Chinalco copper anode production rises as Dianzhong smelter adds capacity

Chinalco Copper Mining

Chinalco copper anode production is rising after a second furnace start-up. Chinalco copper anode production expands at the Dianzhong smelter in Yunnan. The upgrade replaces two older furnaces and modernizes operations. The project positions Chinalco for stronger domestic copper supply.

Capacity expansion at Yunnan’s Dianzhong smelter

The smelter will lift anode capacity from 191,700 t/yr to 249,800 t/yr. The first new furnace started in January; the second now enters service. A new refining facility adds 210,000 t/yr of copper cathode capacity. These upgrades enhance reliability and throughput for downstream customers.

Secondary copper strategy and cathode output

Each furnace includes a copper scrap feeding facility for higher recycling rates. This supports cathode output as concentrate supplies remain tight. Scrap supplied nearly 20% of global refined copper in 2024. China encourages more secondary copper use and new recycling capacity. Chinalco copper anode production will benefit from secure scrap sourcing.

The Metalnomist Commentary

Dianzhong’s phased upgrade aligns with China’s push for secondary copper. We expect improved margins from scrap blending and lower TC/RC exposure. Watch scrap import flows and cathode qualification as capacity ramps.

Boliden Zinc and Copper Output Rises After Lundin Mine Acquisitions

Swedish Boliden

Boliden zinc and copper output increased in the first quarter as the Swedish mining and smelting group benefited from the 2025 acquisitions of Somincor in Portugal and Zinkgruvan in Sweden. The additions lifted concentrate production sharply from a year earlier, although operational disruptions limited quarter-on-quarter momentum.

Boliden zinc and copper output growth was strongest on a year-on-year basis. Zinc-in-concentrate production rose by 54% to 89,200t, while copper-in-concentrate output increased by 53% to 28,824t.

Boliden zinc and copper output still faced several short-term constraints. Seismic activity halted operations at Garpenberg in Sweden, poor ground conditions weighed on Tara in Ireland, and heavy rainfall affected Somincor in Portugal.

The first-quarter result shows the impact of Boliden’s larger asset base. Acquisitions increased scale, but operational reliability, grade control and smelter performance remain central to the company’s 2026 metals outlook.

Zinc Growth Masks Garpenberg and Tara Disruption

Boliden’s zinc-in-concentrate output rose strongly from a year earlier because Somincor and Zinkgruvan added new mine volumes. However, production fell by 3% from the previous quarter, showing that acquired capacity did not fully offset operational headwinds.

Tara produced 17,413t of zinc-in-concentrate, down 19% from a year earlier. Poor ground conditions and other operational challenges weighed on the Irish mine.

Garpenberg output fell by 22% to 19,329t after seismic activity disrupted operations in mid-March. Boliden expects production to resume gradually in the second quarter, but the disruption has materially reduced the site’s 2026 outlook.

The company now expects Garpenberg milled volumes of around 1.5mn t in 2026, down from previous guidance of 3.7mn t. It forecasts 2.3mn t of milled volumes in 2027 and lowered Garpenberg’s zinc grade guidance to 2.7% from 2.9%.

Refined zinc production also weakened. Output fell by 2% on the year to 107,931t, mainly because production at Odda in Norway dropped by 19%.

Odda’s performance was affected by two unplanned roaster stoppages and the delayed start-up of another roaster. The decline shows how smelter reliability can offset stronger mine-side additions.

The zinc market backdrop remains tight in concentrate terms. Global refined zinc demand fell by 7% from the previous quarter because of seasonal patterns, but was unchanged from a year earlier. Global zinc concentrate production rose by 4% year on year, while spot treatment charges fell from $35/t to $0/t during the quarter.

Falling treatment charges are important for zinc smelters and miners. They indicate that concentrate availability remains tight relative to smelter demand, shifting bargaining power toward miners with available feedstock.

Copper Concentrate Tightness Supports Strategic Value

Boliden’s copper-in-concentrate output rose by 53% from a year earlier to 28,824t. The increase was mainly driven by the addition of Somincor and Zinkgruvan.

Quarter-on-quarter copper output slipped by 3% from 29,690t. Boliden attributed the decline mainly to slightly lower copper grades at Aitik and lower production at Somincor.

Aitik remained the company’s core copper asset. Milled volumes were 9.8mn t, broadly in line with a year earlier, but lower copper grades weighed on output.

However, Aitik showed operational strengths. Boliden reported high mining rates and better recoveries than in the first quarter of 2025 because of less oxidised ore.

At the smelter level, copper cathode production rose by 12% on the year to 41,567t, although it fell by 2% from the previous quarter. Harjavalta performed better than a year earlier, when strikes in Finland and a lack of suitable concentrates weighed on operations.

Casted copper anode production rose by 4% year on year to 107,714t. This supports Boliden’s integrated copper position, linking mine output with smelting and refining capacity.

Boliden also highlighted tightening copper concentrate conditions. Global refined copper consumption fell by 10% from the previous quarter and by 1% from a year earlier, but concentrate production was stable quarter on quarter.

Spot treatment charges continued to fall, and Chinese benchmark contracts settled at zero treatment and refining charges. This underlines structural tightness in the copper concentrate market, even when refined demand indicators are mixed.

Nickel output was mixed. Nickel-in-concentrate production rose by 20% on the year to 3,282t and increased by 30% from the fourth quarter, supported by higher grades at Kevitsa.

