Huatong aluminium plant in Angola starts up with 120,000 t/yr first phase

Aluminium

Huatong aluminium plant in Angola has started production with a 120,000 t/yr first-phase line. Huatong aluminium plant in Angola anchors a five-phase build with $1.6bn total planned investment. Therefore, the project signals a decisive shift toward overseas primary aluminium capacity.

The project sits in the Dande Free Trade Zone in Angola’s Bengo province. The company plans five phases to scale output beyond the initial line. Meanwhile, the 18-month build highlights fast execution under China–Angola industrial cooperation.

Huatong aluminium plant in Angola also fits the company’s downstream footprint in Africa. Huatong already runs wire and cable operations in Tanzania and Cameroon. As a result, the Angola smelter can strengthen margins through internal metal supply.

Why Angola matters for China’s aluminium strategy

China’s domestic primary aluminium cap pushes producers to expand abroad. China also removed export tax rebates for some fabricated aluminium products. However, overseas smelting can protect market access and stabilize cash flows.

Indonesia has already attracted large Chinese aluminium investments and new projects. Angola now joins that trend with a landmark-scale industrial site. Therefore, Africa could become a new node in China-linked aluminium supply chains.

What this means for African metal supply and downstream demand

Local primary metal can shorten lead times for cables, construction, and grid upgrades. It can also support regional fabrication if reliable power and logistics follow. Meanwhile, execution risk remains, because smelting economics hinge on electricity and stable inputs.

The Metalnomist Commentary

This start-up looks like a strategic hedge against policy ceilings and trade friction. However, Angola must sustain power reliability to keep costs competitive. If it succeeds, the project can reshape African aluminium flows.

Pensana Angola Refinery Construction Begins at $325 Million Longonjo Project

Pensana Angola

Pensana Angola refinery construction commenced at the Longonjo rare earth project, marking a significant milestone in diversifying global critical minerals supply chains. The UK-based company's Pensana Angola refinery represents a $325 million investment targeting 20,000 tonnes annually of mixed rare earth carbonate (MREC) production, directly challenging China's dominance in rare earth processing and magnet material supply chains.

Comprehensive Infrastructure Development Supports Integrated Operations

Pensana Angola refinery infrastructure encompasses extensive facilities including open pit mining, concentrator and recovery plants, tailings storage, and bulk power supply systems. The integrated operation will extract, concentrate, calcine, and chemically refine free dig material to produce MREC for export through Lobito port. Construction and commissioning timelines span approximately 22 months with potential second phase expansion to 40,000 tonnes annually.

Meanwhile, the expanded capacity would represent roughly 5% of global production suitable for permanent magnet conversion in electric vehicles and offshore wind applications. Industry projections indicate neodymium-praseodymium (NdPr) metal demand growth of 7.5% compound annual rate over the next decade. This growth trajectory reflects accelerating clean energy transitions and automotive electrification requiring reliable rare earth supplies outside Chinese control.

Strategic Financing Structure Ensures Project Viability

However, Pensana secured comprehensive financing totaling $268 million through diversified international and regional partners. The Africa Finance Corporation approved $81.2 million within a $160 million syndicated loan facility alongside South Africa's Absa Bank in March. Angola's sovereign wealth fund FSDEA provided $25 million construction investment plus previous $15 million bridging loans and $38 million equity/convertible loan arrangements.

Therefore, the project operates through Pensana's 84% subsidiary Ozango Minerais, with FSDEA holding 10% ownership and other investors comprising the remainder. This ownership structure demonstrates successful public-private partnership models for critical minerals development in Africa. The sovereign wealth fund participation ensures Angolan government alignment with project success and local economic benefits.

Downstream Integration Targets European Market Penetration

Furthermore, Pensana established preliminary agreements for 100% of stage 1 production while engaging major automakers including JLR, Volvo, Mercedes, Ford, BMW, Tesla, and Stellantis for magnet supply chain partnerships. The company plans integrated downstream operations with UK-based separation plants at Saltend Chemicals Park producing 12,500 tonnes rare earth oxide and 4,400 tonnes NdPr oxide annually.

As a result, the proposed Yorkshire Energy Park metallization facility would generate 4,000 tonnes NdPr alloy annually, supporting European electric vehicle and renewable energy sectors. Pensana explores additional magnet manufacturing partnerships with Japanese companies, creating comprehensive rare earth value chains from Angolan mining through European processing and magnet production.

