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Mail & Guardian
2 days ago
- Business
- Mail & Guardian
US Congress should ask questions about the Ivanhoe Atlantic Deal
Iron ore mine in West Africa. The Liberty Corridor railroad provides a mechanism for Ivanhoe Atlantic to get that ore to market on favourable terms. Photo: File On the eve of the Those questions will not only force consideration of favouritism in US commercial diplomacy. They will demand evaluations of the conduct of US ambassadors, a senior adviser to the US president and a reported candidate for US assistant secretary of state for African affairs. There are concerns that the US government has endorsed a commercial project that will benefit Chinese and South African individuals and entities who undermine US national security and foreign policy interests according to the America First Foreign Policy Agenda endorsed by the Trump administration. What is the Liberty Corridor? The Liberty Corridor is a heavy duty railroad that will connect the Nimba District of Guinea with a new deepwater port in Didia, Liberia. The corridor will be developed on top of the existing Yekepa-Buchanan Railway Corridor. Its development will promote regional economic integration in West Africa and allow Ivanhoe Atlantic to export iron ore from its Kon Kweni Iron Ore Project through Liberia. The Liberty Corridor is opposed by a Luxembourg-based multinational steel and mining company ArcelorMittal (AML). Back in 2005, AML entered into a Mineral Development Agreement with the Guinea government. One of the provisions of that agreement granted AML a monopoly over the Yekepa-Buchanan Railway. Since then, AML has invested a The Liberty Corridor has been championed by The Liberty Corridor could prove to be a game-changer for Ivanhoe Atlantic and the US mining sector. There are other undeveloped mineral deposits in the Southern Guinean Highlands. One is the Simandou Iron Ore Mine. It is estimated to have The Liberty Corridor is seen as a valuable alternative to the Trans-Guinean Corridor for the Kon Kweni Iron Ore Project. Industry experts suggest that Ivanhoe Atlantic would have struggled to ever realise the full potential of the Nimba Iron Ore Mine if mining financier Robert Friedland had chosen to stand and fight with Rio Tinto, Winning Consortium Simandou and the government of Guinea for fair and open access to the Trans-Guinean Corridor. Ivanhoe Atlantic simply did not have enough leverage to achieve a desired outcome. The Liberty Corridor has been publicly endorsed by the US government. The US embassy in Monrovia publicly declared that the US government What are the Issues for the US Congress? The Liberty Corridor raises a number of issues that the US Congress may want to consider. Two of the most important involve the appearance of favouritism and insufficient due diligence in US commercial diplomacy. With respect to favouritism, private claims have been made that the letter of intent was signed between the Guma Africa Group and the Liberian government only on the eve of the White House visit through coercive actions undertaken by the US government behind the scenes. According to people with knowledge of the negotiations, that diplomatic intervention was spearheaded by the US ambassador to Liberia, Mark Toner, with the support of senior Africa bureau official Troy Fitrell and senior Africa adviser to the US president, Massad Boulos. Those unattributable remarks demand critical scrutiny from the US Congress. If true, then US commercial advocacy not only favoured one company Ivanhoe Atlantic) over at least one another (AML). It favoured a company whose With respect to insufficient due diligence, private claims have been made that the US government failed to take reasonable steps to ensure that the Liberty Corridor fully aligned with US national security and foreign policy interests prior to endorsing the deal. Those allegations revolve around the claim that the project will benefit Chinese and South African individuals and entities who apparently undermine US national security and foreign policy interests as set forth in the America First Foreign Policy Agenda embraced by the Trump administration: People's Republic of China: Through Ivanhoe Capital, there is an indirect South Africa: Through Guma Africa Group, there is a direct association between Ivanhoe Atlantic and South African Robert Gumede, who has reportedly been accused of major corruption. Among other things, the South African Special Investigating Unit recently sought to recoup more than The Liberty Corridor therefore begs important questions for the American people: With respect to favouritism, one has to wonder whether the US government actually coerced the government of Liberia into signing the letter of intent with Ivanhoe Atlantic? Did Boulos, Fitrell, and Toner have any conflicts of interest that may have improperly influenced US commercial diplomacy (for example, business connections; post-retirement employment interests)? Did ambassador Pham ever make improper use of government connections and private information that was gained during his time in office for personal gain in the private sector? With respect to insufficient due diligence, one has to wonder whether the Liberty Corridor is well aligned with the strategic goals of countering major corruption, mitigating the At present, the American people do not know the answers to any of those questions. That makes it difficult to make sense of the private claims and counter-claims about the deal that are swirling around Washington. The US Congress could put an end to all of this political theatre by simply holding a public hearing on the matter and setting the record straight once and for all. Of course, that raises a knock-on question: how should the White House respond if a congressional hearing was called on the matter? Assuming everything was above board with the negotiations, the White House might want to consider welcoming such oversight by the US Congress. A public hearing would not only provide the Trump administration with a platform to put to bed nasty insinuations about Boulos, Fitrell, Pham and Toner, such as those made in the recent Africa is Not a Country . It would provide the Trump administration with a platform to make the case to the American people that their approach to US commercial diplomacy is far superior to those of the Biden administration. That includes their approach to putting an end to the global stranglehold that companies linked to the Chinese Community Party have on access to critical minerals. Michael Walsh is a non-resident senior fellow at the Foreign Policy Research Institute.
AU Financial Review
10-07-2025
- Business
- AU Financial Review
Trump's ‘intelligent' copper tariffs will ‘wake people up', says mining billionaire
London | Billionaire mining entrepreneur Robert Friedland welcomed US President Donald Trump's vow to impose a 50 per cent tariff on copper imports, arguing that domestic production of the metal was 'fundamental to America's national security'. Analysts and other executives have questioned the logic of imposing such a high levy when the US remained so dependent on imports of the metal, but the founder of Toronto-listed Ivanhoe Mines said the move was needed to 'wake people up' to America's vulnerability.
Yahoo
08-07-2025
- Business
- Yahoo
Ivanhoe Mines Reports 112,009 Tonnes of Copper Produced by Kamoa-Kakula in Q2 2025
Stage 1 dewatering of the Kakula Mine progressing as planned; Stage 2 dewatering on schedule to commence next month Kamoa-Kakula's Phase 1 and 2 concentrators now operating at approx. 85% of design capacity, including 45% ore feed from Kakula western side; Phase 3 concentrator operating 30% above design capacity Construction of Kamoa-Kakula's Project 95 is approximately 50% complete and on schedule for completion in Q1 2026 Kipushi concentrator milled a record 153,342 tonnes of ore in Q2 2025, producing near-record 41,788 tonnes of zinc Platreef on schedule for first production in Q4 2025 Ivanhoe Mines to issue Q2 2025 financial results after market close on July 30, host conference call for investors on July 31 Johannesburg, South Africa--(Newsfile Corp. - July 8, 2025) - Ivanhoe Mines' (TSX: IVN) (OTCQX: IVPAF) Executive Co-Chair Robert Friedland, and President and Chief Executive Officer Marna Cloete announced today the company's second quarter production results and an update on operational and project activities. During the second quarter, Kamoa-Kakula's Phase 1, 2, and 3 concentrators milled a total 3.62 million tonnes of ore, producing 112,009 tonnes of copper, representing an 11% year-on-year increase. As previously guided, "Stage One" dewatering activities have been in place and operating to plan as of June 2, 2025. Water levels on the eastern side of the Kakula Mine have decreased modestly ahead of "Stage Two" dewatering activities from next month. The five, procured high-capacity, submersible "Stage Two" dewatering pumps are currently undergoing factory assembly in China and are expected to be air-freighted to site within the coming weeks. In early June, mining on the western side of the Kakula mine restarted. By mid-June, the mining rate had ramped up to 300,000 tonnes per month (3.6 million tonnes on an annualized basis), with grades ranging from 3% to 4% copper. As a result, since mid-June, the combined processing rate of the Phase 1 and 2 concentrators ramped up to approximately 670,000 tonnes per month (8 million tonnes per annum on an annualized basis). Underground development of a new mining area, located on the far eastern side of the Kakula Mine, has recently commenced. The development of the two new access drives will be conducted from existing underground infrastructure. Founder and Co-Chairman Robert Friedland commented: "We commend the hard work and dedication of our management team, mining and engineering crews at Kamoa-Kakula, who continue to work tirelessly to turn around operations at Kakula. "Operational recovery plans are well underway at Kamoa-Kakula following the decisive and proactive actions undertaken by management in response to the seismic activity first announced on May 20. Safety of our employees and contractors remains our top priority at Kamoa-Kakula ... and we are now systematically and judiciously increasing development activities to increase the supply of high-grade, fresh ore to the Phase 1 and Phase 2 concentrators from mining areas on the western side of the Kakula ore body. We expect to return to mining areas grading approximately 5% copper on the western side of Kakula towards the end of the year, which will drive a further improvement in operating results and efficiency. "Meanwhile, we have commenced development towards a new high-grade mining area on the far eastern side of Kakula, which is expected to provide additional high-grade ore by Q2 2026. We also expect to transport excess ore from the Kamoa and Kansoko mines, which continue to outperform on all metrics, to further augment feed of fresh material to the Phase 1 and Phase 2 concentrators as soon as possible. "Dewatering efforts of the Kakula Mine are proceeding to plan, which will provide us access to assess additional high-grade ore from the affected workings that can be safely mined to feed the Phase 1 and Phase 2 concentrators. "We also commend our management team at Kipushi for a strong quarterly operating performance. Kipushi is now well on track as one of the world's largest, highest-grade, and greenest major zinc mines. Lastly, but certainly not least, we are extremely excited for first production at Platreef later this year... which will set the stage for a phased expansion that is set to position the operation as the world's largest, and lowest-cost producer of platinum-group metals, nickel, copper, and gold. Given the current rally in platinum-group metals prices and the rising interest in these metals, we firmly believe Platreef is positioned to emerge at the right moment in the cycle to deliver exceptional returns for our shareholders." The heat-up of Kamoa-Kakula's state-of-the-art, 500,000-tonne-per-annum direct-to-blister copper smelter is expected to start in September 2025, with the first production of 99.7%-pure copper anodes anticipated in October 2025. To view an enhanced version of this graphic, please visit: Summary of quarterly production data from Kamoa-KakulaQ2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Phase 1 & 2Ore tonnes milled (000's tonnes) 2,288 2,215 2,329 2,211 1,991* Feed grade of ore processed (% copper) 5.04% 4.86% 5.08% 5.01% 4.12%* Copper recovery (%) 87.0% 86.6% 87.0% 88.3% 85.4%* Copper in concentrate produced (tonnes) 99,706 94,214 102,042 97,575 71,401* Phase 3Ore tonnes milled (000's tonnes) 93 1,050 1,326 1,512 1,631 Feed grade of ore processed (% copper) 1.67% 2.64% 2.82% 2.76% 2.92% Copper recovery (%) 83.3% 79.9% 85.1% 85.1% 85.5% Copper in concentrate produced (tonnes) 1,106 22,099 31,777 35,545 40,608 Combined Phase 1, 2, and 3Ore tonnes milled (000's tonnes) 