DRC – Africa Finance Corporation (AFC), the continent’s infrastructure solutions provider, has announced closing a US$150 million senior loan with Kamoa Copper to support the expansion of the Kamoa-Kakula Copper Complex in the Democratic Republic of Congo. 

The loan by AFC, which acted as lender and arranger, aligns with the Corporation’s commitment to supporting the local beneficiation of Africa’s abundant mineral resources to unlock the continent’s economic prosperity.

The expansion also includes restarting 178 megawatts (MW) of renewable hydroelectric generation capacity by refurbishing turbine #5 at the Inga II dam. 

Phase 3 is expected to be completed by the end of 2024, making Kamoa-Kakula Africa’s largest copper producer and the third largest globally.

“This is a key milestone in our mission to develop infrastructure ecosystems that help integrate economies and drive economic transformation in Africa,” said Samaila Zubairu, President and CEO of AFC. 

“Copper is one of the critical minerals for the global energy transition, and this mine expansion will not only solidify Africa’s position in the global copper market but contribute to the continent’s path to net zero while creating employment opportunities and generating significant revenue for the DRC.”

Kamoa-Kakula is a world-class, high-grade, low carbon-intensive, underground copper deposit situated on the western edge of the prolific Central African Copperbelt. 

It started production in July 2021 and is currently undergoing its third expansion phase, which consists of a 33% increase in copper production capacity 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.

Kamoa-Kakula is a joint venture between Ivanhoe Mines, Zijin Mining, and the Government of the Democratic Republic of Congo. 

The operation has consistently demonstrated exceptional operational performance and delivered expansions on budget and ahead of schedule.

In addition, its sustainable approach makes it a standout example of responsible mining on the African continent. 91% of its full-time employees are Congolese, and over $600 million has been paid in taxes and royalties to the DRC since the start of operations.

In 2023, Kamoa-Kakula was directly responsible for 4% of the country’s gross domestic product (GDP), and it is also one of the world’s lowest greenhouse gas emitters per tonne of copper produced, according to independent consultants Skarn Associates of London, England, and WSP Group of Montreal, Canada.  

AFC’s involvement in the Kamoa-Kakula project highlights the Corporation’s critical role in catalyzing infrastructure development that drives industrialization and enhances the continent’s global competitiveness.

In late 2023, Kamoa-Kakula became the first industrial user of the Lobito Atlantic Railway Corridor, which stretches from the DRC Copperbelt to the Atlantic port of Lobito in Angola. 

AFC acted as financial adviser to the Trafigura, Mota-Engil, and Vecturis consortium, which was granted a 30-year concession for railway services and logistics. 

Using the Lobito Atlantic Railway Corridor is expected to significantly reduce the logistics costs and carbon emissions intensity of exporting mineral products from the DRC’s Copperbelt.

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