Ivanhoe’s Mark Farren appointed Chief Executive Officer of the Kamoa-Kakula Copper Joint Venture Ivanhoe and Zijin install a stand-alone executive team to take Kamoa-Kakula to commercial production Louis Watum, Ivanhoe’s DRC country manager, appointed
October 8, 2019
Ivanhoe’s Mark Farren appointed Chief Executive Officer
of the Kamoa-Kakula Copper Joint Venture
Ivanhoe and Zijin install a stand-alone executive team to take
Kamoa-Kakula to commercial production
Louis Watum, Ivanhoe’s DRC country manager, appointed
President of the Board of Directors of Kamoa Copper SA
and expands his role
Senior Zijin Chief Operating Officer and three Congolese
nationals strengthen Kamoa-Kakula’s senior management team
to help ensure a successful start-up of commercial production
at the Kakula Copper Mine
Mining veteran Warwick Morley-Jepson appointed as Ivanhoe’s
new Chief Operating Officer
Zijin to increase its shareholding in Ivanhoe Mines to 13.88%
in a private share purchase and sale transaction
with CITIC Metal Africa and Robert Friedland
KOLWEZI, DEMOCRATIC REPUBLIC OF CONGO – Robert Friedland and Yufeng “Miles”
Sun, Co-Chairmen of Ivanhoe Mines (TSX: IVN; OTCQX: IVPAF), announced today that
Mark Farren, formerly Ivanhoe’s Executive Vice President, Operations, has been
appointed as the Chief Executive Officer of the Kamoa-Kakula Copper Joint Venture.
In two concurrent moves to further enhance Ivanhoe’s development and operating
capabilities, Louis Watum, Ivanhoe’s DRC country manager, has been appointed
President of the Board of Directors of Kamoa Copper SA, the DRC operating company
of the joint venture between Ivanhoe Mines, Zijin Mining Group, Crystal River and the
Government of the Democratic Republic of Congo that is developing the Kamoa-Kakula
Project. Mr. Watum’s expanded role includes assisting with infrastructure development.
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South African mining veteran Warwick Morley-Jepson has been appointed as Ivanhoe’s
new Chief Operating Officer, assuming the duties formerly held by Mr. Farren.
“Louis, Mark and Warwick all have extensive experience in the development,
construction and operation of underground mines in the region, and we have the
utmost confidence in their abilities to assemble and lead the joint-venture team that will
construct and operate the stage-one, six million-tonne-per-annum Kakula Copper Mine,
while also advancing development efforts at our Kipushi and Platreef projects and fast-
tracking exploration drilling on our 100%-owned Western Foreland licences,” said Mr.
Friedland.
Joining Mr. Farren on Kamoa-Kakula’s new executive management team will be Dr.
Yong Chen of Zijin Mining, as Chief Operating Officer. Dr. Chen has more than 25 years’
management experience in mining operations, including his most recent role as
Director and General Manager of Xinjiang Ashele Copper Ltd., a large-scale
underground mining and processing complex majority owned by Zijin Mining.
“The executive management team will work closely with Mr. Watum and senior
Congolese management, our government partners and our host communities to help
ensure that the Kakula Mine is built on time and budget, and to the best international
standards,” added Mr. Friedland.
“The structure of the team reflects the strong degree of cooperation between the joint-
venture parties, and we are confident that the individual expertise and leadership
qualities of each member of this executive team will help ensure a successful start-up
of operations at Kakula.”
“This is an important stage of growth for Ivanhoe Mines, and I am honoured to lead the
development of the tier-one Kamoa-Kakula Project at such an exciting time,” said Mr.
Farren. “We are uniquely positioned to build Kakula into one of the world’s greatest
copper mines, and I am excited to be part of the team that moves this project forward to
production.”
The Kamoa-Kakula Copper senior management team also includes Congolese nationals
Ben Munanga – Head of Energy; Teddy Kabongo – Head of Tax; and Dr. Guy Muswil –
Head of Sustainability. As well, Rochelle De Villiers of Ivanhoe Mines and David Li of
Zijin Mining have been appointed as Kamoa-Kakula’s Co-Chief Financial Officers.
The Kamoa-Kakula Copper Project is a joint venture between Ivanhoe Mines (39.6%),
Zijin Mining Group (39.6%), Crystal River Global Limited (0.8%) and the DRC
government (20%). Ivanhoe Mines and Zijin Mining are co-funding development of the
project. Initial copper concentrate production from the Kakula Mine, the first of at least
three mines planned at Kamoa-Kakula, currently is scheduled for the third quarter of
2021.
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Warwick Morley-Jepson appointed as Ivanhoe’s new
Chief Operating Officer
The company has appointed Warwick Morley-Jepson as its new Executive Vice
President and Chief Operating Officer. Mr. Morley-Jepson is a seasoned mining
professional who will assume the duties previously performed by Mr. Farren. He will be
responsible for overseeing the technical and development initiatives that Ivanhoe
currently is pursuing at the Kipushi and Platreef projects. He also will be a key member
of the Ivanhoe team working with Zijin Mining to oversee the development of the
Kamoa-Kakula Project.
