Sales and Distribution
KICO is a clear example of the growing importance of the Democratic Republic of Congo as a supplier of high-quality, strategic minerals to global markets. The mine also demonstrates the tier-one quality of the orebody and workforce that make the Central African Copperbelt one of the world’s most significant mining regions.
After three decades of care and maintenance, KICO has returned this historic operation to production, joining Kamoa-Kakula as a major contributor to Ivanhoe Mines’ green metals portfolio.
Inland logistics across the African continent are managed by Ivanhoe Marketing (Pty) Ltd, a wholly owned subsidiary of Ivanhoe Mines, established to arrange the transportation of zinc concentrate from mine gate to point of delivery.
Approximately 50% of KICO’s concentrate is expected to be delivered to Europe for smelting on a Cost, Insurance and Freight (CIF) basis, exported via the port of Walvis Bay. The remaining 50% is expected to be sold on a Delivered at Place (DAP) basis to the port of Durban.
Ivanhoe Marketing has entered into off-take agreements with China International Trust and Investment Corporation (CITIC) and Trafigura for the sale of KICO’s concentrate.
The concentrate is expected to contain approximately 55% zinc with low impurity levels. Off-take agreements have been secured for approximately two-thirds of KICO’s zinc concentrate production over a five-year term. The agreements reflect standard international commercial terms, including payables and treatment charges based on the zinc industry’s annual benchmark. The 2024 annual benchmark treatment charge is $165 per tonne of concentrate.
Given the current international shortage of clean zinc concentrates to feed the world’s smelters, spot treatment charges are significantly lower than the $165 per tonne benchmark. Off-take agreements for the remaining concentrate are expected to be placed in the coming months.
In addition to the off-take agreements, Trafigura and CITIC Metal have each committed a $60 million loan facility to KICO over the term of their off-take contract, at an interest rate of SOFR plus 6%.
KICO has also signed a $50 million bank facility with domestic lender FirstBank DRC, at an interest rate of SOFR plus 4.5%.