The Metalnomist Commentary

Pensana's Angola refinery construction represents a strategic breakthrough in Western efforts to establish alternative rare earth supply chains independent of Chinese dominance, particularly crucial as global demand for permanent magnet materials accelerates through clean energy transitions. The integrated approach from African mining through European processing demonstrates how allied nations can collaborate to secure critical minerals access while supporting local economic development in resource-rich regions.

Angola’s Lobito Port Sends First Copper Shipment from DRC to the U.S.

Angola’s Lobito port has dispatched its inaugural shipment of copper from the Democratic Republic of the Congo (DRC) to the United States this week, marking a significant milestone for the Lobito Atlantic Railway (LAR). This shipment follows earlier exports to ports in Europe and Southeast Asia since LAR took control of the concession in January, global trading firm Trafigura, a joint venture partner in the LAR, announced today.

The cargo of copper cathodes, destined for Baltimore, left Kolwezi— the DRC’s copper mining hub— and arrived in Lobito on August 19, just six days after being dispatched by train via the LAR. This efficient transit time highlights the strategic potential of this western route for transporting minerals and metals from the resource-rich Congolese copperbelt, Trafigura noted.

The LAR, a 1,300-kilometer trading corridor, connects the Atlantic coast of Angola with Africa’s copperbelt, a region abundant in copper and cobalt reserves. This new route offers a vital alternative to the previously underdeveloped road networks, facilitating more reliable access to global markets for these essential minerals.

The Lobito railway is the product of a $450 million joint venture involving Trafigura, Portuguese infrastructure firm Mota-Engil, and South African rail operator Vecturis. While this development represents a significant step forward, some traders have raised concerns about the long-term viability of the route, citing challenges related to maintenance and the port’s capacity to handle large volumes of freight.

Trafigura has been exporting copper and cobalt from the DRC to ports on the Indian Ocean, such as Durban in South Africa and Beira in Mozambique, but the successful use of the Lobito route to reach the Atlantic marks a new chapter in the company's logistical capabilities.

Ferroglobe Silicon Shipments Fall as European Plants Face Import Pressure

Ferroglobe

Ferroglobe silicon shipments fell in the first quarter after the company suspended production across its European silicon metal plants in October. The decline shows how weak demand and low-priced imports are reshaping Europe’s silicon metal market.

Ferroglobe silicon shipments dropped by 15.9% year on year to 30,533t in January-March. The company later restarted one of two furnaces at its Anglefort plant in France to maintain an EU operating presence.

Ferroglobe silicon shipments remain under pressure because European production costs are still struggling to compete against lower-cost third-country imports. The company warned that the current market structure is no longer viable during a prolonged period of depressed demand.

The issue is strategically important because silicon metal supports aluminium alloys, silicones, solar materials, semiconductors and industrial chemicals. If European smelting capacity continues to close, the region’s downstream industries will become more dependent on imported feedstock.

European Silicon Metal Faces Low-Cost Import Pressure

Ferroglobe said the European silicon metal market remains under pressure from China and Angola. Angola has emerged as a faster-growing supplier into the EU, increasing its market share during the first two months of 2026.

Angola supplied 993t of silicon metal to the EU in February, up by around two-thirds from a year earlier. Its EU market share more than doubled to 3.3% in January-February from 1.5% a year earlier.

This matters because even modest import share gains can influence pricing when demand is weak. European producers with higher energy and operating costs have limited room to absorb lower selling prices.

Ferroglobe has called for the EU to introduce anti-dumping duties on certain third-country suppliers selling at low prices into the bloc. The company made the request after the European Commission excluded silicon metal from last year’s safeguard investigation.

The policy question is now becoming more urgent. Europe wants strategic materials security, but it also needs trade tools that keep domestic production viable when imports undercut regional cost structures.

Without stronger protection or demand recovery, European silicon metal output could remain constrained. That would weaken the region’s ability to support aluminium, chemicals, solar and advanced manufacturing supply chains from local feedstock.

Ferro-Alloy Sales Offset Silicon Weakness

Ferroglobe’s broader first-quarter performance was supported by stronger silicon-based and manganese-based alloy shipments. This helped offset weaker silicon metal volumes.

Shipments of silicon-based alloys rose by 41.6% year on year to 60,674t. The increase was driven by stronger US demand for ferro-silicon.