2,381 3,266 3,655 3,723 3,622 Feed grade of ore processed (% copper) 4.91% 4.14% 4.26% 4.10% 3.58% Copper recovery (%) 86.9% 85.3% 86.6% 87.4% 85.4% Copper in concentrate produced (tonnes) 100,812 116,313 133,819 133,120 112,009 Data in bold denotes a quarterly record*Phase 1 & 2 production in the second quarter was impacted by seismic activity at the Kakula Mine as announced on May 20, 2025. Phase 1 and 2 concentrators are operating at approximately 85% capacity, with approximately 45% of feed coming from the western side of the Kakula Mine During the second quarter, the Phase 1, 2, and 3 concentrators milled 3.62 million tonnes of ore, producing 112,009 tonnes of copper, representing an 11% year-on-year increase. Copper production for the first half of 2025 totaled 245,127 tonnes. In June, Kamoa-Kakula's Phase 1, 2, and 3 concentrators produced a total of 28,147 tonnes of copper. During the month, approximately 15,000 tonnes of copper were produced by the Phase 1 and 2 concentrators, at an average grade of 3.3% copper and an average recovery rate of 79%. The lower-than-average recovery rate is due to lower recoveries achieved from processing lower-grade ore from surface stockpiles. The Phase 1 and 2 concentrators commenced the processing of ore from the western side of the Kakula Mine on June 8, 2025. Since mid-June, the Phase 1 and 2 concentrators ramped up to a combined processing rate of approximately 670,000 tonnes per month, or 8 million tonnes per annum on an annualized basis. It is expected that the Phase 1 and 2 concentrators will continue to process ore at this rate for the remainder of 2025, with a target of approximately 50% of ore feed coming from surface stockpiles and 50% from the western side of the Kakula Mine. The processing of surface stockpiles is expected to continue until they are depleted in Q1 2026. As announced on June 11, 2025, mining operations on the western side of the Kakula Mine restarted on June 7, 2025. By mid-June, the mining rate had ramped up to 300,000 tonnes per month (3.6 million tonnes on an annualized basis). As previously guided, mining in the western side of the Kakula Mine will initially focus on higher-elevation areas in the north and southwest, as shown in Figure 1, where copper grades range between 3% and 4%. Mining of these areas will continue into the fourth quarter, until Stage Two dewatering of the eastern side of the Kakula Mine is well advanced. From late 2025, mining crews plan to advance deeper into the western side of the Kakula Mine, where copper grades are expected to increase to approximately 5%. The Phase 3 concentrator milled a record 1,631 tonnes of ore in the second quarter, producing a record 40,608 tonnes of copper. The milling record is equivalent to an annualized rate of 6.5 million tonnes, which is 30% higher than the Phase 3 concentrator's design capacity of 5.0 million tonnes per annum. The average quarterly feed grade for the Phase 3 concentrator was a record 2.92% copper. For the remainder of 2025, it is expected that the feed grade into the Phase 3 concentrator will average approximately 2.5% copper, as the cut-off grade is lowered to achieve a greater mining rate. Currently, all ore mined at the Kamoa and Kansoko mines is processed by the Phase 3 concentrator. During the second half of 2025, the combined mining rate from the Kamoa and Kansoko mines will increase, with up to 100,000 tonnes per month of this ore fed into the Phase 1 and 2 concentrators, replacing a portion of the stockpile feed. Stage One dewatering underway as planned; delivery of Stage Two dewatering pumps expected from next month As previously guided, "Stage One" dewatering activities have been in place and operating to plan as of June 2, 2025. This has enabled the water levels on the eastern side of the Kakula Mine to decrease modestly, ahead of "Stage Two" dewatering activities which are expected to commence in August. In the meantime, the declining water levels have enabled mining crews to access additional areas and commence selective rehabilitation. "Stage Two" dewatering involves the installation of high-capacity, submersible pumps and new permanent infrastructure to fully dewater the entire Kakula Mine from surface. Kamoa Copper has ordered five high-capacity pumps, each rated at 650 litres per second, from Hefei Hengda Jianghai Pump Co., Ltd. of Anhui Province, China. The pumps are currently undergoing factory assembly and are expected to be air freighted in August. Looking north with the Phase 1 and 2 concentrators in the background, cranes and steel piping are mobilized to one of the two existing vertical shaft sites that will be used to dewater the eastern side of the Kakula Mine. To view an enhanced version of this graphic, please visit: Concurrently, site preparation activities are advancing well. The high-capacity, submersible pumps will be installed in pairs down two adjacent shafts that access the deepest sections of the eastern side of the Kakula Mine, as shown in Figure 1. The remaining pump will be kept in reserve. The pumps will be connected to piping and lowered down the existing shafts from the surface. Discharged water from the submersible pumps will be fed into existing surface water channels that feed into on-site settling and treatment ponds. The total capital cost of the Stage One and Stage Two dewatering activities, including the purchase, transport, and installation of the high-capacity, submersible dewatering pumps, is expected to be up to $70 million, including contingency. Figure 1. An illustration of the Kakula Mine's existing underground infrastructure as of June 2025, showing the depth profile of the western and eastern sections and existing (Stage One) and new (Stage Two) vertical pumping locations. To view an enhanced version of this graphic, please visit: Development to the new mining area on the far eastern side of the Kakula Mine has commenced A new mining area, located on the far eastern side of the Kakula Mine, as indicated by the red arrows in Figure 2, will be initially accessed via two new access drives. The mining crews commenced construction of the access drives in the past week. Development of the new mining area is expected to be initially conducted in waste before entering ore from early 2026. Mining of the area is expected to commence in Q2 2026. The new access drives will be developed simultaneously, advancing east from existing underground infrastructure. The new mining area will not require new mine access from the surface. The area will be accessed from existing underground infrastructure that is not affected by the ongoing dewatering activities. Figure 2. An illustration of the Kakula Mine's existing underground infrastructure, showing the grade profile and the location of the two access drives (red arrows) to the new eastern mining area. To view an enhanced version of this graphic, please visit: Notes: Existing underground development as at June 2025. Illustration is based on the 2023 Kamoa-Kakula IDP showing the estimated average grade of each vertical stack of blocks above a 2% total copper cut-off. A minimum 6-metre thickness is applied. Smelter heat-up scheduled to start in September; first copper anode production expected in October As announced on June 11, 2025, Kamoa-Kakula's senior management confirmed that the start-up of the on-site direct-to-blister copper smelter will commence in early September 2025, with the first production of anode expected in October. The smelter can operate at a minimum operating capacity of 50%, or approximately 250,000 tonnes of copper on an annualized basis. Kamoa-Kakula's management team expects to prioritize the processing of all concentrates produced by the Phase 1, 2, and 3 concentrators through the on-site smelter, with any excess concentrate toll-treated at the nearby Lualaba Copper Smelter. As at June 30, 2025, Kamoa-Kakula's total on-site, unsold concentrate stockpiles consisted of 53,600 tonnes of copper, of which approximately 31,500 tonnes are stored on the smelter site. In preparation for the first feed of concentrate, approximately four to six weeks after start-up in early September, it is expected that total on-site, unsold concentrate stockpiles will be approximately 35,000 tonnes of copper in concentrate. First copper anode production from Kamoa-Kakula's state-of-the-art, on-site copper smelter is expected in October. To view an enhanced version of this graphic, please visit: Kamoa-Kakula's Project 95 is approximately 50% complete and on schedule for completion in Q1 2026 Kamoa-Kakula's Project 95 is advancing well at 50% complete and is on schedule for completion in Q1 2026. The "Project 95" initiative for Kamoa-Kakula's Phase 1 and 2 concentrators aims to increase the overall recovery rate to 95%, up from the design recovery rate of 87%, based on a high-grade feed of 5% copper. During the interim period, while the Kakula Mine is undergoing turnaround, a portion of the ore feed to the Phase 1 and 2 concentrators, sourced from both the Kakula and Kamoa mines, will be of lower grade. Kamoa-Kakula's engineering team aims to maintain a recovery rate from the lower-grade sources of at least 90%. Project 95 construction works are advancing well, as shown in the foreground, with the adjacent Phase 1 and 2 concentrator storage shed in the background. To view an enhanced version of this graphic, please visit: Site clearance and early earthworks for Kamoa-Kakula's 60-megawatt, on-site solar facility with battery storage have commenced During late March and early April 2025, Kamoa Copper signed power purchase agreements (PPA) with CrossBoundary Energy DRC of Nairobi, Kenya, and La Societe Green World Energie SARL of Beijing, China, to provide up to 60 megawatts (MW) in baseload clean energy to Kamoa-Kakula's operations from an on-site solar facility. The facilities, which will be owned, operated, and funded by CrossBoundary Energy and Green World Energie, will comprise a total of 406 MWp of Solar Photovoltaic (PV) capacity, with up to 1,107 MWh of battery energy storage (BESS). Kamoa Copper will be the sole off-taker of the electricity produced by both facilities. Kamoa-Kakula plans to expand the on-site solar facilities over time further, targeting a capacity of up to 120 MW. Early construction works commenced in the second quarter with geotechnical surveying of the site, site clearing, and the ordering of long-lead items, including the BESS, E-house, and mounting structures. Construction completion is expected in mid-2026. Site clearing and early earthworks are underway at Kamoa-Kakula's 60 MW on-site solar (PV) facility, which is scheduled for completion in mid-2026. To view an enhanced version of this graphic, please visit: Revised 2025 cash cost (C1) and capital expenditure guidance to be provided with Q2 2025 financial results; Kamoa-Kakula 2026 and 2027 production guidance to be provided in September As announced on June 11, 2025, Kamoa-Kakula's revised annual production guidance is 370,000 to 420,000 tonnes of copper. Ivanhoe Mines is expected to provide Kamoa-Kakula's 2026 and 2027 copper production guidance in September, 2025. In addition, Ivanhoe Mines will provide, with the company's second quarter financial results, on July 30, 2025, revised 2025 group capital expenditure and Kamoa-Kakula cash cost (C1) guidance. It is expected that Kamoa-Kakula's revised 2025 capital expenditure guidance will not exceed the upper end of the original 2025 guidance range of $1,420 to $1,670 million, as announced on January 8, 2025, on a 100% basis. Offtake agreement signed for the remaining 20% of copper anode production from Kamoa-Kakula's on-site smelter; offtake-linked advanced payment facility of $200 million also signed As previously announced on January 8, 2025, CITIC Metal Limited and Gold Mountains International Mining Company Limited, a subsidiary of Zijin Mining, signed offtake agreements with Kamoa Copper for a combined 80% of the copper anode production from the Kamoa-Kakula smelter. The CITIC Metal and Gold Mountains anode offtake agreements also included offtake-linked advance payment facilities totalling $500 million. This facility was in addition to a $300 million Phase 3 concentrate offtake-linked advanced payment facility signed with both offtakers in 2024. In June, an agreement for the remaining 20% of the smelter's anode offtake was signed over a three-year term with Trafigura Asia Trading Pte Ltd. The offtake agreement with Trafigura also included a $200 million offtake-linked advance payment facility. The facility has an interest rate of the 1-month Secured Overnight Financing Rate (SOFR) plus 3.75%. Also in June, Kamoa Copper's existing $200 million loan facility with Standard Bank has been extended for a further 12 months on favourable terms. The funding arrangements will provide balance sheet flexibility in supporting the ongoing turnaround of the Kakula Mine. Kipushi concentrator milled a record 153,342 tonnes of ore, producing a near-record 41,788 tonnes of zinc; zinc production rates