Ivanhoe, Qatar to team up on critical metals in Africa

Ivanhoe Mines’ (TSX: IVN) has entered into a memorandum of understanding (MoU) with Qatar’s sovereign wealth fund to further advance the company’s exploration efforts in Africa. Shares rose.

The MoU, signed on Friday, sets out a framework for collaboration to find, develop and sustainably supply the critical minerals essential to the global energy transition, the company said in a statement.

“We are excited to build this long-term, world-class alliance as we unlock new frontiers in our hunt for the next generation of great discoveries, which we will sustainably mine together,” Ivanhoe Executive Co-chair Robert Friedland said in a release.

Middle East deals

The agreement follows a similar deal this week between MP Materials (NYSE: MP), the U.S. Department of Defense and Saudi Arabia’s state mining company Ma’aden to form a joint venture in the kingdom and build a rare earths refinery.

Ivanhoe Mines shares gained more than 5% to $12.56 apiece on Friday afternoon in Toronto, for a market capitalization of C$18 billion. The has traded in a 12-month range of $8.76 to $20.77.

The MoU’s signing coincided with this week’s visit by the Emir of Qatar, Sheikh Tamim bin Hamad Al-Thani, to the Democratic Republic of  Congo (DRC), where he met with President Félix Tshisekedi to discuss bilateral relations between the two countries. The agreement with the Qatar Investment Authority (QIA) further extends Ivanhoe’s alliance with the Arab nation, which in September announced a US$500 million strategic investment into Ivanhoe.

‘Strategic partnerships’

“This MoU is a testament of QIA’s commitment to building strategic partnerships with leading suppliers of critical minerals, supporting global efforts to develop new energy infrastructure and power advanced technologies,” added Mohammed Saif Al-Sowaidi, CEO of QIA.

Ivanhoe currently operates the Kamoa-Kakula copper complex, one of the largest in the world as well as the high-grade Kipushi zinc-copper-germanium-silver mine, both in DRC.

Under the MoU terms, QIA will support Ivanhoe’s management team in its pursuit of existing and new growth projects, such as exploration work underway to develop the Western Forelands exploration project in DRC, including the Makoko district.