Ivanhoe, Qatar to collaborate on critical minerals mining in Africa

Ivanhoe Mines’ (TSX: IVN) has entered into a memorandum of understanding (MoU) the Qatar’s sovereign wealth fund to further advance the company’s exploration efforts in Africa.

The MoU, signed on Friday, sets out a framework for collaboration to find, develop and sustainably supply the critical minerals essential to the global energy transition, the company said in a statement.

The MoU signing coincided with this week’s visit by the Amir of Qatar, Sheikh Tamim bin Hamad Al-Thani, to the Democratic Republic of the Congo, where he met with President Félix Tshisekedi to discuss bilateral relations between the two countries.

Ivanhoe currently operates the Kamoa-Kakula copper complex, one of the largest in the world, in the African nation, as well as the high-grade Kipushi zinc-copper-germanium-silver mine.

The MoU with the Qatar Investment Authority (QIA) further extends Ivanhoe’s alliance with the Arab nation, which in September announced a $500 million strategic investment into Ivanhoe.

Under the MoU terms, QIA will support Ivanhoe’s management team in its pursuit of existing and new growth projects, such as exploration work underway to develop the Western Forelands exploration project in DRC, including the Makoko district.

“We are excited to build this long-term, world-class alliance as we unlock new frontiers in our hunt for the next generation of great discoveries, which we will sustainably mine together,” executive co-chair Robert Friedland stated in a press release.

“This MoU is a testament of QIA’s commitment to building strategic partnerships with leading suppliers of critical minerals, supporting global efforts to develop new energy infrastructure and power advanced technologies,” added Mohammed Saif Al-Sowaidi, CEO of QIA.

Shares of Ivanhoe Mines rose as much as 5.4% following the announcement. At C$12.64 a share, the company has a market capitalization of C$18 billion ($12.8 billion).