expected to significantly improve in H2 2025 Summary of quarterly production data from KipushiQ2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Kipushi ConcentratorOre tonnes milled (tonnes) - 108,065 119,619 151,403 153,342 Feed grade of ore processed (% zinc) - 32.12 31.72 32.16 33.37 Zinc recovery (%) - 75.78 85.07 87.93 85.22 Zinc in concentrate produced (tonnes) - 18,946 32,490 42,736 41,788 Data in bold denotes a quarterly record Zinc production from the Kipushi concentrator continued to improve during the second quarter. Multiple production records were achieved in May, with a record 60,182 tonnes of ore processed, producing a record 18,305 tonnes of zinc. In June, only 41,107 tonnes of ore were processed due to a nine-day shutdown to integrate the first phase of the debottlenecking program, as well as the temporary feed of lower-grade ore for the three weeks ahead of the shutdown. The first phase of the debottlenecking program focused on improving the tailings pumping systems to enable the concentrator to consistently operate at its nameplate capacity. This work is now complete. The second and final phase of the debottlenecking program will upgrade certain processing equipment within the concentrator to boost the throughput by 20%, from 800,000 to 960,000 tonnes of ore per annum. This phase is on track to be complete in the third quarter, with a 7-day shutdown planned in August to integrate all remaining equipment upgrades. Concurrent with the integrations of the debottlenecking program, the June shutdown also included upgrades to the concentrator's dense media separation (DMS) circuit. As reported on October 7, 2024, excessive fine material in the ore (fines) was causing unscheduled shutdowns due to blockages in the DMS circuit. Following the completion of the upgrades, the availability of the DMS has increased from approximately 6 to 16 hours per day, resulting in a significant reduction in lost operating time. Further upgrades will take place during the planned August shutdown, after DMS availability is expected to further increase up to 22 hours per day. Based on the completion of the above initiatives, Kipushi's 2025 production guidance remains unchanged at between 180,000 and 240,000 tonnes of zinc. (L-R) Akshay Panchal, Supervisor, and Moise Kibambe, Safety Officer, from Mining Chemical Suppliers overseeing the installation of cabling, as part of the debottlenecking program, at Kipushi's main electrical substation. To view an enhanced version of this graphic, please visit: Kipushi's project engineering team continues its strong track record of safe and reliable project delivery. The debottlenecking program, which commenced in Q3 2024, continues to advance on schedule and with zero lost time injuries (LTI) reported. Therefore, since September 2022, when construction of the Kipushi concentrator commenced, up until today, the project engineering team has not recorded a single LTI, an incredibly rare industry feat. First production from the Platreef project's Phase 1 concentrator is tracking on schedule for first production in the fourth quarter. As announced on May 8, 2025, underground development of the Flatreef orebody on the 850-metre level commenced on April 30, 2025. Since then, a total of 43 metres of reef development in ore has been completed. From now on, the rate of reef development is expected to increase to 80 metres per month. Reef development at the 750-metre level is scheduled to commence in October 2025. Development ore is being hoisted to the surface and stored in stockpiles. The Ivanplats team aims to accumulate a stockpile of approximately 60,000 tonnes of development ore ahead of the first feed into the Phase 1 concentrator. First production from the Platreef Phase 1 concentrator remains on track to take place in the fourth quarter. The concentrator will be fed primarily by development ore during the initial stages of ramp-up. Stoping (production mining) is expected to commence in Q1 2026, following the completion of Shaft #3. The proportion of ore from stoping will gradually increase, compared with development ore, as the ramp-up advances. The underground delineation drilling program, which commenced last year, is progressing well. The first ore block on the 850-metre level, where the initial stoping will take place, has been drilled, and the assays reconcile well with Ivanplats' grade models. Equipping of Shaft #3 continues to progress well and is on schedule to be 'ready to hoist' ore in Q1 2026. The shaft's 5.1-metre-diameter barrel support is complete from surface to shaft bottom at 950 metres depth, and the excavation for the shaft loading box has also been completed. The head gear assembly and rock winder installation are advancing well, with the rock winder mechanical installation is nearing completion. Aerial view of the surface infrastructure of the Platreef site at dusk, showing shaft locations, the phase 1 concentrator, the dry stack tailings facility, as well as the reef development ore stockpiles. To view an enhanced version of this graphic, please visit: Shaft #3 head gear assembly and rock winder installation are advancing well, with the mechanical installation of the rock winder (pictured below) nearing completion. To view an enhanced version of this graphic, please visit: Excavation and civil work for the underground rock-breaker and grizzly system on the Platreef Mine's 950-metre level. The rock-breaker will resize blasted ore before it is hoisted up Shaft #3. Shaft #3 is expected to be ready to hoist in Q1 2026. To view an enhanced version of this graphic, please visit: Ivanhoe Mines to issue Q2 2025 financial results after market close on July 30, and host conference call for investors on July 31, 2025 Ivanhoe Mines will report its Q2 2025 financial results and a detailed update on its operations after market close on Wednesday, July 30, 2025. The company plans to hold an investor conference call to discuss the second quarter financial results the following day on Thursday, July 31, 2025. Details of the call will be shared closer to the date. An audio webcast recording of the conference call, together with supporting presentation slides, will be available on Ivanhoe Mines' website at After issuance, the Financial Statements and Management's Discussion and Analysis will be available at and Qualified Persons Disclosures of a scientific or technical nature at the Kamoa-Kakula Copper Complex, the Platreef Project and the Kipushi Project, other than stockpiles, in this news release, have been reviewed and approved by Steve Amos, who is considered, by virtue of his education, experience, and professional association, a Qualified Person under the terms of NI 43-101. Mr. Amos is not considered independent under NI 43-101 as he is Ivanhoe Mines' Executive Vice President, Projects. Mr. Amos has verified such technical data disclosed in this news release. Disclosures of a scientific or technical nature regarding the stockpiles in this news release have been reviewed and approved by Joshua Chitambala, who is considered, by virtue of his education, experience, and professional association, a Qualified Person under the terms of NI 43-101. Mr. Chitambala is not considered independent under NI 43-101 as he is the Resource Manager for Ivanhoe Mines. Mr. Chitambala has verified the technical data regarding the surface stockpiles disclosed in this news release. Ivanhoe has prepared an independent, NI 43-101-compliant technical report for the Kamoa-Kakula Copper Complex, the Platreef Project, and the Kipushi Mine, each of which is available on the company's website and under the company's SEDAR+ profile at Kamoa-Kakula Integrated Development Plan 2023 Technical Report dated March 6, 2023, prepared by OreWin Pty Ltd., China Nerin Engineering Co. Ltd., DRA Global, Epoch Resources, Golder Associates Africa, Metso Outotec Oyj, Paterson and Cooke, SRK Consulting Ltd., and The MSA Group. The Kipushi 2022 Feasibility Study, dated February 14, 2022, prepared by OreWin Pty Ltd., MSA Group (Pty) Ltd., SRK Consulting (South Africa) (Pty) Ltd, and METC Engineering. The Platreef Integrated Development Plan 2025, dated March 31, 2025, prepared by OreWin Pty Ltd., Mine Technical Services, SRK Consulting Inc., DRA Projects (Pty) Ltd, and Golder Associates Africa. The technical reports include relevant information regarding the assumptions, parameters, and methods of the mineral resource estimates on the Kamoa-Kakula Copper Complex, the Kipushi Mine and the Platreef Project cited in this news release, as well as information regarding data verification, exploration procedures and other matters relevant to the scientific and technical disclosure contained in this news release. About Ivanhoe Mines Ivanhoe Mines is a Canadian mining company focused on advancing its three principal projects in Southern Africa: the expansion of the Kamoa-Kakula Copper Complex in the DRC, the ramp-up of the ultra-high-grade Kipushi zinc-copper-germanium-silver mine, also in the DRC; and the phased development of the tier-one Platreef palladium-nickel-platinum-rhodium-copper-gold project in South Africa. Ivanhoe Mines is also exploring its highly prospective, 54-100% owned exploration licences in the Western Forelands, covering an area over five times larger than the adjacent Kamoa-Kakula Copper Complex. Ivanhoe is exploring for new sedimentary copper discoveries, as well as expanding and further defining its high-grade Makoko, Kiala, and Kitoko copper discoveries as the company's next major development projects. Follow Robert Friedland (@robert_ivanhoe) and Ivanhoe Mines (@IvanhoeMines_) on X. Information contact Investors Vancouver: Matthew Keevil +1.604.558.1034 London: Tommy Horton +44 7866 913 207 Media Tanya Todd +1.604.331.9834 Forward-looking statements Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the company, its projects, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified using words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events, or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect the company's current expectations regarding future events, performance, and results and speak only as of the date of this release. Such statements include, without limitation: (i) statements that Stage 2 dewatering at Kakula Mine are on schedule to commence in August 2025; (ii) statements that Project 95 at Kamoa-Kakula is on schedule for completion in Q1 2026; (iii) statements that Platreef is on schedule for first production in Q4 2025; (iv) statements that the development of the two new access drives will be conducted from existing underground infrastructure; (v) statements that the development of a new high-grade mining area on the easter side of Kakula is expected to provide additional high-grade ore by Q2 2026; (vi) statements regarding the expectation that excess ore from the Kamoa and Kansoko mines, which continue to outperform on all metrics, will be transported to further augment feed of fresh material to the Phase 1 and Phase 2 concentrators as soon as possible; (vii) statements that heat-up of Kamoa-Kakula's state-of-the-art, 500,000-tonne-per-annum direct-to-blister copper smelter is expected to start in September 2025, with the first production of 99.7% pure copper anodes anticipated in October 2025; (viii) statements that it is expected that the Phase 1 and 2 concentrators will continue to process ore at this rate for the remainder of 2025, with approximately 50% of ore feed coming from surface stockpiles and 50% from the western side of the Kakula Mine and that the processing of surface stockpiles is expected to continue until they are depleted in Q1 2026; (ix) statements regarding the expectation that for the remainder of 2025 the feed grade into the Phase 3 concentrator will average approximately 2.5% copper, as the cut-off grade is lowered to achieve greater mining rate; (x) statements that during the second half of 2025, the combined mining rate from the Kamoa and Kansoko mines will increase, with up to 100,000 tonnes per month of ore fed into the Phase 1 and 2 concentrators, replacing a portion of the stockpile feed; (xi) statements that copper grades on the western side of the Kakula mine, which mining crews plan to advance from late 2025, are expected to increase to approximately 5%; (xii) statements that total cost to purchase, transport and install the "Stage Two" high-capacity, submersible dewatering pumps is expected to be approximately $50 million; (xiii) statements that development to the new mining area at Kakula is expected to be initially conducted in waste before entering ore from early 2026, with mining of the area expected to commence in Q2 2026; (xiv) statements that the onsite solar facilities, which will be owned, operated, and funded by CrossBoundary Energy and Green World Energie, will comprise a total of 406 MWp of Solar PV capacity, with up to 1,107 MWh of BESS and that Kamoa Copper will be the sole off-taker of the electricity produced by both facilities; (xv) statements that Kamoa-Kakula is targeting on-site solar facility capacity of up to 120MW, with construction expected to be completed in mid-2026; (xvi) statements that Kamoa-Kakula's revised 2025 capital expenditure guidance will not exceed the upper end of the original 2025 guidance range of $1,420 to $1,670 million, as announced on January 8, 2025, on a 100% basis; (xv) statements that the second and final phase of the debottlenecking program will upgrade certain processing equipment within the concentrator to boost the throughput by 20%, from 800,000 to 960,000 tonnes of ore per annum, and that this phase is on track to be complete in the third quarter 2025; and (xvi) statements that stoping (production mining) is expected to commence in Q1 2026, following the completion of Shaft #3. Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indicators of whether such results will be achieved. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to: (i) uncertainty around the rate of water ingress into underground workings at Kakula; (ii) the ability, and speed with which, additional equipment can be secured for Stage Two of the Kakula dewatering; (iii) the continuation of seismic activity at Kakula; (iv) the state of underground infrastructure at Kakula; (v) uncertainty around when future underground access can be secured at Kakula; (vi) the fact that future mine stability at Kakula cannot be guaranteed; (vii) the fact that future mining methods may differ and impact on Kakula operations; and (viii) the ultimate conclusion of the assessment of the cause of the seismic activity at Kakula and the impact of same on the mining plan at the Kamoa Kakula Copper Complex. Additional factors also include those discussed above and under the "Risk Factors" section in the company's MD&A for the three months ended March 31, 2025, and its current annual information form, and elsewhere in this news release, as well as unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; changes in the rate of water ingress into underground workings; the continuation of seismic activity; the state of underground infrastructure; delays in securing underground access; changes to the mining methods required in the future; the failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations. Although the forward-looking statements contained in this news release are based upon what management of the company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release. The company's actual results could differ materially from those anticipated in these forward-looking statements as a result of the factors outlined in the "Risk Factors" section in the company's MD&A for the three months ended March 31, 2025, and its current annual information form. 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23-06-2025
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Ivanhoe Electric's Preliminary Feasibility Study for the Santa Cruz Copper Project in Arizona Defines a High-Quality Underground Mining Operation with Strong Economics
Advanced United States Copper Project on Private Land with an After-Tax Net Present Value8% of $1.9 Billion and a 24.0% Internal Rate of Return at Current COMEX Copper Price Updated Reserves and Mine Plan Support 100% Heap Leach Process Producing 1.4 Million Tonnes of Copper Cathode Over 23 Year Mine Life Low Initial Capital of $1.24 Billion and First Quartile Unit Cash Costs of $1.32 Per Pound of Copper Highly Engineered Study Will Be Used to Secure Project Financing Initial Construction Targeted for First Half 2026, with First Copper Cathode Production Projected in 2028 Significant Copper Resources Support Future Expansion Potential on Existing Land Package Phoenix, Arizona--(Newsfile Corp. - June 23, 2025) - Ivanhoe Electric Inc. (NYSE American: IE) (TSX: IE) ("Ivanhoe Electric") Executive Chairman Robert Friedland and President and Chief Executive Officer Taylor Melvin are pleased to announce the completion of the Preliminary Feasibility Study (the "Study") for the Company's Santa Cruz Copper Project in Arizona. Located in the heart of Arizona, a state known for its prolific mining history and its booming technology industry, the Santa Cruz Copper Project is poised to become one of the nation's next major domestic producers of refined copper. The highly engineered Study confirms the strong economics of a high-quality, high-grade underground copper mining operation and heap leach processing facility supported by modern technologies. The NI 43-101 Technical Report co-filed in Canada will include the Study as a Feasibility Study as defined by the Canadian Institute of Mining, Metallurgy and Petroleum. The Preliminary Feasibility Study, as prepared under United States regulatory requirements, provides the requisite engineering studies needed to pursue long-term project financing. Project financing efforts are already underway. Ivanhoe Electric is pursuing multiple avenues of funding, including support from United States government agencies, commercial lending institutions, and potential strategic partners at the asset level. On April 15, 2025, Ivanhoe Electric received a Letter of Interest from the Export-Import Bank of the United States outlining the potential to provide up to $825 million in debt financing with a 15-year repayment tenor under the Make More in America initiative (refer to Ivanhoe Electric's April 15, 2025 news release). Mr. Friedland commented: "Given global conflicts that concern us all, the United States is now awake to the urgent national security imperative to restore domestic American mineral production to the scale of the American economy. Our government, industry, and defense establishment clearly recognize the paramount importance of having a secure, domestic supply of all critical minerals in the 21st century, including copper. The skillsets and government support required to mine copper, the king of metals, are the same skillsets required to mine any and all elements on the periodic table. Our Santa Cruz Copper Project is at the leading edge of this resurgence - as one of the first new copper mines that will be opened in the United States in a generation…right in the heart of Arizona - "the Copper State", with its burgeoning automotive, defense, and technology industries…including the likes of Lucid Motors and Taiwan Semiconductor Manufacturing Company. A simple Google search will show anyone there are over 1,250 aerospace and defense-related companies in the state of Arizona alone. Santa Cruz will mine the largest high-grade copper oxide orebody in America…which will be processed onsite by a new generation of skilled and highly paid American workers. Santa Cruz will produce an LME Grade A 99.99% pure copper cathode product that will be ready for immediate sale to American industry from our mine gate. Our project will not process concentrate in antiquated, expensive and polluting smelters or ship copper concentrate back and forth across international borders for downstream processing. We will produce pure American copper mined and processed in America, and directly shipped from Arizona for use in American homes, factories and our national defense industry. Santa Cruz is the right project, in the right place, at the right time. Our progress to date could not have been achieved without the support of our long-term supportive investors, such as Saudi Arabia's Maaden and BHP, the world's largest mining company, and several of the world's top institutional investors who understand the urgent need for domestic copper production. This is what the American mineral industry and resurgence must look like - clean, secure, strategic, and ready to support American national security." Mr. Melvin commented: "I am proud of the extraordinary work by our Santa Cruz Project team to complete our Preliminary Feasibility Study on time and on budget. We have assembled a dedicated team of talented mine engineers and underground specialists who have been critical in getting us to this point. Working together with our expert industry consultants, our team's tireless efforts have resulted in a highly engineered underground mine plan and a simplified heap-leach process design with low initial capital, low unit operating costs, and high copper recoveries. Our advanced Santa Cruz Project will provide high-paying jobs in Arizona and be a significant long-term U.S. producer of copper cathode to help meet domestic demand. We are fortunate to have such a high-quality copper asset on private land with excellent infrastructure in Arizona, a state with a rich mining history and a bright mining future." Highlights of the Preliminary Feasibility Study High-grade Mineral Reserves Probable Mineral Reserves of 136 million tonnes at a grade of 1.08% copper totaling 1.5 million tonnes of contained copper supports a 23-year mine life Large, Modern Underground Mining Operation with Simple Process Flowsheet 20,000 tonnes per day mining operation utilizing modern mining technology Conventional on/off heap leaching lowers operating costs and initial surface capital while yielding high copper recoveries of 92.2% over the life of mine and allowing spent ore to be utilized underground as paste backfill Average annual production of 72,000 tonnes of copper cathode during the first 15 years of mining Low Project Capital Intensity and Unit Operating Costs Underpin Strong Economic Results Initial project capital of $1.24 billion and a capital intensity of approximately $17,000 per tonne of copper1 Global first quartile2 C1 cash costs of $1.32 per pound of copper over the life of mine, and lowest cost in America At the current COMEX copper price of $4.83 per pound, the after-tax net present value at an 8% discount rate is $1.9 billion with an internal rate of return of 24% At a base case of $4.25 per pound of copper, the after-tax net present value at an 8% discount rate is $1.4 billion with an internal rate of return of 20% Clear Path to Development This is the final technical study to support ongoing project financing discussions Private land and mineral rights enable streamlined permitting process Indicative development plan targets initial construction in first half of 2026 and first copper cathode production in 2028 High copper grades, high copper recoveries, low initial capital, and low operating costs give the Santa Cruz Copper Project attractive economics at prices well below today's COMEX copper price (Table 1). Table 1. Life of mine copper price sensitivity Copper Price ($/pound) Pre-tax After-tax Life of Mine Free Cashflow ($ billon) Net Present Value8% ($ billion) Internal Rate of Return (%) Life of Mine Free Cashflow ($ billion) Net Present Value8% ($ billion) Internal Rate of Return (%) 3.75 4.73 1.29 17.8% 3.85 0.91 16.3% 4.00 5.44 1.59 20.0% 4.41 1.14 18.2% 4.25 (Base) 6.15 1.88 22.0% 4.96 1.38 20.0% 4.50 6.86 2.17 24.0% 5.52 1.61 21.8% 4.75 7.56 2.47 26.0% 6.07 1.84 23.5% 4.83 (COMEX Spot*) 7.79 2.56 26.6% 6.25 1.91 24.0% 5.00 8.27 2.76 27.9% 6.63 2.07 25.2% *COMEX spot price of $4.83 per pound of copper as of June 20, 2025. Details of the Preliminary Feasibility Study The Preliminary Feasibility Study is a Highly Engineered Study Supported by Extensive Drilling, Metallurgical and Hydrogeological Testwork, and Trade-off Studies Involving Global Leaders in Mine Engineering Since the 2023 Initial Assessment Study, Ivanhoe Electric has invested more than $100 million in new drilling, advanced testwork, and extensive engineering studies to produce the Preliminary Feasibility Study. The Study incorporates data gathered from an additional 149 drill holes totaling nearly 120,000 meters, more than 250 trade-off studies, and hundreds of hydrogeological and metallurgical tests. Since commencement of exploration at the Santa Cruz Copper Project in 2021, Ivanhoe Electric has completed 329 drill holes totaling 279,000 meters. Fluor Canada Ltd. served as Project Lead for the Study and was also responsible for surface infrastructure and heap leach pads, working in close collaboration with Ivanhoe Electric's Project team of more than 40 engineers, geologists, and technicians. Other industry-leading consultants involved in major workstreams of the Study include BBA USA Inc. for resources, reserves, underground mine planning and economic analysis, KCB Consultants Ltd. for heap leaching, Paterson & Cooke USA, Ltd. for paste backfill, Met Engineering, LLC for metallurgical testing, and INTERA Incorporated for hydrogeology. The Study summary results are presented below in Table 2. The Santa Cruz Copper Project compares favorably on a global scale in terms of C1 cash cost, and in terms of capital intensity when compared to North and South American greenfield copper projects (Figure 1 and Figure 2, respectively). Table 2. Summary results Description Units Life of Mine First 15 Years Production Data Mine Life Year 23 15 Reserve Tonnes Million tonnes 136 106 Copper Grade % 1.08 1.10 Daily Throughput Tonnes per day 15,000 20,000 Annual Copper Production Tonnes per year 56,685 72,186 Total Copper Cathode Produced Thousand tonnes 1,360 