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Ivanhoe Mines announces restart of underground mining

Mine Development & Operations

June 11, 2025

Ivanhoe Mines announces restart of underground mining

operations on western side of Kakula Mine on June 7, 2025

■

Underground water levels in Kakula Mine stabilized;

dewatering to commence in Q3 2025

■

Kamoa-Kakula revises 2025 production guidance to between

370,000 and 420,000 tonnes of copper

■

Smelter start-up expected to commence in September 2025,

with first anode anticipated in October 2025

■

Ivanhoe Mines to host a conference call for investors before

market open on June 12, 2025

KOLWEZI, DEMOCRATIC REPUBLIC OF THE CONGO – Ivanhoe Mines (TSX: IVN;

OTCQX: IVPAF) Executive Co-Chairman Robert Friedland and President & Chief

Executive Officer Marna Cloete announce today an update on operational activities

at the Kamoa-Kakula Copper Complex, including preliminary geotechnical findings

relating to underground seismic activity experienced at the Kakula Mine, as first

announced on May 20, 2025.

Underground mining on the western side of the Kakula Mine has resumed in a safe

and conservative manner, with equipment and mining crews returning

underground on June 7, 2025. The short-term mine plan for the western side of

Kakula has been updated to include recommendations from the preliminary

findings.

Mining activities in the eastern side of the Kakula Mine are expected to start

imminently, with activities solely focused on developing access drives to a new

mining area east of the existing mine workings. Development to the new mining

area will be isolated from the dewatering activities on the same side of the mine.

As announced on June 2, 2025, additional underground pumping capacity was

installed at the Kakula Mine, stabilizing underground water levels. The frequency

of seismic activity has decreased since first reported on May 18, 2025. Dewatering

the eastern side of the Kakula Mine is expected to commence in August 2025 and

be complete during the fourth quarter.

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Recommendations from the preliminary geotechnical findings from world-leading

experts have been included in the short-term mine plans for the Kakula Mine to

ensure a safe restart of underground operations. Concurrently, medium- and long-

term mine plans are under review by Kamoa-Kakula management, together with

technical consultants.

The Phase 1 and 2 concentrators continue to operate at approximately 50% of their

combined operating capacity, processing ore from surface stockpiles. The

processing rate of the concentrators will ramp up throughout the remainder of

2025, as mining on the western side of the Kakula Mine increases, supplemented

by feed from ore stockpiles. Mining operations at the Kamoa underground mine,

as well as ore processing at the adjacent Phase 3 concentrator, continue to

outperform.

With the necessary copper concentrate expected to be available, the on-site

copper smelter is anticipated to start up in September, with first anode expected in

October 2025.

Ivanhoe Mines Executive Co-Chair, Robert Friedland commented:

“We are thankful and deeply appreciate our team’s swift response to stabilize

underground water levels in the Kakula Mine and resume mining on the western

side. The team has quickly secured the critical equipment needed to safely

dewater the entirety of the mine, while preparing to access a new high-grade

mining area in the east.

“While it’s still too early to outline our detailed plans for 2026 and 2027, the future

remains bright across the Kamoa-Kakula Copper Complex and adjacent Western

Forelands Exploration Project. Kamoa-Kakula is, and will continue to be, a world-

class Tier One operation, with decades ahead of us as one of the world’s leading

copper producers.”

President & Chief Executive Officer, Marna Cloete, commented:

“We are working tirelessly to safely and systematically restore full operations at

the Kakula Mine. Safety has always been, and will always remain, our highest

priority. We want to extend our sincere thanks to the mining crews, the

engineering teams and our long-term contractors for their extraordinary efforts in

restoring pumping capacity and restarting operations, all without any lost time

injuries.

“The resilience of our team and the strength of our operations reflect the

extraordinary nature of this world-class copper district—and the future it holds for

generations to come.”

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Figure 1. Outline of the Kakula and Kakula West orebody, overlaid with the

underground development since mining commenced in 2021. A significant

portion of the original Kakula deposit remains unmined as of May 2025.

Notes: Existing underground development as at May 2025. Illustration is based on the 2023 Kamoa-Kakula

IDP showing the estimated average grade of each vertical stack of blocks above a 2% total copper cut -off.

A minimum 3-metre thickness is applied.

Underground water levels in Kakula Mine have stabilized; underground

mining recommences on the western side of Kakula

Although water inflow rates into the Kakula Mine modestly increased following the

initial seismic activity, they have since stabilized at approximately 4,000 litres per

second. With existing underground pumping infrastructure impacted by the

seismic activity, a total of approximately 4,400 litres per second of additional

underground pumping capacity was installed, stabilizing underground water

levels. The new pump stations feed into the existing central pumping

infrastructure, where the water is then pumped to surface at four locations near

the bottom of the north and south twin declines, as shown in Figure 2.

With water levels stabilized, mining in the western side of the Kakula Mine has

restarted. Mobile equipment and mining crews, which were evacuated from the

mine on May 18, 2025, are returning underground, with the first blast having

occurred on June 7, 2025. Short-term mine plans have been updated to include the

recommendations from the preliminary geotechnical findings. Kamoa-Kakula’s

mining crews aim to ramp up mining from the western side of the Kakula Mine to

approximately 300,000 tonnes per month (3.6 million tonnes per year on an

annualized basis) during the second half of 2025, subject to underground

conditions.

For the remainder of 2025, Kakula’s underground mining crews will focus on three

activities: ramping up mining on the western side of the Kakula Mine; developing a

new mining area on the eastern side of the Kakula Mine; and ramping up

production from the Kamoa mining area.