However, average selling prices for silicon-based alloys fell by 4.9% to $2,016/t. Competitive conditions in the US and South Africa limited pricing power despite stronger volumes.

Manganese-based alloy sales also improved sharply. Shipments rose by 27.5% to 85,743t, supported by recently implemented safeguard measures.

The average selling price for manganese-based alloys increased by 12.8% to $1,250/t because of higher European prices. This shows how trade measures can directly support pricing when regional supply protection is in place.

Ferroglobe’s total sales rose by 13.2% year on year to $347.7mn. The increase came from higher silicon-based and manganese-based alloy volumes, along with stronger manganese alloy pricing.

Adjusted earnings before interest, taxes, depreciation and amortisation increased by 112.5% to $3.3mn. The improvement was meaningful, but margins remain thin for a company operating in volatile alloy and silicon markets.

The company is also considering reopening operations in Venezuela. Those assets are close to the US market and could benefit from low-cost energy, raw materials and favourable logistics.

That strategy reflects the changing economics of ferro-alloy and silicon production. Energy cost, trade access, import protection and proximity to customers are becoming more important than legacy European capacity alone.

The Metalnomist Commentary

Ferroglobe’s results show that Europe’s silicon metal problem is not only weak demand; it is structural cost exposure against lower-priced imports. If the EU wants domestic critical industrial material capacity, silicon metal may need the same policy seriousness now being applied to batteries, magnets and semiconductors.

ReElement and Pensana Secure Rare Earth Partnership

ReElement Technologies

Strategic REE Offtake Agreement

US-based ReElement Technologies and UK mine developer Pensana have signed an offtake agreement for rare earth element (REE) supply. The deal covers up to 20,000 t/yr of mixed rare earth carbonate (MREC) from Pensana’s Longonjo mine in Angola, over five years. The agreement will integrate ReElement’s refining platform to produce ultra-pure separated rare earth oxides for advanced applications.

Longonjo Mine Development and Global Reach

Pensana has invested over $70mn in the Longonjo project, which contains 139,457t of neodymium-praseodymium oxide. The mine will be developed in two phases, each targeting 20,000 t/yr of MREC output. With this offtake agreement, Pensana has secured buyers for its entire planned production, including prior commitments to Toyota Tsusho. Both companies will leverage the Lobito Corridor in Angola to reduce logistics costs and enhance global market access.

The Metalnomist Commentary

This agreement highlights how Western firms are securing critical rare earth supply chains outside China. By linking Longonjo’s resources with ReElement’s refining capabilities, the partnership strengthens diversification efforts in rare earth processing. The use of Angola’s Lobito Corridor also underscores the importance of logistics infrastructure in securing reliable global exports.

Lobito Corridor Copper and Cobalt Shipment Signals a New Export Route for the DRC

Entreprise Generale du Cobalt

The Lobito corridor copper and cobalt shipment marks a strategic milestone for the Democratic Republic of Congo. Entreprise Generale du Cobalt and Trafigura agreed the first delivery of copper and cobalt to international markets using the Lobito Atlantic Railway. Initial cargoes will go to customers in the United States. As a result, the Lobito corridor copper and cobalt shipment strengthens the US-DRC minerals partnership. 

This matters because the shipment is tied to traceable artisanal cobalt. EGC reported production of its first 1,000t of traceable artisanal cobalt in November. Trafigura already markets cobalt supplied by EGC under an existing agreement. Therefore, the Lobito corridor copper and cobalt shipment is not only a logistics story. It is also a supply-chain transparency story. 

The route itself is strategically important. The Lobito Atlantic Railway offers the shortest path from Kolwezi to an Atlantic port. Inland transit times can fall to about seven days. Consequently, DRC critical minerals exports could become faster and more visible to international buyers. 

Traceable Artisanal Cobalt Gives the Corridor More Strategic Value

Traceable artisanal cobalt gives this shipment a different significance from a normal export cargo. EGC is mandated by the Congolese state to buy cobalt from artisanal producers. That gives the company a central role in formalising part of the country’s cobalt trade. As a result, the Lobito corridor copper and cobalt shipment connects logistics reform with artisanal sector reform. 

Trafigura’s role also matters. The trader signed a five-year supply agreement with EGC in 2020. That deal included funding for controlled artisanal mining zones, ore buying stations, and traceability systems aligned with OECD standards. Therefore, this first shipment reflects years of work on controlled sourcing rather than a one-off transaction. 

