IVANHOE Mines shares surged on Monday after the Canadian mining company announced progress towards reopening sections of its major copper operation in the Democratic Republic of Congo – though it stopped short of providing a firm restart timeline.
The stock climbed as much as 8.7% in Toronto trading after Ivanhoe confirmed management was collaborating with engineers “to safely and conservatively restart mining operations.” By early afternoon, shares remained 5.2% higher, outpacing sector peers.
The Kamoa-Kakula complex, recognised as one of the world’s most significant copper mines, has been closely watched by investors and global metal markets since seismic activity triggered extensive underground flooding a fortnight ago. The incident adds to a series of supply-side disruptions tightening global copper availability, according to Bloomberg News.
Underground mining operations are expected to resume later this month on the western side of the complex, Ivanhoe stated. Comprehensive reopening plans, including for the eastern section of the Kakula mine, will be outlined next week.
The company’s Chinese partners, Zijin Mining Group and CITIC Metal, are assisting in securing high-capacity pumps to remove floodwater. Installation of pumping equipment as part of a long-term solution is anticipated within 90 days, said Bloomberg News.
Concentrators near Kakula continue operating at approximately 50% capacity, processing stockpiled ore, whilst the Kamoa underground mine and its adjacent processing facility maintain normal operations.
Citigroup analysts note the flooded mine represents at least 70% of the complex’s current production, potentially keeping Kakula underground operations shut until the fourth quarter.
