The Revival of KICO Mining Operations in Kipushi: A New Chapter for the Mining Industry in DRC

On November 17, 2024, President Felix Tshisekedi marked a historic turning point for the mining industry in the Democratic Republic of Congo (DRC) by officially relaunching zinc production at the Kipushi Corporation (KICO) mine. This momentous event, which took place in Kipushi in the Haut-Katanga province, represents a crucial milestone in the strategy to diversify and strengthen the Congolese mining sector.

The KICO mine, located 30 km from Lubumbashi, had been dormant since 1993. Its reopening is the result of a joint venture between Gécamines (38%) and Ivanhoe Mines (62%). What makes this mine particularly remarkable is its exceptionally high zinc content, averaging 36%, making it the highest-grade zinc mine in the world.

With an impressive monthly production capacity of 45,000 tonnes, KICO aims to achieve an annual production of 540,000 tonnes of zinc. The ambitions don't stop there, as the company plans to further increase its production starting from the first quarter of 2025.

The Minister of Mines, Kizito Pakabomba, emphasized the significance of this revival within the framework of the government's vision to diversify the mining economy and improve the business climate in the DRC. He declared that "the revival of this plant constitutes a national victory."

A particularly interesting aspect of this project is the perspective of evolving shareholding. According to the chairman of Gécamines' board of directors, "In 12 years, the Congolese state will become the majority shareholder of the KICO mine with an 80% stake compared to the current 32%." This progression demonstrates the government's commitment to strengthening national control over the country's strategic resources.

Beyond its economic impact, KICO demonstrates a strong commitment to local development. The company has been funding scholarships for Kipushi students for six years, with a total investment of 100,000 USD. Additionally, the company leads major social initiatives, including free drinking water distribution, fish farming projects, and modern irrigation systems for food crops.

KICO's mine reopening is part of a broader initiative to revitalize and modernize the Congolese mining sector. It exemplifies the government's determination to maximize the economic and social benefits derived from the country's natural resource exploitation.

As a law firm specializing in mining law, we closely monitor these developments. KICO's revival raises significant legal considerations, particularly regarding compliance with the revised 2018 Mining Code, environmental protection measures, and fulfillment of social obligations. Our team stands ready to guide industry stakeholders through this evolving mining landscape.

The reopening of the KICO mine represents not only a major economic opportunity but also a legal and regulatory challenge. It demonstrates the complexity and dynamism of the Congolese mining sector, where legal expertise plays a crucial role in ensuring project success and sustainability. This development marks another significant step in the country's journey toward responsible resource management and sustainable development.