1,083 Recovery % 92.2 92.4 Capital Costs Initial Capital $ million 1,236 - Sustaining Capital $ million 1,281 1,176 Unit Costs Mining Cost $ per tonne processed 19.07 19.55 Processing Cost $ per tonne processed 7.31 7.02 General and Administrative Cost1 $ per tonne processed 3.04 3.03 Royalties $ per tonne processed 5.26 5.56 Total Operating Cost $ per tonne processed 34.68 35.16 Operating + Sustaining Cost $ per tonne processed 43.98 46.23 C1 Cash Cost $ per pound of copper 1.32 1.29 All-in-sustaining Cost $ per pound of copper 2.01 1.99 Financial Analysis Copper Price $ per pound 4.25 4.25 Domestic Cathode Premium $ per pound 0.14 0.14 Pre-tax Free Cashflow $ million 6,148 4,501 Pre-tax Net Present Value8% $ million 1,880 - Pre-tax Internal Rate of Return % 22.0 - After-tax Free Cashflow $ million 4,961 3,637 After-tax Net Present Value8% $ million 1,376 - After-tax Internal Rate of Return % 20.0 - After-tax Payback Period2 Year 4.4 - 1. General and Administrative Cost inclusive of property tax. 2. After-tax payback period from the start of operations in 2029. Figure 1. Cash cost curve of global copper mines, highlighting United States operating mines To view an enhanced version of this graphic, please visit: Figure 2. Initial capital intensity compared to North and South American greenfield copper projects To view an enhanced version of this graphic, please visit: The Santa Cruz Copper Project is Located on 100%-owned Private Land in the Heart of America's Copper State The Santa Cruz Copper Project is located approximately 40 miles southeast of Phoenix, Arizona in Casa Grande on nearly 6,000 acres of 100%-owned private land, including surface, mineral, and associated water rights necessary for the mining operation (Figure 3). Casa Grande is at the heart of a rapidly growing industrial corridor with readily available power and transportation infrastructure and a skilled local industrial workforce. Figure 3. Santa Cruz Copper Project location To view an enhanced version of this graphic, please visit: The planned site layout provides for a compact surface footprint of less than 2,600 acres, representing approximately 40% of the nearly 6,000 acres of private land 100% owned by Ivanhoe Electric at the Santa Cruz Copper Project. The site layout provides sufficient space for future expansion opportunities. Figure 4. Planned site layout To view an enhanced version of this graphic, please visit: High-Grade Oxide and Chalcocite Mineral Reserves Amenable to Heap Leaching Support a 23-Year Mine Life The Study includes an initial Mineral Reserve Estimate for the Santa Cruz Copper Project, including Probable Reserves for the Santa Cruz and East Ridge Deposits. Stope shapes were created based on mineralized zone geometry and optimized based on economic prospectivity and geotechnical parameters specific to the rock type, the orebody orientation, and the mining sequence. Recovery and dilution factors were applied to calculate the final tonnes and grade of the reserve. Probable Reserves of 136 million tonnes at a 1.08% total copper grade, totaling 1.5 million tonnes of contained copper were calculated (Figure 5). Only high-grade copper mineralization from the Oxide and Chalcocite domains of the Santa Cruz and East Ridge Deposits, highly amenable to the heap leaching flowsheet, comprises the current Mineral Reserves. Figure 5. Santa Cruz Copper Project Mineral Reserves and mine infrastructure To view an enhanced version of this graphic, please visit: Table 3. Santa Cruz Copper Project Mineral Reserves summary Deposit Classification Tonnes (thousand tonnes) Total Copper (%) Contained Copper(thousand tonnes) Santa Cruz Probable 132,061 1.08 1,430 East Ridge Probable 4,112 1.03 42 Total Probable 136,173 1.08 1,472 Notes: 1. The mineral reserves in this estimate are current to June 23, 2025 and were independently prepared, including estimation and classification, by BBA USA Inc. They are reported in accordance with the definitions for mineral reserves in S-K 1300. 2. The point of reference for the estimate is the point of delivery to the process facilities. 3. The mineral reserves for the Santa Cruz and East Ridge deposits were completed using Deswik mining software. Mineral reserves are defined within stope designs that are prescribed by rock mechanics, considering the specific characteristics of deposits, mineral domains, mining methods, and the mining sequence. Transverse longhole stoping is the optimal mining method with uppers and cut & fill methods used where appropriate. Mining will occur in blocks, extracting ore from the bottom upwards, with paste backfill providing ground support to sustain a production rate of 20,000 tonnes per day for the first 15 years of operation. 4. Mineral reserves are estimated at an NSR cutoff value of $43.95/t for longhole stoping and $60/t for longitudinal retreat stopes and drift and fill. The NSR values reflect the discrete metallurgical responses for each mineral reserve block using metallurgical recoveries for heap leach of 96% for acid soluble copper, 83% for cyanide soluble copper, 22% for residual copper. Underground mineable shapes optimization parameters include a long-term copper price of US$4.00/lb. 5. Mineral reserves account for mining loss and dilution. 6. Mineral reserves are a subset of the indicated mineral resource and do not include the inferred mineral resource. 7. Rounding, as required by the guidelines, may result in apparent summation differences between tonnes, grade, and contained metal content. Simplified Design and the Use of Modern Mining Technologies Contribute to a Faster Development Timeline, Targeting First Copper Cathode Production in 2028 and Ramp-up to Full Production From 2029 The Project's Mineral Reserves will be accessed by conventional twin decline drifts. The Study design includes the use of roadheader technology to construct the declines, measuring approximately 8 kilometers in combined length. Main intake and exhaust raises will be developed using blindbore shaft sinking to supply ventilation to the mine workings (Figure 6 and Figure 7). The underground mine will utilize the latest mining equipment, including a tele-remote-operated electric fleet, mine telemetry, and grade control technologies. Underground mining will primarily use longhole stoping and local drift-and-fill, totaling approximately 201 kilometers of stope cuts completed across 16 main levels. Hydrogeological mitigation strategies during decline development and mining include grouting, hydrostatic lining, and silica gel injection. Groundwater modelling and mitigation result in residual passive inflow rates ranging from approximately 6,000 to 8,000 gallons per minute during peak mining periods. Throughput will steadily increase from the start of production onward to achieve an average of 20,000 tonnes per day, producing an annual average of 72,000 tonnes of copper cathode over the first 15 years of the mine life (Figure 8). Figure 6. Santa Cruz Copper Project underground mine design, orthogonal view To view an enhanced version of this graphic, please visit: Figure 7. Santa Cruz Copper Project underground mine design, long-section To view an enhanced version of this graphic, please visit: Figure 8. Santa Cruz Copper Project production profile To view an enhanced version of this graphic, please visit: Study Supports High-Grade Heap Leach Operation that will Produce Pure Copper Cathode for United States' Consumption Data analysis and trade-off studies related to the extensive drilling and associated metallurgical, hydrogeological, and geotechnical studies identified the material benefits of using a conventional chloride-assisted on/off heap leaching flowsheet to produce copper cathode. A simple leaching operation reduces surface processing and ramp-up complexities while maintaining the ability to balance mine feed. Heap leaching also lowers surface initial and sustaining capital and lowers operating costs, which in turn enhances Mineral Reserves. Mined ore will be brought to the surface and processed through a conventional chloride-assisted on/off-heap leach process to produce copper cathode through solvent extraction and electrowinning (Figure 9). The high-grade nature of the Santa Cruz and East Ridge orebodies enables high copper recoveries averaging 92.2% over the life of mine, with low sulfuric acid consumption of 6 kilograms per tonne of treated ore. Up to 50% of the spent ore will be converted into paste and used as backfill underground. Figure 9. Santa Cruz Copper Project simplified flowsheet showing the production of copper cathode To view an enhanced version of this graphic, please visit: As is common in modern solvent extraction-electrowinning plants, London Metal Exchange Grade A copper production will be expected after an initial commissioning phase. Private Land Enables Streamlined Permitting Process The Santa Cruz Copper Project requires permits primarily from the City of Casa Grande, Pinal County, and the State of Arizona, with only one Federal permit required. Land use authorizations from the City of Casa Grande, including a General Plan Amendment and Major Amendment to a Planned Area Development Zone, have already been obtained and allow mining activities and infrastructure within the project site. Table 4. Current Santa Cruz Copper Project permitting status and timeline Permit Status Submittal Timeline The following permits have been obtained for exploration activities and are in the process of being amended for project construction activities: Arizona State Mine Inspector Mined Land Reclamation Plan Active/amendment in progress Q3 2025 Pinal County Dust Control permit Active/annual renewal Ongoing The following permits for construction activities are in preparation or have been submitted: City of Casa Grande Major Site Plan and Development permit In progress Q3 2025 Pinal County Air Quality Control District Class II Air permit Submitted Q1 2025 Arizona Department of Environmental Quality General Aquifer Protection permits for construction In progress Q3 2025 Arizona Department of Water Resources 45-513 Groundwater Withdrawal permit In progress Q4 2025 The following permits for construction and operation will be prepared and submitted as design and engineering details become available: Arizona Department of Transportation Encroachment permit for access off Highway 84 Road improvements engineering in progress Q4 2025 US Environmental Protection Agency Class V Underground Injection Control permit Engineering to inform application in progress Q4 2025 Arizona Department of Environmental Quality Individual Aquifer Protection permit Engineering to inform application in progress Q3 2026 Arizona Department of Environmental Quality Recycled Water Discharge permit Detailed engineering required for application, if necessary Q1 2027 The current Santa Cruz Copper Project development plan, subject to project financing and receipt of necessary permits, targets initial construction in the first half of 2026 and first copper cathode produced in 2028 (Figure 10). The indicative development plan is an illustrative timeline, subject to permitting and project financing. Figure 10. Santa Cruz Copper Project indicative development plan To view an enhanced version of this graphic, please visit: Additional Indicated Mineral Resources, Exclusive of Mineral Reserves, Provide Potential Opportunities for Future Expansion Indicated Resources at Santa Cruz and East Ridge, exclusive of Mineral Reserves, comprise a total of 1.5 million tonnes of contained copper. Indicated Resources in mineralized domains amenable to heap leaching at Santa Cruz total 0.8 million tonnes and 41,000 tonnes at East Ridge. These Indicated Resources at Santa Cruz and East Ridge are not included in the current mine plan, and if converted to Mineral Reserves, represent near-mine expansion potential. Santa Cruz also includes Indicated Resources of 0.5 million tonnes of contained copper grading 0.73% total copper in the Primary domain. The Primary domain comprises primary copper sulfide mineralization not amenable to the heap leach flowsheet. Additional testwork and studies on the Primary domain may provide longer-term expansion potential, requiring the development of additional processing infrastructure. Additionally, the Santa Cruz Copper Project includes Inferred Resources, which are not included in the Study or the associated mine plan, which comprise a further 3.3 million tonnes of contained copper across the Santa Cruz, East Ridge, and Texaco Deposits. Table 5. Mineral Resource Estimate, Exclusive of Mineral Reserves Summary Deposit Classification Tonnes (thousand tonnes) Total Copper (%) Gold (grams per tonne) Silver (grams per tonne) Contained Gold (thousand troy ounces) Contained Silver (thousand troy ounces) Contained Copper (thousand tonnes) Santa Cruz Indicated 178,451 0.80 0.024 1.43 139 8,211 1,435 Inferred 31,998 0.73 0.021 1.78 21 1,832 232 East Ridge Indicated 4,407 0.94 0.015 0.71 2 101 41 Inferred 48,676 0.89 0.006 0.40 9 623 436 Texaco Inferred 341,345 0.78 0.028 0.81 302 8,850 2,664 All Deposits Indicated 182,859 0.81 0.024 1.41 141 8,312 1,476 All Deposits Inferred 422,020 0.79 0.025 0.83 333 11,304 3,332 Notes on mineral resources: 1. The mineral resources in this estimate were independently prepared, including estimation and classification, by BBA USA Inc., and are reported in accordance with the definition for mineral resources in S-K 1300. 