Ivanhoe Mines (TSX: IVN) (OTCMKTS: IVPAF) and the Ministry of Mines and Minerals Development for the Government of Zambia have come to terms on exploration activities in the country.
This came about in the form of a memorandum of understanding (MOU) signed late last month, and announced only on Tuesday. The agreement is the mutual support of long-term sustainable development of Zambia’s natural resources in exchange for a contribution to the Zambian economy and its communities.
Ivanhoe also applied for an exploration licence package in the country, with adjudication and award expected to come by the end of 2024.
The Ministry of Mines also committed to sharing information, identifying prospective land packages, and providing access to existing and new geological data collected by the Zambian Government. Furthermore, this includes includes the recently announced 750,000 square kilometer country-wide airborne geophysical survey. Additionally, the ministry will offer guidance and support for new licence applications, and ensuring a stable and predictable fiscal and regulatory environment.
After securing successful exploration or mining licences, Ivanhoe Mines plans to invest in exploration and project development activities, following the same successful model that led to the discovery and development of the world-class Kamoa-Kakula Copper Complex in the Democratic Republic of the Congo.
Ivanhoe will comply with all applicable laws and collaborate with the Geological Survey of Zambia to co-develop viable projects in a joint venture with the Government of Zambia.
Projected global copper mine production by country in 2024 (‘000 tonnes of copper). Image via BMO.
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Geologists uncovered over 50m tonnes of copper over two decades
In mid-August, President Hakainde Hichilema of Zambia announced the launch of a nationwide high-resolution aerial geophysical survey to map the country’s mineral and water resources. The program supports Zambia’s goal of quadrupling annual copper production to reach 3 million tonnes by 2031, positioning the country as the world’s second-largest copper producer.
“Zambia is open for business and committed to maintaining an environment that attracts and retains investment by demonstrating our readiness to work with industry leaders like Ivanhoe Mines to realize the full potential of our natural resources,” said Ivanhoe co-chair Robert Friedland.
Friedland shared that Ivanhoe Mines is only beginning to expand its global exploration efforts to discover more essential green metals needed for advanced industrialization and electrification. Additionally, over the past two decades, Ivanhoe’s geologists have uncovered more than 50 million tonnes of copper beneath the western edge of the Central African Copperbelt in the Democratic Republic of the Congo, now known as the Western Foreland shelf.
Zambia is rich in mineral resources, making it one of Africa’s leading mining nations. The country is best known for its vast copper reserves, which have been a cornerstone of its economy for decades. Furthermore, copper mining accounts for the bulk of Zambia’s exports and is concentrated in the Copperbelt region, where large-scale operations produce millions of tonnes annually.
Some of the world’s major copper producers, including Glencore PLC (LON: GLEN), First Quantum Minerals (TSE: FM) (OTCMKTS: FQVLF), and China’s Nonferrous Metal Mining Group, operate in Zambia, helping to make the country one of the top global copper suppliers.
In addition to copper, Zambia also has significant cobalt reserves. Cobalt is often found as a byproduct of copper mining, particularly in the Copperbelt, and is an essential component in rechargeable batteries and other technologies vital for green energy transitions.
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