June 12 (Reuters) - Ivanhoe Mines ( IVPAF ) said on
Wednesday it had resumed underground mining in part of its
Kakula copper mine in the Democratic Republic of Congo that had
been closed due to seismic activity, but lowered output guidance
for the year.
Mining on the mine's western side resumed on June 7, while
Ivanhoe will start pumping water out of the eastern side in
August, aiming to finish by the year's fourth quarter. It will
also look to open a new section for mining in the eastern part.
The Kakula mine is part of the giant Kamoa-Kakula copper
mining complex.
The Canadian miner said it now expects 370,000 tons and
420,000 tons of copper output from the Kamoa-Kakula mining
complex. It had withdrawn earlier guidance of 520,000 and
580,000 tonnes following seismic activity and floods in May.
The company also withdrew its 2026 target of about 600,000
tonnes of copper production.
"This is a significant setback for the plans at Kamoa-Kakula
and leaves uncertainty about 2026 and beyond production and
whether mining can resume in the previously developed area of
Kakula East," analysts at RBC said in a note.
The disruption is the latest in a series of supply-side
setbacks that has tightened global copper supply, helping to
drive margins for smelters into deeply negative territory.
Co-owner Zijin Mining has not issued any
statements on the mine's status since May, when it said the
tremors had damaged mine roofs and could affect output.
Ivanhoe subsequently disputed Zijin's statement, although it
later withdrew guidance.
Zijin did not immediately respond to an emailed request for
comment about Ivanhoe's latest statement.