2. Mineral resources that are not mineral reserves do not have demonstrated economic viability. 3. Mineral resources are reported in situ, exclusive of mineral reserves. 4. The mineral resources for Santa Cruz, East Ridge, and Texaco deposit were completed using Datamine Studio RM software. 5. The mineral resources are current at June 23, 2025. 6. Mineral resources constrained assuming underground mining methods for the Santa Cruz deposit are reported at an NSR cutoff of US$32.00 for heap leach and US$34.00 for concentrator; Texaco deposit is reported at an NSR cutoff of US$32.00 for heap leach and US$34.00 for concentrator; and East Ridge deposit is reported at an NSR cutoff of US$40.00 for longhole stoping and US$50.00 for drift and fill. The cutoff reflects the total operating costs to define reasonable prospects for economic extraction by conventional underground mining methods. Material from within mineable shape-optimized wireframes has been included in the mineral resource. Underground mineable shapes optimization parameters include a long-term copper price of US$4.00/lb,gold price of US$1,900/oz, and silver price of US$24.00/oz. Process costs of US$7.00 to US$9.00 per processed tonne; direct mining costs between US$22.00 to US$40.00 per processed tonne reflecting various mining method costs (leach, long hole or drift and fill), mining general and administration costs of US$2.63 per processed tonne, onsite processing costs between US$31.63 to US$49.63 per processed tonne, along with variable royalties between 5.01% to 6.96% NSR, and a mining recovery of 100%. 7. Mineral resources are estimated using metallurgical recoveries for heap leach of 96% for acid soluble copper, 83% for cyanide soluble copper, 22% for residual copper, 0% for gold, and 0% for silver. Recoveries for concentrator are 0% for acid soluble copper, 90% for cyanide soluble copper, 90% for residual copper, 59% for gold, and 69% for silver. 8. Density was applied using weighted averages by deposit subdomain. 9. Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade, and contained metal content. Ivanhoe Electric to host conference call on the Santa Cruz Copper Project Preliminary Feasibility Study On Monday, June 23, 2025, Ivanhoe Electric will host a conference call to discuss the results of the Santa Cruz Copper Project Preliminary Feasibility Study. The call will include remarks from Ivanhoe Electric's Executive Chairman Robert Friedland, President, Chief Executive Officer Taylor Melvin, Senior Vice President of Mine Development Glen Kuntz, and other members of the Company's executive management team. DATE: Monday, June 23, 2025TIME: 10:00 am Eastern / 7:00 am Pacific / 7:00 am ArizonaLINK: A replay of the webcast, together with supporting presentation slides, will be made available on Ivanhoe Electric's website at following the event. Qualified Persons The Study, entitled "S-K 1300 Preliminary Feasibility & Technical Report Summary, Santa Cruz Copper Project, Arizona," is dated June 23, 2025, and was prepared in accordance with Subpart 1300 and Item 601 of Regulation S-K. The Study was prepared by the following firms: Fluor Canada Ltd. (Fluor), BBA USA Inc. (BBA), KCB Consultants Ltd. (KCB), Met Engineering, LLC (Met), INTERA Incorporated (INTERA), Burns & McDonnell Engineering Company, Inc. (Burns & McDonnell), Geosyntec Consultants, Inc. (Geosyntec), Haley & Aldrich, Inc. (Haley & Aldrich), Life Cycle Geo, LLC (Life Cycle Geo), Paterson & Cooke USA, Ltd. (Paterson & Cooke), Stantec Consulting Services Inc. (Stantec) and Tetra Tech, Inc. (Tetra Tech). The Study will be available on the SEC's EDGAR website as an exhibit to a Form 8-K filed by Ivanhoe Electric in connection with this news release. Ivanhoe Electric will have prepared and filed an independent technical report prepared under Canadian National Instrument 43-101 within 45 days of this news release. This report will be available on Ivanhoe Electric's website and on its SEDAR+ profile. For the purposes of Canadian National Instrument 43-101, the independent Qualified Persons responsible for preparing the scientific and technical information disclosed in this news release announcing the Study are Todd McCracken, Shane Ghouralal, and David Willock (BBA), Ulises Arvayo (Burns & McDonnell), Subhamoy Dasgupta and Ivan Sanchez (Fluor), Kirk Craig (Geosyntec), Rick Frechette (Haley & Aldrich), Annelia Tinklenberg (INTERA), Jim Casey (KCB), Tom Meuzelaar (Life Cycle Geo), James Moore (Met), Casey Schmitt (Paterson & Cooke), Kim Trapani (Stantec), and Daryl Longwell (Tetra Tech). Each Qualified Person has reviewed and approved the information in this news release relevant to the portion of the scientific and technical information for which they are responsible. Other disclosures of a scientific or technical nature included in this news release regarding the Santa Cruz Copper Project, have been reviewed, verified, and approved by Glen Kuntz, who is a Qualified Person as defined by Regulation S-K, Subpart 1300 promulgated by the U.S. Securities and Exchange Commission and by Canadian National Instrument 43-101. Mr. Kuntz is an employee of Ivanhoe Electric Inc. The Study and 43-101 technical report include relevant information regarding the assumptions, parameters and methods of the mineral resource and mineral reserve estimates on the Santa Cruz Copper Project, as well as information regarding data verification, exploration procedures and other matters relevant to the scientific and technical disclosure contained in this news release. About Ivanhoe Electric We are a U.S. company that combines advanced mineral exploration technologies with electric metals exploration projects predominantly located in the United States. We use our accurate and powerful Typhoon™ geophysical surveying system, together with advanced data analytics provided by our subsidiary, Computational Geosciences Inc., to accelerate and de-risk the mineral exploration process as we seek to discover new deposits of critical metals that may otherwise be undetectable by traditional exploration technologies. We believe the United States is significantly underexplored and has the potential to yield major new discoveries of critical metals. Our mineral exploration efforts focus on copper as well as other metals including nickel, vanadium, cobalt, platinum group elements, gold and silver. Through the advancement of our portfolio of electric metals exploration projects, headlined by the Santa Cruz Copper Project in Arizona and the Tintic Copper-Gold Project in Utah, as well as other exploration projects in the United States, we intend to support United States supply chain independence by finding and delivering the critical metals necessary for the electrification of the economy. We also operate a 50/50 joint venture with Saudi Arabian Mining Company Ma'aden to explore for minerals on ~48,500 km2 of underexplored Arabian Shield in the Kingdom of Saudi Arabia. Website: Contact Information Mike PattersonVice President, Investor Relations and Business DevelopmentEmail: mike@ Phone: 1-480-601-7878 Follow us on Ivanhoe Electric's Executive Chairman Robert Friedland: @robert_ivanhoe Ivanhoe Electric: @ivanhoeelectric Ivanhoe Electric's investor relations website located at should be considered Ivanhoe Electric's recognized distribution channel for purposes of the Securities and Exchange Commission's Regulation FD. Forward-Looking Statements Certain statements in this news release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable U.S. and Canadian securities laws. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Ivanhoe Electric, its projects, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict", "target", "project" and other similar terminology, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect Ivanhoe Electric's current expectations regarding future events, performance and results and speak only as of the date of this news release. Such statements in this news release include, without limitation: the projections, assumptions and estimates contained in the Preliminary Feasibility Study related to the Santa Cruz Copper Project, including but not limited to those related to capital and operating costs, metal prices, cash flow, cash costs, revenue, net present value, internal rate of return, mine design and mining techniques and processes, copper production, grade and recoveries, development, throughput, life of mine, illustrative timelines related to mine construction, permitting and copper production, potential financing, including through Export-Import Bank of the United States, jobs during construction and operations, mine sequencing, mining technology, equipment, staffing and infrastructure, emissions, use of land, water management and estimates regarding groundwater flow, power and other resources, estimates of mineral resources and reserves, potential for expansion of mineral resources, copper grade and cash cost costs relative to other mines, use of renewable energy, use of energy storage technologies, the ability to produce pure copper cathode, the ability to secure state and local permits, and planned or potential developments in the businesses of Ivanhoe Electric. Forward-looking statements are based on management's beliefs and assumptions and on information currently available to management. Such statements are subject to significant risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including changes in the prices of copper or other metals Ivanhoe Electric is exploring for; the results of exploration and drilling activities and/or the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations; the final assessment of exploration results and information that is preliminary; the significant risk and hazards associated with any future mining operations, extensive regulation by the U.S. government as well as local governments; changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts with Ivanhoe Electric to perform as agreed; and the impact of political, economic and other uncertainties associated with operating in foreign countries, and the impact of the COVID-19 pandemic and the global economy. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements and risk factors described in Ivanhoe Electric's Annual Report on Form 10-K filed and other disclosures with the U.S. Securities and Exchange Commission. No assurance can be given that such future results will be achieved. Forward-looking statements speak only as of the date of this news release. Ivanhoe Electric cautions you not to place undue reliance on these forward-looking statements. Subject to applicable securities laws, Ivanhoe Electric does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release, and Ivanhoe Electric expressly disclaims any requirement to do so. 1 Initial capital expenditures divided by average annual copper production for the first 15 years of mining2 S&P Global Market Intelligence co-product C1 copper cash cost curve (Q4 2024 dataset dated June 2025), compared to Santa Cruz Copper Project Preliminary Feasibility Study life of mine C1 cash cost and annual average copper production for the first 15 years of mining To view the source version of this press release, please visit Sign in to access your portfolio
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12-06-2025
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Ivanhoe Mines Announces Restart of Underground Mining Operations on Western Side of Kakula Mine on June 7, 2025