The wider objective is clear. The partnership aims to formalise artisanal mining, improve transparency, and eliminate child labour. Those goals matter to western buyers seeking more credible cobalt supply. Meanwhile, the new route may make traceable material more commercially attractive by improving export efficiency. 

DRC Critical Minerals Exports Gain a Faster Atlantic Route

DRC critical minerals exports have long faced costly and slow logistics. The Lobito corridor changes that equation by linking the Copperbelt more directly to the Atlantic. The railway runs from Lobito in Angola to the DRC border, with an extension into the Copperbelt. As a result, the Lobito corridor copper and cobalt shipment may become a model for wider export diversification. 

The infrastructure backing is also important. The Lar consortium recently secured $753mn in debt financing to support rehabilitation and expansion. That level of support shows that the route is being treated as a strategic trade corridor, not just a regional rail asset. Therefore, DRC critical minerals exports could gain a more durable logistics platform. 

This development also aligns with broader western policy. Initial cargoes are heading to US customers under the US-DRC strategic partnership on critical minerals. That makes the corridor part of a bigger effort to diversify metal flows away from more concentrated supply routes. Consequently, the Lobito corridor copper and cobalt shipment carries geopolitical meaning as well as commercial value. 

The Metalnomist Commentary

This shipment matters because it brings together three themes at once: traceability, logistics, and geopolitics. The DRC is not only trying to export more cobalt and copper. It is trying to export them through routes and systems that western buyers can trust. If Lobito keeps scaling, it could become one of the most important critical minerals corridors outside the traditional China-linked trade flow. 

Chinese Aluminium Investment Shifts Focus to Overseas Production Facilities

Chinese Aluminium

Chinese aluminium investment is pivoting toward international markets as domestic production approaches government-imposed capacity limits. China produced 43.4 million tonnes of aluminium in 2024 and already possesses capacity to reach the government's production cap of 45 million tonnes per year. Therefore, any new Chinese aluminium investment will concentrate on facilities outside China rather than expanding domestic capacity.

Production Growth Slows in China While Global Expansion Accelerates

China's aluminium production growth will decelerate dramatically to approximately 0.4% compound annual growth rate over the medium term. This represents a significant shift from China's previous rapid expansion that outpaced global competitors. Meanwhile, Chinese aluminium investment will target strategic locations including Indonesia, Saudi Arabia, and Angola for new production facilities.

Indonesia emerges as the primary beneficiary of Chinese aluminium investment, with approximately 3 million tonnes of new annual capacity expected. The country has transformed from a bauxite supplier to China into a downstream aluminium producer. As a result, Indonesia's aluminium industry will receive substantial Chinese capital and technology transfer.

Secondary Aluminium Production Expands Despite Scrap Supply Constraints

Chinese secondary aluminium production will reach almost 30 million tonnes per year in 2025, doubling from 15 million tonnes five years ago. However, tight scrap supply continues to limit capacity utilization rates below 50% across the industry. This constraint affects the efficiency of Chinese aluminium investment in recycling infrastructure.

Ron Knapp, advisor to China Hongqiao Group chairman, emphasized that the production cap remains firm government policy. The cap prevents overcapacity issues similar to those experienced in China's steel industry. Therefore, Chinese companies must pursue aluminium investment opportunities in international markets to maintain growth trajectories.

Chinese aluminium demand growth will also moderate significantly in coming years. Primary aluminium consumption will increase by just 0.9% in 2025, falling to approximately 0.6% thereafter. Consequently, Chinese aluminium investment strategy focuses on securing global market share rather than serving domestic demand alone.

The Metalnomist Commentary

This strategic pivot reflects China's maturing aluminium sector and government commitment to sustainable industrial development through production caps. The shift toward overseas Chinese aluminium investment, particularly in resource-rich countries like Indonesia, will reshape global aluminium supply chains and create new competitive dynamics in international markets.

Cyclic VAC US magnet recycling partnership boosts North American circularity

Cyclic Materials

The Cyclic VAC US magnet recycling partnership marks a major step toward a circular rare earth magnet supply chain in North America. Under a new 10-year exclusive deal, Cyclic Materials will recycle swarf from VAC’s Sumter, South Carolina magnet plant. As a result, the Cyclic VAC US magnet recycling partnership links cutting-edge US magnet manufacturing with low-carbon, recycling-based feedstock.