Zijin to increase its shareholding in Ivanhoe Mines to 13.88% in a private
share purchase and sale transaction with CITIC Metal Africa and Robert
Friedland
In a related move that follows the implementation of Kamoa-Kakula’s new executive
management team and which reflects the efforts and importance of Zijin Mining in the
ongoing development of Kamoa-Kakula as well as the spirit of genuine strategic
cooperation among Ivanhoe Mines’ largest shareholders, CITIC Metal Africa and Robert
Friedland have agreed to sell 35,752,011 shares (3.0%) and 12,900,271 shares (1.08%) of
their shareholdings, respectively, to Zijin, in a private share purchase and sale
transaction.
After the closing of the transaction, CITIC Metal Africa will own approximately 26.4% of
Ivanhoe’s issued and outstanding shares, Robert Friedland will own approximately
13.2%, and Zijin will own 13.88%. The price per share will be fixed on the day prior to
completion of the transaction at the prevailing one-day volume weighted average price
at that time, but with a floor price of C$3.98 – the price of the recently completed second
strategic investment by CITIC Metal in Ivanhoe Mines.
“This rebalancing share purchase and sale agreement once again proves the high level
of trust and strategic cooperation between Ivanhoe Mines, CITIC Metal and Zijin
Mining,” said Mr. Friedland.
The completion of the transaction remains subject to receipt by Zijin of necessary
recordals and registrations with Chinese government regulatory agencies, as have been
required and obtained in prior transactions. These are expected to be received within
two months, with the completion of the transfers following thereafter and prior to the
end of 2019.
At the closing of the transaction, Zijin and Ivanhoe Mines will enter into an investor
rights agreement that will, among other things, confirm Zijin’s entitlement to one
director, currently its Chairman Chen Jinghe who was elected to the board at Ivanhoe's
AGM held earlier this year. Zijin’s existing standstill agreement also will be amended to
increase Zijin’s maximum allowable shareholding in Ivanhoe Mines to 13.88% from 9.9%
without Ivanhoe board approval. Zijin Mining also will enter into the same reciprocal
lock-up arrangements that currently exist between CITIC Metal and Robert Friedland
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under which each grants the others reciprocal disposition and tag-along rights in the
event of certain proposed sales of shares in the future.
The existing standstill agreements for CITIC Metal and Mr. Friedland are unaffected by
the rebalancing transaction, and each continues to be restricted from acquiring more
than 29.9% and 19.9% of the Ivanhoe Mines' common shares, respectively, until January
8, 2023.
About Mark Farren
Mark Farren has 31 years of experience in building and managing
mines in some of the world’s major mineral fields. Mr. Farren
joined Ivanhoe Mines in June 2014, assuming lead
responsibilities for various engineering and development
activities as Ivanhoe Mines’ Executive Vice President,
Operations. He also previously served a total of 22 years, in
progressively senior roles, in the South African operations of
Johannesburg-based Anglo American Platinum (Amplats).
Mr. Farren’s career with Amplats culminated with his
appointment in 2009 as the group’s Head of Mining. He also has
successfully developed other major greenfield operations in Africa.
About Louis Watum
Louis Watum joined Ivanhoe Mines in December 2014 as
Managing Director of the company’s operations in the DRC. In
March 2015, he was appointed to the additional role of General
Manager, Kamoa Copper SA. He holds lead responsibilities for
Ivanhoe Mines’ mine development activities now underway at the
Kamoa copper discovery and the Kipushi zinc-copper-silver
mine, both in the DRC.
Prior to joining Ivanhoe Mines, between 2010 and 2014, he
successfully led the development and commissioning of Randgold’s Kibali Project
(Randgold’s interest in Kibali subsequently sold to Barrick Gold), which followed his
work on the launch of Moto Gold Mines’ Moto Project from 2006 to 2009. He was the
Operations Manager at the Yatela Gold Mine in Mali from 2001 to 2005.
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About Yong Chen
Dr. Yong Chen has been working in the mining industry for more
than 25 years. Prior to his current appointment, Dr. Chen was
Board Director and General Manager of Xinjiang Ashele Copper
Ltd., a large-scale deep underground mining and processing
complex majority owned by Zijin Mining Group. Prior to joining
Zijin in 2012, Dr. Chen held increasingly senior managerial roles
with China Western Mining Co., Ltd. for 16 years.
Dr. Chen is a Senior Engineer of Geosciences, and holds a Ph.D.
in Resources Administration from the China University of
Geosciences.
About Warwick Morley-Jepson
Warwick Morley-Jepson is an experienced mining professional
with a track record of increasing responsibility over a 37-year
career in mining. He has held executive and management
positions in underground and open-pit gold and platinum
mining operations, and has undertaken several mine
development projects at a senior management level, ultimately
holding executive positions in several public, senior global
mining companies, including Kinross Gold Corporation.
