Ivanhoe advances Kamoa dewatering plan, to issue guidance next month

[Ben Graham]

Ivanhoe Mines (TSX: IVN) says it is moving onto the second phase of its Kamoa-Kakula dewatering plan after four new high-capacity, submersible pumps arrived on site and are undergoing installation.

Operations at Kamoa-Kakula, the largest copper producer in Africa, were disrupted earlier this year after seismic activity caused severe flooding of the underground mine, particularly the eastern section. Mining activities were halted for approximately three weeks following the May 18 incident.

In an effort to gradually restore mining operations at Kamo-Kakula, Ivanhoe, as the operator, proceeded with a three-staged dewatering plan. The first stage, which was to stabilize and maintain current water levels with temporary pumps, was completed on June 2, allowing the company to resume mining at Kamoa West.

The second stage requires the installation surface-mounted pumps and new permanent infrastructure to fully dewater the mine. According to the company, two of the new 4.2-megawatt pumps are expected to be operational by month-end, and the remaining two by mid-September. These pumps will be fully submerged until the end of November, when the majority of the dewatering is expected to be completed.

In a note published by BMO Capital Markets on Monday, analyst Andrew Mikitchook said the “update matches previously guided timelines for dewatering Kakula”.

Shares of Ivanhoe Mines gained 0.8% to C$11.80 apiece during the morning trading hours, taking its market capitalization to C$15.9 billion ($11.5 billion).

Guidance reinstated soon

Ivanhoe noted that the western side is expected to be fully dewatered within eight weeks, which would allow the company to regain access to the higher-grade areas relatively quickly. As such, mining grades are expected to improve notably towards year-end.

Also in late 2025, the third stage of dewatering activities will start, involving the use of existing horizontal pumping infrastructure to dewater the remaining areas deep on the eastern side. Additionally, as water levels subside, rehabilitation will commence immediately as required.

Selective mining within the existing workings at Kamoa East could start in the first quarter of 2026, the company said, adding that a life-of-mine plan, to be included in an updated technical report, is also expected around that time.

While the Kamoa-Kakula team continues with the dewatering efforts, Ivanhoe’s management expects to deliver a copper production outlook for 2026 and 2027 in mid-September. Due to the disruptions this year, the company has already revised down its 2025 guidance by 28% to between 370,000-420,000 tonnes of copper in concentrates.

BMO’s Mikitchook previously said in a note that “management’s goal is to return Kamoa-Kakula to similar throughputs as previously planned by 2027.”

The company recently said that mining rates at the western section of Kamoa-Kakula had recovered to about 300,000 tonnes per month, with both concentrators running at 80–85% capacity, as of mid-June.