei. State-owned behemoths rub shoulders with fortune-seekers from small-town China who have set up trading depots, casinos and hotels. In less than two decades, China has embedded itself at every level of the resources business in Congo's copper belt from the roadside artisanal-metal dealers to wholesalers and multinationals like Shanghai-headquartered CMOC, the biggest producer of cobalt in the world after usurping Glencore Plc in 2023. The country's politicians are now looking for new friends and have turned to an unlikely ally: Donald Trump's White House. Congo shocked commodity markets by banning all cobalt exports in February. CMOC executives in Shanghai only learned about the measure from a Bloomberg report, the company says. The four-month suspension was designed to resuscitate prices which had fallen toward record lows. It was also interpreted as a rebuke to CMOC — now an integral part of the Congolese economy — for far exceeding its already ambitious output targets and contributing to the freefall in prices. The move, authorized by President Felix Tshisekedi, reflected frustration that although Congo produces three-quarters of the world's cobalt, it is Chinese companies — not politicians in the capital Kinshasa — that shape global prices of a metal critical to the battery, defense and aerospace industries. The export ban, and the implicit criticism of Beijing, is a high-stakes gamble by Tshisekedi, say analysts and traders. 'The issue of African critical minerals has been a thorn in US-China relations,' says Yun Sun, director of the China program at the Stimson Center in Washington. 'The Trump Administration has made it a priority.' But China is decades ahead of the US when it comes to critical minerals. A potential White House deal for a stake in Congo's mineral output 'risks offending China,' adds Yun Sun. Without investment from China — CMOC alone has plowed about $9 billion into its mines since 2016 — Congo wouldn't have been able to triple its production of copper and boost cobalt output by almost as much in a decade. The two metals are extracted together in the country. Exports of copper and cobalt are equivalent to about 40% of Congo's GDP, according to the International Monetary Fund. The value of trade between the two countries stood at almost $27 billion in 2024, while Congo's trade with the US was just $820 million over the same period. Congo proposed a minerals-for-security deal to the US — inspired by a similar arrangement being discussed at the time with Ukraine — shortly before Washington unleashed its global trade war focused on Beijing in April. In theory, it would offer US companies access to Congo's minerals in exchange for unspecified support to end a conflict in the east of the country, where a rebel group backed by neighboring Rwanda has taken control of two major cities and multiple gold, tin and tantalum mining areas. The assault poses a serious threat to the Tshisekedi government. Congo's Soaring Production The foreign ministers of Congo and Rwanda travelled to Washington in late April to sign a 'declaration of principles' witnessed by Marco Rubio, the US Secretary of State, that committed both sides to working toward a peace agreement. Massad Boulos, Trump's senior adviser for Africa, said on April 17 that he and Tshisekedi had 'discussed a minerals deal and charted a path forward' that could see institutions like the US International Development Finance Corp. support private investments in Congo's mining sector and infrastructure. The US State Department was more blunt about the purpose of any deal, accusing Beijing of restricting access to key minerals and metals: 'China's control over critical mineral supply chains poses a significant threat to US industrial and technological capacity and cannot continue,' said a State Department spokesperson. The Chinese government disputes those claims. 'The international community can see clearly who is playing zero-sum games and who is profiting from conflict,' the country's foreign ministry said in a statement. It added that China's role in Congo has been 'open, transparent and lawful.' Dubbed the 'Saudi Arabia of cobalt', Congo is home to around 110 million people, and a vast array of mineral resources to power everything from wind turbines to next-generation weapons systems. In addition to cobalt, the country is the second-largest producer of copper, another critical ingredient in efforts to drive 21st century technologies. But concerns about conflict and corruption — amid grinding poverty and inadequate infrastructure — have often scared off Western companies. The country's leadership — which has improved relations with the West since Tshisekedi took office in 2019 — now see an opportunity to capitalize on Washington's open distrust of China's dominance in numerous metals markets. In March, with US support, Congo killed off the acquisition of a local copper-cobalt producer by a subsidiary of the Chinese weapons manufacturer Norinco Group, which already owns mines near Kolwezi. However a US-backed alternative bid is yet to materialize. CMOC's Congo Mines Dominate the Global Cobalt Market Any US push begins at a major disadvantage. China and its citizens have built an infrastructure of businesses, big and small, that have learned to thrive in Congo's challenging environment, which requires dealing with everything from corruption to rogue soldiers, potholed roads and political instability. Beijing's power over pricing also stems from the processing plants, battery facilities and electric vehicle factories it has spent decades building at home. More than 80% of global cobalt refining occurred in China last year, according to trading house Darton Commodities. This dominance has been cemented with cash. China extended $56.9 billion of credit and aid into 'transition mineral' projects worldwide between 2000 and 2021, according to AidData, a think-tank at William & Mary university in Virginia. 