AFC Concludes $150 Million Loan for Kamoa-Kakula Copper Expansion in DRC

Kamoa-Kakula is a renowned underground copper deposit located in the Central African Copperbelt, known for its high-grade, low carbon-intensive operations.

Africa Finance Corporation (AFC) has successfully concluded a $150 million senior loan agreement with Kamoa Copper to support the expansion of the Kamoa-Kakula Copper Complex in the Democratic Republic of Congo (DRC). Acting as both lender and arranger, AFC's financing aligns with its mission to promote local beneficiation of Africa's mineral resources, aiming to foster economic growth across the continent.

Kamoa-Kakula is a renowned underground copper deposit located in the Central African Copperbelt, known for its high-grade, low carbon-intensive operations. Commencing production in July 2021, the complex is currently in its third expansion phase. This phase includes a 33% increase in copper production capacity, raising it to over 600,000 tonnes per annum (tpa), and the construction of Africa's largest copper smelter with a capacity of 500,000 tpa of 99% pure copper anodes. Additionally, the expansion involves the rehabilitation of turbine #5 at the Inga II dam, which will add 178 megawatts (MW) of renewable hydroelectric generation capacity. Phase 3 is slated for completion by the end of 2024, positioning Kamoa-Kakula as Africa's largest copper producer and the third largest globally.

Beyond enhancing Africa's footprint in the global copper market, this expansion underscores the continent's commitment to achieving net zero emissions while generating employment opportunities. Operated as a joint venture between Ivanhoe Mines, Zijin Mining, and the DRC government, Kamoa-Kakula has demonstrated exceptional operational performance, delivering expansions on schedule and within budget. Notably, its sustainable practices have set a benchmark for responsible mining in Africa, with 91% of its workforce comprising Congolese nationals and over $600 million paid in taxes and royalties to the DRC since inception.

"This milestone reinforces AFC's role in developing infrastructure ecosystems that integrate economies and drive economic transformation in Africa," remarked Samaila Zubairu, President and CEO of AFC. "Copper is crucial for global energy transition, and our support for Kamoa-Kakula will bolster Africa's competitive edge in the copper market, while contributing to environmental goals and economic prosperity in the DRC."

AFC's involvement extends beyond financing; in late 2023, Kamoa-Kakula became the inaugural industrial user of the Lobito Atlantic Railway Corridor, facilitating mineral exports from the DRC's Copperbelt to the Atlantic port of Lobito in Angola. AFC served as financial adviser to the consortium managing the railway, aiming to reduce logistics costs and carbon emissions associated with mineral exports.

This initiative highlights AFC's pivotal role in catalyzing infrastructure development, industrialization, and enhancing Africa's global competitiveness.