Ivanhoe Mines Will Meet With DRC Government to Discuss Zijin Deal

Reuters reported that Ivanhoe Mines (TSX:IVN) intends to meet with the government of the Democratic Republic of Congo (DRC) to speak about the sale of 49.5 percent of its Kamoa copper project to China’s Zijin Mining. The deal was announced Tuesday, but the government has said it was unaware of the transaction.

As quoted in the publication:

The government opposes the transaction, according to media reports, because it was not consulted on Zijin Mining Group Co Ltd’s agreement to buy a 49.5 percent stake in Ivanhoe subsidiary Kamoa Holding Ltd, which owns 95 percent of the DRC copper project.

Ivanhoe Chief Executive Lars-Eric Johansson said on a conference call on Thursday to discuss the $412 million Zijin deal that he will lead a group of senior executives to Kinshasa, but was unaware of any required government approval.

The Zijin partnership had been discussed with government and mining officials before final negotiations began, Johansson said, adding that the transaction is not expected to close until late July.

The government holds a 5 percent stake in Kamoa and has been offered a bigger share, Ivanhoe said.

Click here to read the full Reuters article.