Underground water levels in Kakula Mine stabilized; dewatering to commence in Q3 2025 Kamoa-Kakula revises 2025 production guidance to between 370,000 and 420,000 tonnes of copper Smelter start-up expected to commence in September 2025, with first anode anticipated in October 2025 Ivanhoe Mines to host a conference call for investors before market open on June 12, 2025 Kolwezi, Democratic Republic of the Congo--(Newsfile Corp. - June 11, 2025) - Ivanhoe Mines (TSX: IVN) (OTCQX: IVPAF) Executive Co-Chairman Robert Friedland and President Marna Cloete announce today an update on operational activities at the Kamoa-Kakula Copper Complex, including preliminary geotechnical findings relating to underground seismic activity experienced at the Kakula Mine, as first announced on May 20, 2025. Underground mining on the western side of the Kakula Mine has resumed in a safe and conservative manner, with equipment and mining crews returning underground on June 7, 2025. The short-term mine plan for the western side of Kakula has been updated to include recommendations from the preliminary findings. Mining activities in the eastern side of the Kakula Mine are expected to start imminently, with activities solely focused on developing access drives to a new mining area east of the existing mine workings. Development to the new mining area will be isolated from the dewatering activities on the same side of the mine. As announced on June 2, 2025, additional underground pumping capacity was installed at the Kakula Mine, stabilizing underground water levels. The frequency of seismic activity has decreased since first reported on May 18, 2025. Dewatering the eastern side of the Kakula Mine is expected to commence in August 2025 and be complete during the fourth quarter. Recommendations from the preliminary geotechnical findings from world-leading experts have been included in the short-term mine plans for the Kakula Mine to ensure a safe restart of underground operations. Concurrently, medium- and long-term mine plans are under review by Kamoa-Kakula management, together with technical consultants. The Phase 1 and 2 concentrators continue to operate at approximately 50% of their combined operating capacity, processing ore from surface stockpiles. The processing rate of the concentrators will ramp up throughout the remainder of 2025, as mining on the western side of the Kakula Mine increases, supplemented by feed from ore stockpiles. Mining operations at the Kamoa underground mine, as well as ore processing at the adjacent Phase 3 concentrator, continue to outperform. With the necessary copper concentrate expected to be available, the on-site copper smelter is anticipated to start up in September, with first anode expected in October 2025. Ivanhoe Mines Executive Co-Chair, Robert Friedland commented: "We are thankful and deeply appreciate our team's swift response to stabilize underground water levels in the Kakula Mine and resume mining on the western side. The team has quickly secured the critical equipment needed to safely dewater the entirety of the mine, while preparing to access a new high-grade mining area in the east. "While it's still too early to outline our detailed plans for 2026 and 2027, the future remains bright across the Kamoa-Kakula Copper Complex and adjacent Western Forelands Exploration Project. Kamoa-Kakula is, and will continue to be, a world-class Tier One operation, with decades ahead of us as one of the world's leading copper producers." President & Chief Executive Officer, Marna Cloete, commented: "We are working tirelessly to safely and systematically restore full operations at the Kakula Mine. Safety has always been, and will always remain, our highest priority. We want to extend our sincere thanks to the mining crews, the engineering teams and our long-term contractors for their extraordinary efforts in restoring pumping capacity and restarting operations, all without any lost time injuries. "The resilience of our team and the strength of our operations reflect the extraordinary nature of this world-class copper district-and the future it holds for generations to come." Figure 1. Outline of the Kakula and Kakula West orebody, overlaid with the underground development since mining commenced in 2021. A significant portion of the original Kakula deposit remains unmined as of May 2025. To view an enhanced version of this graphic, please visit: Notes: Existing underground development as at May 2025. Illustration is based on the 2023 Kamoa-Kakula IDP showing the estimated average grade of each vertical stack of blocks above a 2% total copper cut-off. A minimum 3-metre thickness is applied. Underground water levels in Kakula Mine have stabilized; underground mining recommences on the western side of Kakula Although water inflow rates into the Kakula Mine modestly increased following the initial seismic activity, they have since stabilized at approximately 4,000 litres per second. With existing underground pumping infrastructure impacted by the seismic activity, a total of approximately 4,400 litres per second of additional underground pumping capacity was installed, stabilizing underground water levels. The new pump stations feed into the existing central pumping infrastructure, where the water is then pumped to surface at four locations near the bottom of the north and south twin declines, as shown in Figure 2. With water levels stabilized, mining in the western side of the Kakula Mine has restarted. Mobile equipment and mining crews, which were evacuated from the mine on May 18, 2025, are returning underground, with the first blast having occurred on June 7, 2025. Short-term mine plans have been updated to include the recommendations from the preliminary geotechnical findings. Kamoa-Kakula's mining crews aim to ramp up mining from the western side of the Kakula Mine to approximately 300,000 tonnes per month (3.6 million tonnes per year on an annualized basis) during the second half of 2025, subject to underground conditions. For the remainder of 2025, Kakula's underground mining crews will focus on three activities: ramping up mining on the western side of the Kakula Mine; developing a new mining area on the eastern side of the Kakula Mine; and ramping up production from the Kamoa mining area. Figure 2: Overview of Kakula Mine's existing underground infrastructure, showing current pumping rates, future pumping capacity and depth of mine workings. To view an enhanced version of this graphic, please visit: The additional mining crews deployed to the Kamoa mining area, approximately 10 kilometres north of Kakula, will assist the existing teams with underground development, as well as decline development from the construction of a new box cut planned at the Kansoko Mine. The new box cut will enable increased production from Kansoko, providing an additional source of ore for the Phase 1 and Phase 2 concentrators. Mining crews to focus on new mining area in eastern side of Kakula; development to commence imminently, isolated from dewatering activities Mining in the eastern side of the Kakula Mine will follow a new mine plan, prioritizing development to a new mining area further east, beyond the existing mine workings. The new mining area will be separated from the existing mine workings by a barrier pillar. The barrier pillar is designed to protect the new mining area from any potential spread of geotechnical instability from the existing mining area. Mining crews will construct two new access drives to the new mining area, which are expected to start imminently. The new access drives will be developed simultaneously, advancing east from existing underground infrastructure, as shown in Figure 2. Development to the new mining area is expected to be conducted in both ore and waste and be completed in the second quarter of 2026. The new development drives will be isolated from the mine workings that being dewatered and will advance independently of dewatering activities. Following the completion of dewatering activities on the eastern side of Kakula, a physical geotechnical inspection of the mine's existing workings will be conducted, concluding the full assessment by the geotechnical experts. The results of this assessment will determine the approach and extent of mining in this area. As shown in Figure 2, the mine workings are at their deepest on the eastern side of the mine and therefore underground flooding is predominantly concentrated around this area. The Kamoa-Kakula engineering team has a two-stage plan to dewater the entire Kakula Mine. Stage One involves the installation of additional temporary underground pumping infrastructure to stabilize and maintain current water levels. Stage One was completed as announced on June 2, 2025. Stage Two involves the installation of high-capacity, submersible pumps, and new permanent infrastructure to fully dewater the entire Kakula Mine from surface. Kamoa Copper has ordered five high-capacity pumps, each rated at 650 litres per second. Additional pumps will also be ordered as part of the long-term pumping infrastructure plan. These pumps will be deployed in pairs down existing shaft infrastructure, accessing the deepest sections of the Kakula Mine as shown in Figure 2. Dewatering activities are expected to commence in August 2025. Engineering crews will refurbish underground pumping and ventilation infrastructure, as well as complete geotechnical assessments, as water levels subside. Dewatering of the entire Kakula Mine is expected to be complete during the fourth quarter. Looking south: The two existing shaft locations where the "Stage Two" dewatering surface pumping infrastructure will be installed to dewater the eastern side of the Kakula Mine. Water will be discharged into existing surface water channels (right of picture). To view an enhanced version of this graphic, please visit: Looking north with the Phase 1 and 2 concentrators in the background: One of the two shaft locations shown in the foreground that will be used for the "Stage Two" dewatering of the deepest area of the Kakula Mine. To view an enhanced version of this graphic, please visit: A high-capacity submersible pump, similar to those being procured by Kamoa Copper for dewatering the Kakula Mine, prior to being lowered down a shaft at the Luansha Copper Mine, Zambia in September 2024. Photo source: CNMC (China Nonferrous Metal Mining Group Co., Ltd). To view an enhanced version of this graphic, please visit: Preliminary geotechnical findings on the cause of recent seismic activity Two prominent, independent geotechnical engineering organizations, Beck Engineering of New South Wales, Australia (Beck Engineering) and Open House Management Solutions of Potchefstroom, South Africa (Open House), were engaged and mobilized to Kamoa-Kakula shortly after seismic activity was first detected on May 18, 2025. Both consulting engineering firms have been working diligently with Kamoa-Kakula's engineering team, with support from Ivanhoe Mines. Preliminary findings indicate that the seismic activity originated in an area within the eastern side of the Kakula Mine with a mature percentage of extraction. Current thinking postulates that blocks of ore, earmarked for secondary extraction, started to yield in a cascading fashion, which resulted in stress redistribution onto regional pillars. As a consequence, the regional pillars became over-stressed and started to yield. The backfill, placed in mined-out stopes, was not capable of preventing the stress redistribution onto regional support pillars, but may have been a mitigant. The possibility that adverse regional geological features may have exacerbated the yielding of regional pillars cannot be excluded at this time. Pillars are sections of untouched ore or rock left in place to support the roof of the mine, while stopes are mined-out areas. Backfill is the process whereby mined-out stopes are filled with a mixture of concentrator tailings and cement, which cures to achieve a targeted strength. The geotechnical assessment has not yet been finalized as it relies on physical access to the eastern section of the Kakula Mine once dewatering is completed. The preliminary findings recommend modifying the short-term mine plans to increase pillar widths for additional structural support. The findings also advise changes to the mining sequence to improve stress distribution and overall stability. Furthermore, enhanced geotechnical monitoring will be installed throughout the mine. Kamoa-Kakula's management, together with Beck Engineering, Open House and other technical consultants, are evaluating any changes to the short-, medium- and long-term mine plans in light of these preliminary geotechnical findings. Work on an updated life-of-mine integrated development plan, which was underway before the seismic activity occurred, has been paused until Ivanhoe Mines' engineering team and its panel of technical experts have reviewed and agreed on any updated assumptions. Ivanhoe Mines will provide a timing update on the delivery of an updated IDP once work recommences. Members of Kamoa-Kakula's mining crew, (L-R) Kalume Malidja, Mining Foreman and Morné Du Plooy, Mining Superintendent To view an enhanced version of this graphic, please visit: Phase 1 and 2 concentrators operating at reduced capacity and set to ramp up as mining restarts on western side of the Kakula Mine; Phase 3 concentrator continues to outperform Crews recommenced mining on the western side of Kakula on June 7, 2025. Mining from this section will commence safely and conservatively, with planned ramp-up to an annualized mining rate of 3.6 million tonnes during the third quarter. This rate is sufficient for the Phase 1 and 2 concentrators to operate at a throughput of more than 80% of their combined design capacity of 9.2 million tonnes per annum, supplemented by ore from surface stockpiles and ore trucked from the Kamoa mines. Run-of-mine grade from the western side of Kakula, including development, is expected to range between 3.0% and 4.0% copper for the remainder of the year. The Phase 1 and 2 concentrators continue to operate at approximately 50% of their combined capacity, processing