Ivanhoe Mines (TSX: IVN), founded by billionaire Robert Friedland, plans to begin exploring Angola early next year for copper after securing rights over an area the size of Switzerland.
The Canadian miner has budgeted US$10 million for an initial five years of copper exploration in the southwest African country’s Moxico and Cuando Cubango provinces, the company said on Monday. The government granted it 22,195 sq. km of prospecting rights.
Ivanhoe calls the area a highly prospective greenfield copper exploration ground as it considers geology similar to its Kamoa-Kakula complex in neighbouring Democratic Republic of Congo (DRC). Angola, more known for oil and diamonds than minerals, has been trying to diversify its economy for years, but few metals projects exist. Anglo American (LON: AAL), its gem unit De Beers and Rio Tinto (ASX: RIO) also have exploration activities in Angola.
“Our goal is to make Angola a globally significant producer of strategic minerals that our planet so desperately needs for many generations to come,” Friedland, Ivanhoe’s executive co-chairman, said in a statement.
BMO Capital Markets queried whether copper mineralization ignores borders in a note on Monday. The exploration area is covered by Kalahari sand and Karoo volcanics that complicate exploration, mining analyst Andrew Mikitchook said.
The deal stems from a mining conference in Angola last week. Also there, Angolan authorities signed a memo with the United States Geological Survey to map the country’s critical minerals including copper, lithium, cobalt and manganese.
Half goes back
Ivanhoe can extend the permit to a maximum of seven years, but it will have to relinquish half of the prospecting rights at the end of the initial five years. Limited exploration has been conducted so far in the area granted to Ivanhoe.
The company’s Kamoa-Kakula complex began exporting copper in mid-2021. Ivanhoe currently ships output from the mine by rail via the so-called Lobito Corridor that crosses Angola to the Atlantic Ocean.
Ivanhoe is also working to restart the historic ultrahigh-grade Kipushi zinc mine in the DRC, and is undertaking exploration at the Western Foreland project in the country.
In South Africa, it is advancing construction of its 64%-owned Platreef palladium, rhodium, nickel, platinum, copper and gold project.
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