Mr. Morley-Jepson has spent significant time over the last twenty years working in West
and North Africa (Mali, Ghana, Mauritania and Côte d'Ivoire), East Africa (Tanzania),
Russia, Kazakhstan, Brazil, USA and Chile.
About the Kamoa-Kakula Project
The Kamoa-Kakula Project is approximately 25 kilometres west of the mining
centre of Kolwezi in the DRC. It is a joint venture between Ivanhoe Mines (39.6%), Zijin
Mining Group (39.6%), Crystal River Global Limited (0.8%) and the DRC government
(20%). Ivanhoe Mines and Zijin Mining are co-funding development of the Kamoa-Kakula
Copper Project.
Based on existing mineral resources, Kamoa-Kakula has been independently ranked as
the world’s fourth-largest copper deposit and Kamoa-Kakula’s copper grades are the
highest, by a wide margin, of the world’s top 10 copper deposits.
Kamoa-Kakula is unique as it combines ultra-high copper grades in thick, shallow and
relatively flat-lying deposits ─ allowing for large-scale, highly-productive, mechanized
underground mining operations. Kakula, the first of multiple planned mines expected to
be placed into production at Kamoa-Kakula, is projected to have an average grade of
6.8% copper over the initial five years of operations, and 6.4% copper over the first 10
years − grades that are orders of magnitude higher than the majority of the world’s
other major copper mines.
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Qualified Person
Scientific and technical information in this news release has been reviewed and
approved by Stephen Torr, P.Geo., Ivanhoe Mines’ Vice President, Project Geology and
Evaluation, a Qualified Person under the terms of National Instrument 43-101. Mr. Torr is
not independent of Ivanhoe Mines. Mr. Torr has verified the technical data disclosed in
this news release.
About Ivanhoe Mines
Ivanhoe Mines is a Canadian mining company focused on advancing its three principal
projects in Southern Africa: the development of new mines at the Kamoa-Kakula copper
discoveries in the Democratic Republic of Congo (DRC) and the Platreef palladium-
platinum-nickel-copper-gold discovery in South Africa; and the extensive
redevelopment and upgrading of the historic Kipushi zinc-copper-germanium-silver
mine, also in the DRC. Ivanhoe also is exploring for new copper discoveries on its
wholly-owned Western Foreland exploration licences in the DRC, near the Kamoa-
Kakula Project.
Information contacts
Investors
Bill Trenaman +1.604.331.9834
Media
Kimberly Lim +1.778.996.8510
Cautionary statement on forward-looking information
Certain statements in this news release constitute “forward-looking statements” or “forward-looking
information” within the meaning of applicable securities laws. Such statements and information involve
known and unknown risks, uncertainties and other factors that may cause the actual results,
performance or achievements of the company, its projects, or industry results, to be materially different
from any future results, performance or achievements expressed or implied by such forward-looking
statements or information. Such statements can be identified by the use of words such as “may”,
“would”, “could”, “will”, “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”,
“forecast”, “predict” and other similar terminology, or state that certain actions, events or results “may”,
“could”, “would”, “might” or “will” be taken, occur or be achieved.
Forward-looking statements in this release include, but are not limited to: statements regarding
executive management team will work closely with Mr. Watum and senior Congolese management, our
government partners and our host communities to help ensure that the Kakula Mine is built on time and
budget, and to the best international standards; (2) statements regarding initial copper concentrate
production from the Kakula Mine, the first of at least three mines planned at Kamoa-Kakula, currently is
scheduled for the third quarter of 2021; (3) statements that Kakula is the first of multiple planned mines
expected to be placed into production at Kamoa-Kakula; and, (3) Kakula is projected to have an
average grade of 6.8% copper over the initial five years of operations, and 6.4% copper over the first 10
years.
Forward-looking statements and information involve significant risks and uncertainties, should not be
read as guarantees of future performance or results and will not necessarily be accurate indicators of
whether or not such results will be achieved. A number of factors could cause actual results to differ
materially from the results discussed in the forward-looking statements or information, including, but not
limited to, the factors discussed under “Risk Factors” and elsewhere in the company’s MD&A, as well
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as the inability to obtain regulatory approvals in a timely manner; the potential for unknown or
unexpected events to cause contractual conditions to not be satisfied; unexpected changes in laws,
rules or regulations, or their enforcement by applicable authorities; the failure of parties to contracts
with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the
failure of exploration programs or studies to deliver anticipated results or results that would justify and
support continued exploration, studies, development or operations.
Although the forward-looking statements contained in this news release are based upon what
management of the company believes are reasonable assumptions, the company cannot assure
investors that actual results will be consistent with these forward-looking statements. These forward-
looking statements are made as of the date of this news release and are expressly qualified in their
entirety by this cautionary statement. Subject to applicable securities laws, the company does not
assume any obligation to update or revise the forward-looking statements contained herein to reflect
events or circumstances occurring after the date of this news release.
The company’s actual results could differ materially from those anticipated in these forward-looking
statements as a result of the factors set forth in the “Risk Factors” section and elsewhere in the
company’s MD&A for the year ended December 31, 2018 and its Annual Information Form.