ore from surface stockpiles since underground operations ceased on May 18, 2025. The Phase 3 concentrator, located adjacent to the Kamoa mines area as shown in Figure 3, has continued to outperform operationally since the start of the year. The concentrator is operating at an average annualized milling rate of approximately 6.5 million tonnes per annum, which is 30% higher than the concentrator's design capacity of 5 million tonnes per annum. Year-to-date, ore processed by the Phase 3 concentrator has an average feed grade of 2.84% copper. Mining from the Kamoa and Kansoko mines, have ramped up over the past 2 months to a combined rate of over 6.8 million tonnes per annum on an annualized basis. Short-term mine plans for the Kamoa and Kansoko mines have findings been updated to include the recommendations from the preliminary geotechnical assessment. Longer-term mine plans will be also be reviewed alongside Kakula. Figure 3. Overview of the Kamoa-Kakula Copper Complex To view an enhanced version of this graphic, please visit: Revised 2025 production guidance Kamoa-Kakula's updated 2025 production guidance is based on several assumptions and estimates as of June 10, 2025. The guidance provided involves estimates of known and unknown risks, uncertainties, and other factors that may cause the actual results to differ materially. The revised 2025 production guidance takes into account the probable effect of recent seismic activity and associated interruptions in mining operations at the Kakula Mine. Although mining in the western side of the Kakula Mine has restarted risk factors remain, including; it is too early to accurately predict potential disruption caused by further unexpected seismic activity, the integrity of underground infrastructure, the ability to ramp up underground operations, the ability to complete dewatering activities and the time required to access the new mining areas. The updated 2025 production guidance is based on an assessment of these factors that management believes are reasonable at this time, given all available information. A waterfall diagram shown in Figure 4 details a breakdown of the revised production guidance. Revised 2025 Production Guidance Kamoa-Kakula 370,000 - 420,000 Contained copper in concentrate (tonnes) All figures are on a 100%-project basis and metal reported in concentrate is before refining losses or payability deductions associated with smelter terms. Figure 4. Waterfall breakdown of original to revised 2025 production guidance, approximated by category ('000's tonnes of copper) with percentage change shown in boxes To view an enhanced version of this graphic, please visit: The 2026 target of approximately 600,000 tonnes of copper production is withdrawn pending further review. Ivanhoe Mines will provide a timely update on the 2026 target production rate when more information becomes available. Ivanhoe Mines will provide updated 2025 C1 cash cost (C1) per pound of payable copper in the second quarter of 2025 financial results. On-site direct-to-blister smelter to start up in third quarter Kamoa-Kakula's senior management has confirmed that the start-up of the on-site direct-to-blister copper smelter will commence in early September 2025, with first anode expected in October. The smelter can operate at a minimum operating capacity of 50%, or approximately 250,000 tonnes of copper on an annualized basis. As at May 31, 2025, unsold concentrate stockpiles consisted of 33,000 tonnes of copper. In preparation for the first feed of concentrate, approximately four to six weeks after start-up commences, it is expected that total unsold concentrate stockpiles will be approximately 35,000 tonnes of copper in concentrate. In addition, Kamoa-Kakula's senior management anticipates the commissioning of the 178-megawatt Turbine #5 at the Inga II hydroelectric dam in October 2025, further boosting domestically generated hydroelectricity supplied to the Kamoa-Kakula Copper Complex. Ivanhoe Mines to host a conference call for investors on June 12, 2025 The company will hold an investor conference call to discuss the operational update at Kamoa-Kakula before the market opens on June 12, 2025, at 8:00 a.m. Eastern time / 5:00 a.m. Pacific time. The conference call will conclude with a question-and-answer (Q&A) session. Media are invited to attend on a listen-only basis. To view the webcast, use the link: Audience Phone Number: (+1) 647 951 0841 (Toll, for international callers)(+1) 888 985 7261 (Toll-Free North America) An audio webcast recording of the conference call, together with supporting presentation slides, will be available on Ivanhoe Mines' website at Disclosure of Technical Information Disclosures of a scientific or technical nature in this news release, other than the preliminary geotechnical findings and the technical information in Figure 1, have been reviewed and approved by Steve Amos, who is considered, by virtue of his education, experience, and professional association, a Qualified Person under the terms of NI 43-101. Mr. Amos is not considered independent under NI 43-101 as he is Ivanhoe Mines' Executive Vice President, Projects. Mr. Amos has verified the technical data disclosed in this news release. Disclosures of a scientific or technical nature regarding the preliminary geotechnical findings in this news release have been reviewed and approved by Koos Bosman, who is considered, by virtue of his education, experience, and professional association, a Qualified Person under the terms of NI 43-101. Mr. Bosman is considered independent of the company for purposes of NI 43-101 as he is Managing Director of Open House. Mr. Bosman has verified the technical data regarding the preliminary geotechnical findings disclosed in this news release. Disclosures of a scientific or technical nature in Figure 1 of this news release have been reviewed and approved by Joshua Chitambala, who is considered, by virtue of his education, experience, and professional association, a Qualified Person under the terms of NI 43-101. Mr. Chitambala is not considered independent under NI 43-101 as he is the Resource Manager for Ivanhoe Mines. Mr. Chitambala has verified the other technical data regarding the surface stockpiles disclosed in this news release. About Ivanhoe Mines Ivanhoe Mines is a Canadian mining company focused on advancing its three principal projects in Southern Africa; the expansion of the Kamoa-Kakula Copper Complex in the DRC, the ramp-up of the ultra-high-grade Kipushi zinc-copper-germanium-silver mine, also in the DRC; and the phased development of the tier-one Platreef platinum-palladium-nickel-rhodium-gold-copper Mine in South Africa. Ivanhoe Mines is exploring for copper in its highly prospective, 54-100% owned exploration licences in the Western Forelands, covering an area over six times larger than the adjacent Kamoa-Kakula Copper Complex, including the high-grade discoveries in the Makoko District. Ivanhoe is also exploring for new sedimentary copper discoveries in new horizons including Angola, Kazakhstan, and Zambia. Follow Robert Friedland (@robert_ivanhoe) and Ivanhoe Mines (@IvanhoeMines_) on X. Information contact Investors Vancouver: Matthew Keevil +1.604.558.1034 London: Tommy Horton +44 7866 913 207 MediaTanya Todd +1.604.331.9834 Forward-Looking Statements Certain statements in this news release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the company, its projects, or industry results to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified using words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events, or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect the company's current expectations regarding future events, performance, and results and speak only as of the date of this news release. Such statements include, without limitation: (i) statements that development from existing underground infrastructure toward a new mining area in the eastern side of the Kakula is expected to commence imminently, and that this development will be isolated from the dewatering activities; (ii) statements that dewatering of the eastern side of the Kakula Mine is expected to commence by the end of August 2025 and be complete during the fourth quarter; (iii) statements that the processing rate of the concentrators will ramp up throughout the remainder of 2025, as mining on the western side of the Kakula Mine increases, supplemented by feed from ore stockpiles; (iv) statements that, with necessary copper concentrate expected to be available, the on-site copper smelter is expected to start up in the third quarter, with first anode expected in October; (v) statements that Kamoa-Kakula's mining crews aim to ramp up mining from the western side of the Kakula Mine to approximately 300,000 tonnes per month (3.6 million tonnes per year on an annualized basis) during the second half of 2025, subject to underground conditions; (vi) statements that for the remainder of 2025, Kakula's underground mining crews will focus on the following three activities: ramping up mining on the western side of the Kakula Mine, developing a new mining area on the eastern side of the Kakula Mine and ramping up production from the Kamoa mining area; (vii) statements that the new box cut at Kansoko will enable increased production from Kansoko, providing an additional source of ore for the Phase 1 and Phase 2 concentrators; (viii) statements that development of a new mining area on eastern side of the Kakula Mine will commence imminently; (ix) statements that development of the new mining area is expected to be conducted in a mix of ore and waste and be completed in the second quarter of 2026; (x) statements that following the completion of dewatering activities on the eastern side of Kakula, a physical geotechnical inspection of the mine's existing workings will be conducted, concluding the full assessment by the geotechnical experts; (xi) statements regarding additional pumps being ordered as part of the long-term pumping infrastructure plan and such pumps being deployed in pairs; (xii) statements that delivery, installation, and commissioning of the surface dewatering infrastructure is expected by mid-September; (xiii) statements regarding the impact of the preliminary assessment on the mine plan at Kakula, Kamoa and Kansoko; (xiii) production guidance for Kamoa Kakula for 2025; (xiv) statements that ore from the western side of Kakula is expected to deliver a head grade ranging between 3.0% and 4.0% copper; (xv) statements that the smelter's minimum operating capacity is 50%, or approximately 250,000 tonnes of copper on an annualized basis; (xvi) statements that Kamoa-Kakula's senior management anticipates the commissioning of the 178-megawatt Turbine #5 at the Inga II hydroelectric dam in September, further boosting domestically generated hydroelectricity to the Kamoa-Kakula Copper Complex; and (xv) statements regarding the locations where the "Stage Two" dewatering surface pumping infrastructure will be installed to dewater the eastern side of the Kakula Mine and that water will be discharged into existing surface water channels. Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indicators of whether such results will be achieved. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to: (i) uncertainty around the rate of water ingress into underground workings; (ii) the ability, and speed with which, additional equipment can be secured; (iii) the continuation of seismic activity; (iv) the state of underground infrastructure; (v) uncertainty around when future underground access can be secured; (vi) the fact that future mine stability cannot be guaranteed; (vii) the fact that future mining methods, may differ the impact on Kakula operations; and (viii) the ultimate conclusion of the assessment of the cause of the seismic activity at Kakula and the impact of same on the mining plan at the Kamoa Kakula Copper Complex. Additional factors also include those discussed above and under the "Risk Factors" section in the company's MD&A for the three months ended March 31, 2025, and its current annual information form, and elsewhere in this news release, as well as unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; changes in the rate of water ingress into underground workings; the continuation of seismic activity; the state of underground infrastructure; delays in securing underground access; changes to the mining methods required in the future; the failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations. Although the forward-looking statements contained in this news release are based upon what management of the company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release. The company's actual results could differ materially from those anticipated in these forward-looking statements as a result of the factors outlined in the "Risk Factors" section in the company's MD&A for the three months ended March 31, 2025, and its current annual information form. 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