A disagreement has surfaced between mining giants Ivanhoe Mines and Zijin Mining over the impact of a recent seismic event at the Kamoa-Kakula copper mine in the Democratic Republic of Congo (DRC).
On Friday, May 23, 2025, Zijin Mining issued a statement warning of a potential “negative impact” on production forecasts due to the incident, which led to a temporary suspension of underground mining operations.
However, Ivanhoe Mines—Zijin’s joint venture partner and the mine’s operator—has pushed back on this assessment. Ivanhoe reaffirmed its 2025 production target of 520,000 to 580,000 tonnes of copper, insisting the brief operational pause has not affected overall output expectations.
Zijin described the seismic event as having caused “multiple roof falls and rib spalling” in the eastern section of the Kakula deposit. Ivanhoe, in contrast, strongly disputed this account. In a same-day press release, the company reported that inspections by senior managers and geotechnical experts found no evidence of collapsed stopes or compromised structural pillars.
“Preliminary indications suggest that the seismic activity led to a redistribution of underground forces, resulting in sidewall rock falls—a process known as ‘scaling’—in certain areas,” Ivanhoe stated, emphasizing that the damage was minor and mostly superficial.
Repair efforts are now focused on restoring underground pumping infrastructure, including damaged cables and pipework. Mining activities are expected to resume shortly, beginning with the western section of the Kakula mine.
Zijin, however, indicated it may bring in third-party specialists to investigate the cause of the seismic event. Their review will assess long-term mining practices, including backfilling techniques, hydrogeological controls, and production strategies—hinting at a possible reevaluation of Ivanhoe’s operational protocols.
Ivanhoe has stood firm, stating it will reassess annual production guidance only after its internal review is complete. A more comprehensive operational update is expected on Tuesday, May 27, 2025.
The incident has already triggered a market reaction. Ivanhoe’s shares fell nearly 10% over the past week, offsetting a modest 0.86% gain over the previous month.
This tension reflects broader complexities in the ownership structure of Kamoa Copper, the joint venture behind the mine. Ivanhoe and Zijin each hold a direct 39.6% stake, but Zijin’s additional ownership in Ivanhoe raises its total economic interest to 44.45%. The Congolese government owns the remaining 20% and has yet to issue an official response.
The Kamoa-Kakula copper complex is a cornerstone asset for both companies. In 2024, the project contributed approximately 1.72 billion yuan (USD 238 million) in net profit to Zijin—around 5.4% of its total annual earnings.
As investigations continue, the outcome of this dispute may have lasting implications for operational control and investor confidence in one of the world’s most significant copper developments.