Building a circular rare earth magnet supply in the US

The Cyclic VAC US magnet recycling partnership will capture byproducts from VAC’s US production lines. VAC produces neodymium-iron-boron magnets for automotive, defense, industrial and renewable energy uses. Meanwhile, the Sumter facility will anchor long-term supply for General Motors’ EV platforms under a decade-long agreement.

Cyclic will process the swarf into recycled rare earth raw materials with a reported 75pc lower carbon footprint than mined material. In parallel, Cyclic plans to invest over $20mn in a Mesa, Arizona plant. That facility is designed to process 25,000 t/yr of end-of-life magnet components from early 2026. Together, these projects push US magnet recycling beyond pilots and into industrial scale.

VAC’s US growth links primary offtake and recycling loops

VAC’s US expansion combines primary offtake, federal funding and recycling partnerships into one integrated ecosystem. E-VAC, VAC’s US subsidiary, has secured more than $200mn from the US Defense and Energy departments. These funds support the Sumter plant, which will ramp magnet output through the decade.

At the same time, VAC signed an offtake agreement with Pensana for mixed rare earth carbonate from Angola’s Longonjo project. That deal will support eVAC’s magnet output rising from 2,000 t/yr to 12,000 t/yr by 2029. The Cyclic VAC US magnet recycling partnership adds a second feedstock leg, closing material loops around swarf and, in time, end-of-life magnets. Therefore, VAC’s model blends upstream mining offtake with downstream recycling to reduce dependence on Chinese supply.

The Metalnomist Commentary

This partnership shows how serious US and allied players have become about mine-to-magnet-to-recycle value chains. If Cyclic can scale its Arizona facility as planned, swarf and scrap could evolve from waste streams into strategic feedstock. For OEMs like GM, a resilient US magnet base that mixes primary and recycled material will be central to long-term EV and defense planning.

Pensana VAC rare earth offtake agreement anchors Western mine-to-magnet strategy

VAC

Pensana VAC rare earth offtake agreement marks a pivotal step in building a Western rare earths supply chain. Pensana will supply mixed rare earth carbonate from its Longonjo project in Angola to Vacuumschmelze (VAC) under a five-year contract. This Pensana VAC rare earth offtake agreement underpins new US magnet capacity and links African upstream resources with Western downstream processing.

Longonjo MREC offtake underpins eVAC’s US magnet build-out

Pensana VAC rare earth offtake agreement will initially channel Longonjo’s MREC into VAC’s growing magnet footprint. Pensana plans to start production at Longonjo in late 2026, targeting 20,000 t/yr of mixed rare earth carbonate. The company ultimately aims to double output to 40,000 t/yr in a second phase.

Meanwhile, VAC is scaling its eVAC permanent magnet plant in Sumter, South Carolina. The Pensana VAC rare earth offtake agreement is designed to support 2,000 t/yr of NdFeB magnet output, rising to 12,000 t/yr by 2029. By locking in MREC feedstock, eVAC can plan long-term capacity and qualify Western supply for automotive, wind and defense customers.

VAC is also racing to develop heavy rare earth-free magnet alloys to reduce dependence on China. Its latest NdFeB alloy eliminates terbium and dysprosium, which are currently produced at scale almost exclusively in China. As a result, the Pensana VAC rare earth offtake agreement complements alloy innovation by anchoring a diversified feedstock base.

US-backed rare earths supply chain gains momentum

The Pensana VAC rare earth offtake agreement is deeply intertwined with US critical minerals policy. eVAC’s executive chairman explicitly linked the deal to US government funding and backing from the US International Development Finance Corporation. Washington sees mine-to-magnet projects as central to national and economic security.

Developing a Western rare earths supply chain has become a strategic priority for the US and its allies. Recent US-Australia critical minerals agreements will co-invest $1bn each in priority projects and accelerate permitting. Against this backdrop, the Pensana VAC rare earth offtake agreement stands out as a commercially concrete move, not just a policy ambition.

Pensana has also reoriented its downstream strategy to align with this policy shift. The company scrapped plans for a UK refinery at Saltend near Hull to focus on US-linked development. In parallel, Pensana signed another offtake for up to 20,000 t/yr of MREC with US refiner ReElement Technologies, further embedding Longonjo into North American supply chains.