'Being dependent on one country puts you in a state of vulnerability,' says Christian-Geraud Neema Byamungu, an expert on Beijing's mining investments in Congo at the China-Global South Project, a research group. Belatedly, President Joe Biden's administration sought to counter China's grip amid escalating fears of supply shortages for some minerals. He introduced financial incentives to bolster domestic refining in the US, which doesn't possess the capacity to process cobalt. Investment for the Lobito Atlantic Railway, which links Kolwezi to the Angolan coast, was also pledged as Biden urged Western miners to reconsider getting involved in Congo's natural resources. Arizona-based EVelution Energy is vying to be one of the first US companies to open a domestic commercial-scale cobalt refining facility. It plans to begin in 2027 and expects to import from Congo. Gil Michel-Garcia, the firm's executive vice president, says a 'peace-for-minerals' deal would help 'secure vital critical minerals' for the US automotive, aerospace and defense industries, and 'derisk America's cobalt supply chain from China.' Boulos's emphasis on using the Development Finance Corp. echoes an approach that failed to spur any major US mining investments in Congo during Biden's term. Still, KoBold Metals, backed by Bill Gates, the Microsoft founder, and Amazon's Jeff Bezos — which had previously shown interest in Congo — says it now wants to invest more than $1 billion to develop a lithium deposit located 270 miles north east of Kolwezi. The government in Kinshasa is walking a tightrope. It wants to dilute the influence of Chinese companies over the nation's mining sector by attracting other outside investors, but without souring relations with its key trading partner. The talks with the US are part of Congo's wider push to diversify the economy, says Kizito Pakabomba, the country's mines minister, who wants to use any extra revenues from the sector to boost other areas including, 'agriculture, tourism and many other industries.' Cobalt and copper are exempt from the Trump tariffs but Moody's, the rating company, initially warned — before the cooling off in the US-China trade war last week — of the 'potential adverse effects' of the tariffs on demand for Congo's commodities if global growth is hit. Congo doesn't want to be in a position where it has to pick sides or swap one overmighty group of investors for another. 'The ultimate objective remains complete control of the cobalt value chain,' Tshisekedi told a meeting of his ministers in March. The country 'must cease to be a simple supplier of commodities and become a key actor in refining strategic minerals.' China's Stranglehold, From Pit to Processing That's easier said than done. For three decades until the 1990s, the US supported dictator Mobutu Sese Seko. Companies like General Motors Co., General Electric Co. and Citigroup Inc. all had operations or major projects in the country. Foreign investor interest waned as multilateral institutions turned away from Congo towards the end of the kleptocratic dictator's rule and the country veered towards civil conflict. After Mobutu was overthrown in 1997, Western companies flooded into Congo, trying to secure its mining assets on the cheap. Many eventually left, discouraged by the difficult business environment. Almost all that's left from the Mobutu era is a small Citibank branch in Kinshasa. During the 18-year presidency of Joseph Kabila, Tshisekedi's predecessor, this disengagement left the door open for Beijing, which has sought raw materials in its breakneck push for economic growth since the end of the twentieth century. China now dominates Congo's copper and cobalt sector both as miner and consumer. 'We have a good relationship with the Chinese,' says Angelo, a mining cooperative coordinator, who declines to provide his full name due to his involvement in illegal artisanal mining. He watches dozens of young men wearing sandals and broken plastic boots emerge from an illegal open-pit mine, close to CMOC's giant Kisanfu operation. On their backs, they carry dirty white sacks of raw copper and cobalt ore. 'We make a good living doing this,' he says of his workers who operate 24 hours a day, seven days a week. 'Our life is stable because of this.' The artisanal sector — which is loosely regulated and often generally in breach of Congolese laws that prohibit small scale mining on industrial sites — accounted for about 10% of Congo's cobalt output in 2018, but falling prices and attempts to formalize the sector mean that has shrunk to about 2%, according to Benchmark Mineral Intelligence. But it remains significant to the local economy. Angelo says he handles the logistics for 30,000 artisanal workers — who dig for ore using rudimentary tools. Some estimates suggest there could be well over 200,000 artisanal cobalt miners in the country. They often work in dangerous conditions for uncertain income, and the government has struggled to keep child laborers away from the sites. In front of Angelo, groups of women and men crush rocks with pickaxes before the material is transported to mainly Chinese wholesalers. At a makeshift metals depot outside Kolwezi, a hand-written sign on the wall lists the prices offered for the ore with copper grades from 1% to 20%. A neighboring rival depot — one of dozens — lists grades of up to 30%, a purity unheard of anywhere else in the world. 'Only in Congo,' one Chinese buyer says admiringly. A neighboring depot is owned by Kwanga — an adopted name for a wholesaler called Li who hails from the industrial city of Shijiazhuang, in northern China. He declines to give his full name to avoid attracting the attention of the authorities. Li sells the ore to one of the many Chinese-owned processing plants around Kolwezi with access to refiners at home. 