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Figure 2: Overview of Kakula Mine’s existing underground infrastructure,

showing current pumping rates, future pumping capacity and depth of mine

workings.

The additional mining crews deployed to the Kamoa mining area, approximately 10

kilometres north of Kakula, will assist the existing teams with underground

development, as well as decline development from the construction of a new box

cut planned at the Kansoko Mine. The new box cut will enable increased

production from Kansoko, providing an additional source of ore for the Phase 1

and Phase 2 concentrators.

Mining crews to focus on new mining area in eastern side of Kakula;

development to commence imminently, isolated from dewatering

activities

Mining in the eastern side of the Kakula Mine will follow a new mine plan,

prioritizing development to a new mining area further east, beyond the existing

mine workings. The new mining area will be separated from the existing mine

workings by a barrier pillar. The barrier pillar is designed to protect the new

mining area from any potential spread of geotechnical instability from the existing

mining area.

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Mining crews will construct two new access drives to the new mining area, which

are expected to start imminently. The new access drives will be developed

simultaneously, advancing east from existing underground infrastructure, as

shown in Figure 2. Development to the new mining area is expected to be

conducted in both ore and waste and be completed in the second quarter of 2026.

The new development drives will be isolated from the mine workings that being

dewatered and will advance independently of dewatering activities.

Following the completion of dewatering activities on the eastern side of Kakula, a

physical geotechnical inspection of the mine's existing workings will be

conducted, concluding the full assessment by the geotechnical experts. The

results of this assessment will determine the approach and extent of mining in this

area.

As shown in Figure 2, the mine workings are at their deepest on the eastern side

of the mine and therefore underground flooding is predominantly concentrated

around this area. The Kamoa-Kakula engineering team has a two-stage plan to

dewater the entire Kakula Mine.

Stage One involves the installation of additional temporary underground pumping

infrastructure to stabilize and maintain current water levels. Stage One was

completed as announced on June 2, 2025.

Stage Two involves the installation of high-capacity, submersible pumps, and new

permanent infrastructure to fully dewater the entire Kakula Mine from surface.

Kamoa Copper has ordered five high-capacity pumps, each rated at 650 litres per

second. Additional pumps will also be ordered as part of the long-term pumping

infrastructure plan. These pumps will be deployed in pairs down existing shaft

infrastructure, accessing the deepest sections of the Kakula Mine as shown in

Figure 2. Dewatering activities are expected to commence in August 2025.

Engineering crews will refurbish underground pumping and ventilation

infrastructure, as well as complete geotechnical assessments, as water levels

subside. Dewatering of the entire Kakula Mine is expected to be complete during

the fourth quarter.

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Looking south: The two existing shaft locations where the “Stage Two”

dewatering surface pumping infrastructure will be installed to dewater the

eastern side of the Kakula Mine. Water will be discharged into existing

surface water channels (right of picture).

Looking north with the Phase 1 and 2 concentrators in the background: One

of the two shaft locations shown in the foreground that will be used for the

“Stage Two” dewatering of the deepest area of the Kakula Mine.

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A high-capacity submersible pump, similar to those being procured by

Kamoa Copper for dewatering the Kakula Mine, prior to being lowered down

a shaft at the Luansha Copper Mine, Zambia in September 2024. Photo

source: CNMC (China Nonferrous Metal Mining Group Co., Ltd).

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Preliminary geotechnical findings on the cause of recent seismic

activity

Two prominent, independent geotechnical engineering organizations, Beck

Engineering of New South Wales, Australia (Beck Engineering) and Open House

Management Solutions of Potchefstroom, South Africa (Open House), were

engaged and mobilized to Kamoa-Kakula shortly after seismic activity was first

detected on May 18, 2025. Both consulting engineering firms have been working

diligently with Kamoa-Kakula’s engineering team, with support from Ivanhoe

Mines.

Preliminary findings indicate that the seismic activity originated in an area within

the eastern side of the Kakula Mine with a mature percentage of extraction.

Current thinking postulates that blocks of ore, earmarked for secondary

extraction, started to yield in a cascading fashion, which resulted in stress

redistribution onto regional pillars. As a consequence, the regional pillars became

over-stressed and started to yield. The backfill, placed in mined-out stopes, was

not capable of preventing the stress redistribution onto regional support pillars,

but may have been a mitigant. The possibility that adverse regional geological

features may have exacerbated the yielding of regional pillars cannot be excluded

at this time. Pillars are sections of untouched ore or rock left in place to support

the roof of the mine, while stopes are mined-out areas. Backfill is the process

whereby mined-out stopes are filled with a mixture of concentrator tailings and

cement, which cures to achieve a targeted strength.

The geotechnical assessment has not yet been finalized as it relies on physical

access to the eastern section of the Kakula Mine once dewatering is completed.

The preliminary findings recommend modifying the short-term mine plans to

increase pillar widths for additional structural support. The findings also advise

changes to the mining sequence to improve stress distribution and overall

stability. Furthermore, enhanced geotechnical monitoring will be installed

throughout the mine.

Kamoa-Kakula’s management, together with Beck Engineering, Open House and

other technical consultants, are evaluating any changes to the short-, medium-

and long-term mine plans in light of these preliminary geotechnical findings.

Work on an updated life-of-mine integrated development plan, which was

underway before the seismic activity occurred, has been paused until Ivanhoe

Mines’ engineering team and its panel of technical experts have reviewed and

agreed on any updated assumptions. Ivanhoe Mines will provide a timing update

on the delivery of an updated IDP once work recommences.