The Metalnomist Commentary

The Pensana VAC rare earth offtake agreement shows how quickly the mine-to-magnet landscape is shifting toward US-aligned supply chains. For magnet makers and alloy developers, secure MREC supply from Longonjo reduces China risk and supports long-term contracts with OEMs. The next test will be whether financing, permitting and midstream processing capacity can scale fast enough to match ambitious magnet output targets.

New Al wire rod plant planned for UAE to supply 36,000 t/yr as power cable demand rises

Mark Cables

New Al wire rod plant planned for UAE will add new downstream capacity next to a major primary aluminium hub. Mark Cables Power Solutions plans to build an aluminium rod manufacturing plant in the Khalifa Economic Zone, adjacent to Emirates Global Aluminium’s Al Taweelah smelter. New Al wire rod plant planned for UAE targets 36,000 tonnes per year of multiple aluminium rod grades. Therefore, the project strengthens regional conversion capacity for power cable and conductor markets.

The plant will supply Mark Cables facilities in Dubai and Angola, while also selling to third-party customers across the UAE, Africa, and Europe. Meanwhile, Emirates Global Aluminium signed a non-binding agreement to supply 35,000 tonnes per year of aluminium to the proposed facility. As a result, the site pairing reduces logistics friction between primary metal and rod conversion.

Wire rod demand grows as grids expand and electrification accelerates

Wire rod is becoming a high-growth aluminium segment as electricity networks expand. Regional and global utilities are building new transmission and distribution capacity to integrate renewable power. Meanwhile, electrification trends in developing economies are lifting baseline demand for cables and conductors. Therefore, New Al wire rod plant planned for UAE aligns with long-cycle grid spending and near-term manufacturing localisation.

Aluminium is also gaining share against copper in many power cable applications. Manufacturers use aluminium to lower material cost while meeting performance requirements. However, substitution depends on design choices, standards compliance, and end-user specifications. As a result, new rod capacity can benefit most where buyers already approve aluminium conductor solutions.

UAE downstream expansion targets value-added exports and supply security

Placing rod production beside a large smelter can improve supply security and working capital efficiency. The proximity can support steadier metal flows, faster turnaround, and lower conversion risk. Meanwhile, selling into Africa and Europe can diversify demand beyond domestic consumption. Therefore, New Al wire rod plant planned for UAE can act as an export-oriented downstream anchor.

The project also signals a broader shift toward value capture inside producing countries. UAE aluminium strategy increasingly links primary output to downstream products that serve energy transition supply chains. However, success will depend on ramp execution, customer qualification, and competitive conversion costs. As a result, early offtake traction with third-party buyers will be a key indicator.

The Metalnomist Commentary

Wire rod investment follows the same logic as grid investment. Meanwhile, aluminium substitution will keep expanding where cost and performance align. Therefore, UAE-based rod capacity could win share by combining low-friction metal supply with export-ready logistics.

Kamoa-Kakula Sulphuric Acid Output Turns Copperbelt Squeeze Into Margin Support

Ivanhoe

Kamoa-Kakula sulphuric acid production has become a major earnings support for Ivanhoe Mines as tight acid availability across the African Copperbelt lifts by-product revenue. The company’s new direct-to-blister smelter in the Democratic Republic of Congo is turning a regional supply constraint into a margin advantage.

Kamoa-Kakula sulphuric acid output reached 117,871t in the first quarter. Ivanhoe sold 107,700t to six offtakers at an average realised price of $467/t.

Kamoa-Kakula sulphuric acid pricing is now moving higher. Ivanhoe recently signed a June delivery contract at $725/t and plans to re-tender and reprice remaining contracts by the end of the quarter.

The shift is strategically important because many copper producers in the DRC and Zambia consume sulphuric acid for leaching. Kamoa-Kakula, by contrast, produces acid as a by-product, giving Ivanhoe a natural hedge against the same squeeze hurting regional competitors.

Acid Credits Change the Kamoa-Kakula Cost Structure

Sulphuric acid has become one of the hidden drivers of Copperbelt copper economics. The DRC and Zambia rely heavily on acid for solvent extraction and leaching operations, and supply has tightened because of Middle East sulphur disruption, Zambian acid export controls and smelter maintenance in the region.

Ivanhoe said around 80% of sulphur imported into Africa moves through the Strait of Hormuz. That makes the Copperbelt highly exposed to disruption in Middle Eastern sulphur flows.