'We weigh it, assess the quality and then offer a price,' says Li, as he paces around the depot, smoking and dictating instructions into his phone in Mandarin and Swahili. Gesturing toward a Chinese employee behind a mesh fence, he adds: 'If they don't accept the price, they go elsewhere.' Several artisanal miners point out that they have nowhere else to go to sell their cobalt and copper, other than the ubiquitous Chinese wholesalers. The illegal Shabara artisanal copper-cobalt mine near the Congolese town of Kolwezi. Workers assemble at the Shabara mine, preparing to dig on land where a Glencore subsidiary has the only official mining permit. The commodity trader has previously tried to stop the artisanal mining at the site. A Shabara miner holds a lump of raw copper and cobalt. More than 200,000 artisanal cobalt miners work in Congo, often in dangerous conditions for uncertain pay. Miners pack bags of ore in the Shabara mine which will later be broken up before being sold to wholesalers, likely in Kolwezi. Miners queue at a sales counter while staff negotiate a price for the ore they have brought in. The artisanal sector accounts for an estimated 2% of production. How CMOC Left Glencore Flatfooted No company has done more to supercharge the creation of the industrial side of this ecosystem than CMOC, which now dominates global cobalt production. It began life in 1969 as a state-owned producer of molybdenum, a steelmaking ingredient, in the central province of Henan. A steady expansion in the 2000s led to a listing on the Hong Kong Stock Exchange in 2007 which valued the company at around $1 billion. After buying mining assets in Australia and Brazil, it was investments in Congo that announced it as a global deal-maker. In 2016 it took over the Tenke Fungurume mine near Kolwezi in a deal with the American miner Freeport-McMoRan Inc. and Canada's Lundin Mining Corp. that totaled $3.8 billion. In 2020 it paid Freeport another $550 million for the Kisanfu license and last year became a top-10 copper producer. In an industry where turning promising geology into an actual mine can take decades, CMOC's progress in building Kisanfu shocked rivals. The facility — now the biggest cobalt mine in the world — was brought into production in little more than two years. The speed left competitors flatfooted. The deluge of cobalt worsened a slump in prices which fell by around 75% from a May 2022 peak, falling below $10 a pound in February. The financial hit for Congo was significant: mining royalties from cobalt hydroxide fell more than 40% to $409 million in 2023, according to Resource Matters, a research and advocacy group, even as production grew by almost one fifth. However, the lower prices were good news for Chinese battery makers. Contemporary Amperex Technology Co. Ltd., or CATL — the world's largest manufacturer of EV batteries — owns around a quarter of CMOC's shares and a separate 25% stake in the Kisanfu mine. Jose Fernandez, US under secretary for economic growth, energy, and the environment under Biden, accused CMOC last year of using 'predatory' tactics to depress cobalt prices and discourage Western companies from developing a rival supply-chain for the metal. Source of Cobalt Demand Glencore — which had been the top cobalt producer for at least 15 years — saw its power to dictate prices evaporate. The Swiss commodity trader cut output at one of its Congolese mines as the market weakened in an attempt to support prices. But the effort was futile. CMOC last year produced three times more cobalt in Congo than Glencore. Chinese miners were also left reeling: some slashed exports while state-backed MMG Ltd. mothballed a new cobalt plant in December. CMOC — which turned down a request for access to its Kisanfu mine for this story — denies deliberately crashing the price. It describes the glut as an unavoidable consequence of its push to produce more copper. "We develop the mine assets in the DRC for copper,' CMOC said in an emailed response to questions. 'Cobalt is only a byproduct.' The export ban is scheduled to be lifted in late June, although Tshisekedi has warned that it could be extended. Bloomberg Intelligence estimates that the suspension — if it is extended to the end of 2025 — could cost Congo as much as $400 million. More permanent options to exert greater control over prices, including export quotas, are being discussed. Around Kolwezi, miners continue to ship copper while storing cobalt on site. Congolese politicians — happy that the hydroxide price has doubled since the ban was introduced — know flooding the market the moment it's lifted would take them back to square one. While Congo says it simply wishes to restore balance between supply and demand, analysts have warned that overly stringent controls could hasten a shift by EV battery makers towards cobalt-free alternatives. Andre Wameso, Tshisekedi's powerful deputy chief of staff for economic affairs, told a cobalt industry conference in Singapore last week that the ban is part a 'broader strategy.' 'Congo is considered a land where one comes to source raw materials to build other economies,' the president's adviser said as he referenced the role played by the country's resources from rubber to diamonds in earlier periods of global change, which have not translated into prosperity for its people. 'We understand that a new revolution is coming. You've talked about it. It's the energy transition, the green revolution, and once again the raw materials that will serve this industrial revolution are in Congo.' 'We are thinking about how to implement the right policies,' he went on, 'so that not only can the mining industry develop and obviously recover capital, but also this time benefit the Congolese people.' Assist: Annie Lee, Jing Li Editor: Tom O'Sullivan Photo editor and production: Jody Megson More On Bloomberg Terms of Service Do Not Sell or Share My Personal Information Trademarks Privacy Policy Careers Made in NYC Advertise Ad Choices Help ©2025 Bloomberg L.P. All Rights Reserved.
