Ivanhoe eyes US market for Congo zinc under Project Vault

KINSHASA, Feb 4 (Reuters) - Ivanhoe Mines IVN.TO is in advanced talks with Congo’s state miner Gecamines and Swiss commodities trader Mercuria to channel zinc‑rich concentrate from its giant Kipushi mine to the United States under Washington’s new strategic stockpiling scheme Project Vault, the company said.

The arrangement forms part of a wider deal between the U.S. and the Democratic Republic of Congo on minerals, as Washington ramps up its fight with China for control of Africa’s vast deposits.

Project Vault — a $12 billion supply‑chain security programme launched on Monday by the U.S. and backed by $1.67 billion in private capital and a $10 billion U.S. Export‑Import Bank loan — aims to secure long‑term supplies of strategic metals globally.

It is a key pillar of President Donald Trump's drive to reduce reliance on China by locking in Western access to vital inputs for defence, clean energy and advanced manufacturing.

CRITICAL MINERALS FOR TECH APPLICATIONS

Ivanhoe’s Kipushi zinc mine is forecast to produce 240,000–290,000 metric tons of concentrate this year, including significant quantities of germanium and gallium — minerals the U.S. deems critical for semiconductors, defence and clean‑tech applications.

A deal with Ivanhoe would see Mercuria assign its existing offtake for Kipushi concentrate to Gecamines’ trading arm, while also marketing additional volumes expected from the mine’s ramp‑up in late 2025, Ivanhoe said on Monday.

Gecamines could ultimately handle up to half of Kipushi’s output, including shipments to the United States, Ivanhoe said.

Gecamines and Congo's mines ministry did not immediately respond to requests for comment.

U.S. ACCELERATES MINERALS DEALS IN CONGO

Glencore GLEN.L and U.S.-backed Orion Critical Mineral Consortium (Orion CMC) have announced a similar arrangement to channel cobalt and copper from Congo into the U.S. supply chain under the same government‑backed programme — a sign of accelerating competition among Western buyers for Congolese minerals.

Gecamines and Mercuria also partnered to market copper, cobalt and other critical minerals, part of the U.S.-Congo pact and Kinshasa’s broader push to tighten control over its output and boost transparency and revenues.

Kipushi, which hosts ultra high‑grade zinc as well as silver, copper, germanium and gallium, is one of Congo’s largest polymetallic deposits.