IVANHOE Mines experienced its worst trading day in over a decade after it withdrew production guidance at its Congo copper mine Kamoa-Kakula, said Bloomberg News.
Ivanhoe Mines said on Monday that ongoing seismic disturbances had forced the suspension of certain underground activities at the facility.
It was consequently reassessing its annual copper production estimates of 520,000 to 580,000 tons from the mine and has postponed its timeline for bringing a new smelting facility online.
Trading in Toronto saw Ivanhoe’s stock price plummet by 16%, marking the company’s worst single-day performance since April 2013.
The mining operation represents a partnership between Ivanhoe and Chinese firm Zijin Mining Group Company, and has rapidly emerged as a major global copper supplier. The Congolese government and Crystal River Global maintain ownership interests in the venture as well.
Underground activities at the Kakula section were suspended on Sunday following continued seismic events that had already caused a work stoppage the previous week. Management is working to increase water pumping capabilities to manage rising groundwater levels in the mine, said Bloomberg News.
According to company officials, early indicators suggest the seismic disturbances “may persist for several weeks, potentially restricting mine access and extending the operational halt at Kakula.”
While Kakula operations remain suspended, the Kamoa section continues normal production, and Kakula’s processing facilities are working through existing surface ore stockpiles, said Bloomberg News, citing the company.
