Ivanhoe Mines Announces Africa's Largest and Greenest Copper Smelter Has Commenced Heat-Up

On December 1, 2025, Ivanhoe Mines announced that Africa's largest and greenest direct-to-blister copper smelter at the Kamoa-Kakula Copper Complex has commenced heat-up. The process began on November 21, 2025, with the furnace temperature reaching 800°C. The first feed of copper concentrate into the smelter is expected by the end of 2025. The company also announced it will issue copper production guidance for 2026 and 2027 on December 2, 2025. The smelter is designed to have a capacity of 500,000 tonnes per annum and is supported by a 60 MW uninterruptible power supply (UPS) and 180 MW of back-up generator capacity.

This announcement is a significant operational milestone and a material positive catalyst for Ivanhoe Mines. The commencement of the smelter heat-up confirms the project is on schedule, de-risking a critical component of the Kamoa-Kakula complex's vertical integration strategy.

A chronological review of news from the past year provides essential context: - Early 2025: The company began the year with strong momentum, issuing robust 2025 guidance, securing a $750 million senior notes offering, and advancing construction at all key projects. The smelter was on track for a mid-year start-up. - May 2025: A major operational crisis occurred when seismic activity at the Kakula mine forced a suspension of underground operations, leading to flooding of the eastern side of the mine. This was a significant negative event, causing the company to withdraw its 2025 guidance and creating substantial uncertainty. The stock price fell from over $14 to below $9 in response. - Mid-2025: Management demonstrated effective crisis management by implementing a detailed three-stage dewatering plan. By June, mining on the less-affected western side of Kakula had resumed, and the company issued revised, lower 2025 production guidance of 370,000-420,000 tonnes of copper. - Late 2025: The company's execution of its recovery plan began to restore investor confidence. - In September, the Qatar Investment Authority (QIA) made a C$500 million strategic investment at C$12.00 per share, a major vote of confidence from a sovereign wealth fund. - The Q3 results (Oct 29) reflected the operational disruption, with lower production and higher cash costs ($2.62/lb for the quarter). However, the company maintained its revised guidance, and management commentary in the associated transcript indicated Q3 was the "bottom" of the turnaround. - On November 19, the company announced another major milestone: the official opening and first concentrate production at the Platreef Mine in South Africa. - On November 25, Ivanhoe announced the completion of the ramp-up of Turbine #5 at the Inga II hydropower dam, securing 50 MW of additional clean power for Kamoa-Kakula.

The most recent news of the smelter heat-up is the culmination of this positive momentum. It aligns with the timeline provided in the October 7 and Q3 earnings updates, which projected smelter heat-up in November and first feed in December. Achieving this milestone confirms excellent project execution by the team, even while managing the Kakula dewatering crisis.

The smelter's commissioning will have a direct positive financial impact by: 1. Reducing Logistics Costs: Shipping 99.7% pure copper anodes is significantly cheaper than transporting bulky concentrate. Logistics currently account for approximately 30% of C1 cash costs. 2. Creating a By-product Credit: The smelter will produce up to 700,000 tonnes of sulphuric acid annually, a high-demand commodity in the DRC Copperbelt. The Q3 transcript noted expected acid prices around $500/tonne, which would create a substantial new revenue stream and reduce net production costs. 3. Monetizing Stockpiles: The company ended Q3 with 59,000 tonnes of unsold copper in concentrate. The smelter will now process this inventory, converting it to cash flow and reducing working capital. 4. Improving Power Reliability: The associated 60 MW UPS and backup generators enhance power stability for this critical asset, mitigating the risk of grid instability in the DRC.

Furthermore, the commitment to release 2026 and 2027 production guidance the following day is highly positive. It signals that management has sufficient confidence in the Kakula dewatering progress and the new mine plan to provide a credible long-term outlook, which the market has been eagerly awaiting since the May incident.

Ivanhoe Mines is a Canadian mining company focused on advancing its three principal projects in Southern Africa. - Kamoa-Kakula Copper Complex (DRC): This is the company's flagship asset and one of the world's largest and highest-grade copper mines. After a major operational disruption in May 2025 due to a seismic event, the mine is recovering and is now being supplemented with its own on-site smelter. - Platreef Project (South Africa): A tier-one discovery of platinum-group metals, nickel, copper, and gold. The project achieved first concentrate production in November 2025 and is being developed in phases, with a massive long-term expansion plan. - Kipushi Project (DRC): An ultra-high-grade, producing zinc mine that is currently ramping up and undergoing debottlenecking to increase throughput.

The company also holds extensive exploration licenses in the Western Forelands (DRC), Angola, Zambia, and Kazakhstan, representing significant future growth potential.