Kamoa Holding Limited, a joint venture holding company for the Kamoa-Kakula Copper Project in the Democratic Republic of the Congo (DRC), has secured an equipment financing facility of approximately $211 million, as well as a down payment facility of nine million dollars.
In addition, Gold Mountains International Mining Company, a subsidiary of Zijin Mining Group, provided Kamoa Holding with a $200-million limited recourse line of credit secured by the project’s pre-production ore inventories to fund the Phase 2 concentrator expansion.
According to operating company Ivanhoe Mines, the amount is sufficient to cover the cost of the second 3.8-million tons per year (Mtpa) concentrator module at the Kakula mine – effectively doubling the mine’s processing capacity from 3.8 Mtpa to 7.6 Mtpa.
“Kamoa-Kakula remains firmly on track to begin Phase 1 copper production in July 2021, and these two non-dilutive, project-level credit facilities allow us to raise funds as needed to run the concentration plant in Phase 2 of the expansion project ahead of our initial schedule,” said Robert Friedland, Co-Chairman of Ivanhoe Mines, in an announcement.
The Kamoa-Kakula Copper Project is a joint venture between Ivanhoe Mines (39.6%), Zijin Mining Group (39.6%), Crystal River Global Limited (0.8%) and the Government of the DRC (20%).