Ivanhoe Mines’ (TSX: IVN; OTCQX: IVPAF) executive chairman Robert Friedland and CEO Lars-Eric Johansson held a conference call yesterday to share the progress at the company’s three African projects, including Kamoa-Kukula, where Ivanhoe recently signed a landmark agreement with the Congolese government.
On Nov. 11, Ivanhoe and project partner, China’s Zijin Mining Group, transferred a further 15% of the Kamoa-Kukula copper project to the government of the Democratic Republic of Congo (DRC). As a result, the Congolese government now has a direct 20% stake in Kamoa-Kukula, while Ivanhoe and Zijin each hold an indirect 39.6% interest. Hong Kong-based Crystal River Global holds the remaining 0.8% interest.
Johansson recalls the decision to provide another 15% stake to the DRC government dates back to 2012, when Ivanhoe received the mining right for the project. “We believe the fair and long term ownership structure for the project was 80% for Ivanhoe and 20% for the DRC government,” he said.
Friedland, who joined the call from Hong Kong, describes the deal as “pivotal” and a “win-win situation” for all parties.
Read the entire story at The Northern Miner.