Ivanhoe Mines Responds to Media Reports Regarding Copper Concentrate Exports from the DRC

SOURCE: Ivanhoe Mines | May 31, 2021

Kolwezi, Democratic Republic of Congo – Ivanhoe Mines (TSX: IVN; OTCQX: IVPAF) is responding today to a media report stating that miners in the Democratic Republic of Congo (DRC) received an order on May 26, 2021 that has banned the export of copper and cobalt concentrate from the country.

Ivanhoe Mines confirms that it is aware of the order issued to customs officials by the provincial director of Customs and Excise in the Katanga Province of DRC. Ivanhoe Mines also is aware of a subsequent letter confirming that companies with a derogation letter from the Minister of Mines will be allowed to export concentrates.

A sector wide derogation from the concentrate export prohibition expired on April 12, 2021 and was replaced by a framework allowing the Minister of Mines to grant individual derogations on a case-by-case basis following an application by an interested party.

Ivanhoe Mines’ President and CFO Marna Cloete commented, “The concentrate export ban is not new. However, the rules now recognize that a derogation may be justified for a number of reasons. Kamoa Copper has filed the necessary application materials and we have had constructive discussions with the Minister of Mines on obtaining a derogation for Kamoa-Kakula given current limitations on smelting capacity in-country.”

Ms. Cloete continued, “We fully intend to utilize local smelter capacity to the extent possible. Furthermore, as we announced in March, Ivanhoe Mines, together with our joint venture partner Zijin Mining, is assessing the construction of a smelting complex at Kamoa-Kakula for the production of blister and anode copper. This is all part of our intention to operate responsibly in the DRC for generations to come, and for the benefit of all of our stakeholders, including the Government of DRC who are our 20% partner in Kamoa Copper.”

Commercial Copper Production Commences

On March 26, 2021, Ivanhoe Mines announced the start of copper concentrate production at the Phase 1, 3.8 million-tonne-per-annum (Mtpa) Kamoa-Kakula Mine, several months ahead of schedule.

On May 26, 2021, Ivanhoe Mines senior management met with DRC Government officials as part of the early commencement of production, including His Excellency Félix Tshisekedi, President of the Democratic Republic of the Congo. (L-R): President Kgalema Motlanthe, Former President of South Africa and an Ivanhoe Mines Independent Director; Félix Tshisekedi, President of the Democratic Republic of the Congo; Marna Cloete, Ivanhoe President and CFO.

Kamoa Copper is the DRC operating company of the joint venture between Ivanhoe Mines, Zijin Mining Group, Crystal River and the Government of the DRC that is developing the Kamoa-Kakula Copper Mine.

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