The Kamoa-Kakula smelter changes Ivanhoe’s exposure. Instead of paying higher acid costs, the operation is selling acid into a tight regional market.

Smelter operating costs averaged $0.27/lb in the first quarter. Sulphuric acid by-product credits more than offset that cost at $0.32/lb.

This cost structure helped lower Kamoa-Kakula’s cash cost to $2.58/lb from $2.99/lb in the previous quarter. The result was slightly below the lower end of Ivanhoe’s 2026 guidance range of $2.60-3.00/lb.

The smelter also reduced logistics costs. Kamoa-Kakula exported 99.7% pure copper anodes instead of 35-40% copper concentrate, cutting logistics costs to $0.22/lb from $0.70/lb in the fourth quarter.

That shift matters because the smelter moves Ivanhoe further down the value chain. Higher-grade exported material reduces transport intensity, lowers logistics exposure and improves revenue capture.

Kamoa-Kakula generated revenue of $862mn, operating profit of $221mn and Ebitda of $397mn in the quarter. That represented an Ebitda margin of 46%.

However, Ivanhoe’s group results were still weaker. Adjusted Ebitda fell to $191mn from $226mn a year earlier, while the company reported a $2mn quarterly loss compared with a $122mn profit a year earlier.

The loss mainly reflected Ivanhoe’s $42mn share of loss from Kamoa Holding after Kamoa-Kakula booked a $183mn tax adjustment to settle DRC tax claims from previous years. This means the headline loss should be separated from the operational value of the smelter and acid credits.

Smelter Ramp-Up Links Copper Recovery to Regional Supply Strategy

Kamoa-Kakula’s copper output remains affected by disruption from last year’s seismic activity. The operation produced 61,906t of copper in concentrate in the first quarter, down from 133,120t a year earlier.

Contained copper in blister and anode totalled 71,417t. This included 63,671t from the on-site smelter and 7,746t from the Lualaba Copper Smelter in Kolwezi.

Ivanhoe maintained Kamoa-Kakula’s 2026 guidance at 290,000-330,000t of contained copper in anode or blister. Its 2027 guidance remains at 380,000-420,000t.

The company still expects production to return to more than 500,000 t/yr from 2028, with a target cash cost below $2/lb. Reaching that level will depend on mine recovery, smelter utilisation, power stability and logistics performance.

The smelter is currently operating at around 60% of design capacity. It is producing acid at about 1,350 t/d, but further ramp-up is constrained by concentrate availability.

Ivanhoe is assessing purchases and toll treatment of local third-party copper concentrates to raise smelter utilisation and improve margins. This could make Kamoa-Kakula more important to the regional concentrate market.

That point matters globally. Chinese smelters continue to face negative treatment charges, showing how tight copper concentrate supply has become. If Kamoa-Kakula becomes a larger third-party treatment option, it could offer an alternative regional route for selected Copperbelt concentrates.

Logistics are also changing. The first shipment of Kamoa-Kakula anodes moved through the Lobito railway corridor during the quarter and reached the Atlantic port of Lobito before shipment to Europe for refining.

Ivanhoe said the Lobito rail route takes around seven days from the DRC Copperbelt to the port. That compares with more than three weeks by truck to Durban or Dar es Salaam.

Flood damage in Angola temporarily halted Lobito shipments, but movements are expected to resume later this month. If reliable, the corridor could become a major strategic route for Central African copper exports.

Energy remains another critical variable. Ivanhoe has secured five months of diesel supply to protect operations from global supply-chain disruption.

The company is also developing a 60MW solar and battery storage project expected to deliver baseload power to Kamoa-Kakula from early in the third quarter. It plans to double on-site solar capacity to 120MW by the end of 2027.

These steps show that Kamoa-Kakula is no longer only a copper mine story. The asset now combines mining, smelting, acid supply, anode exports, rail logistics and on-site power strategy.

That integrated model gives Ivanhoe a stronger position in a region where other copper producers are exposed to acid shortages, sulphur disruption, diesel risk and long trucking routes.

The Metalnomist Commentary

Ivanhoe’s smelter has turned Kamoa-Kakula into a more strategic Copperbelt asset, not just a high-grade copper producer. In a market where acid, logistics and power can decide margins, the operation’s by-product and infrastructure advantages may become as important as its copper grade.