Refined nickel performance moved lower. Nickel-in-matte production at Harjavalta fell by 17% on the year to 8,425t because of an unfavourable feed mix and higher pyrite consumption.

Boliden left 2026 guidance unchanged for all mines except Garpenberg. That means the main revision affects zinc and silver more than copper or nickel.

The Metalnomist Commentary

Boliden’s quarter shows how acquisitions can lift headline production while operational risks still shape real supply. The sharper signal is in treatment charges: zinc and copper concentrate markets remain tight enough that mine reliability and smelter feed quality now carry strategic value.

Rio Tinto Copper Output Rises as Oyu Tolgoi Offsets Lithium Weakness

Rio Tinto

Rio Tinto copper output increased in the first quarter as stronger production from the Oyu Tolgoi mine in Mongolia lifted the group’s global copper performance. The UK-Australian miner produced 229,000t of consolidated copper in January-March, up 9% from a year earlier.

Rio Tinto copper output growth was driven mainly by copper in concentrates from Oyu Tolgoi, where production rose by 56% to 102,000t. The ramp-up helped offset weaker concentrate output at Escondida and lower refined copper production at Kennecott.

The first-quarter result shows the changing shape of Rio Tinto’s portfolio. Copper is gaining strategic weight as electrification, grids and industrial infrastructure support long-term demand, while lithium remains more exposed to weather, ramp-up timing and early-stage project execution.

At the same time, Rio Tinto reported higher alumina production but weaker bauxite and lithium output. Heavy rainfall and cyclone-related disruptions affected Australian bauxite mines, while weather events in Argentina reduced lithium carbonate equivalent production.

Copper Growth Strengthens Despite Mixed Mine Performance

Oyu Tolgoi was the strongest contributor to Rio Tinto copper output in the first quarter. Its continued ramp-up in Mongolia lifted copper in concentrates production to 102,000t, reinforcing the mine’s role as one of the group’s most important growth assets.

The result matters because large copper projects are increasingly difficult to bring into stable production. Oyu Tolgoi gives Rio Tinto a major long-life copper source at a time when global mine supply remains vulnerable to grades, permitting delays and operational disruptions.

Escondida delivered a mixed quarter. Refined copper output at the Chilean operation rose by 21% to 16,000t, but concentrates production fell by 14% to 77,000t.

Kennecott in the US was weaker. Refined copper production fell by 20% to 34,000t because of lower anode inventories after unplanned smelter maintenance and reduced concentrator throughput caused by geotechnical constraints.

Rio Tinto kept its full-year copper production guidance unchanged at 800,000-870,000t. This suggests the company sees first-quarter disruptions as manageable within its broader 2026 plan.

The company also began drilling at the Resolution Copper project in Arizona after completing the land exchange in March. Resolution remains strategically important because it could become a major US copper source if development advances.

Rio Tinto copper output therefore carries both short-term and long-term significance. Oyu Tolgoi is already lifting production, while Resolution represents future supply optionality in a market increasingly focused on domestic and allied copper sources.

Lithium Falls as Weather Disrupts Argentina Operations

Rio Tinto’s lithium performance weakened sharply in the first quarter. Attributable lithium carbonate equivalent production fell by 26% on the year to 12,700t.

The decline was caused by heavy rainfall and weather events that disrupted operations at Olaroz and Fenix in Argentina. These disruptions show that lithium brine and carbonate operations remain sensitive to weather, water balance and site logistics.

The continued ramp-up at the Rincón starter plant partly offset the production impact. Rincón is important for Rio Tinto’s lithium strategy because it supports the company’s expansion into battery materials.

Rio Tinto maintained its 2026 LCE production guidance at 61,000-64,000t. First production from Fenix 1B and Sal de Vida remains on track for the second half of 2026.

The aluminium chain also showed mixed results. Primary aluminium output rose by 1% on the year to 835,000t, but fell by 2% from the previous quarter.

Alumina production increased by 6% to 2.04mn t, while bauxite production fell by 11% to 13.28mn t. Heavy rainfall at Weipa in Queensland and cyclone-related shutdowns at Weipa and Gove reduced bauxite output.

Recycled aluminium production also fell by 8% to 61,000t. Rio Tinto kept 2026 guidance unchanged for primary aluminium, alumina and bauxite, indicating confidence in recovery through the year.

The first-quarter data show a portfolio with different operating pressures. Copper is benefiting from major mine ramp-up, lithium is facing weather disruption, and aluminium raw materials are exposed to Australian climate events.

The Metalnomist Commentary

Rio Tinto’s first quarter shows why diversified miners need both growth assets and operational resilience. Oyu Tolgoi is strengthening Rio Tinto copper output, but weather-linked lithium and bauxite disruptions show that energy-transition supply chains remain exposed to physical operating risk.

Boliden’s 2024 Output Shows Mixed Performance in Zinc and Nickel Production

Boliden

Zinc Production Declines, But Copper and Nickel Output Increase for Sweden's Boliden

Sweden-based mining company Boliden has reported mixed results for its 2024 production across various metals. Zinc output showed a notable decline, while copper and nickel production saw significant increases. This reflects both challenges and successes in the company’s operations, driven by factors such as environmental restrictions and planned maintenance.

Zinc Production Declines, While Copper and Nickel Perform Well

Boliden's zinc-in-concentrate production increased by 8% in the fourth quarter of 2024, reaching 41,680 tonnes. However, the company’s full-year zinc output fell by 16%, totaling 164,108 tonnes, attributed to limited production at the Swedish Garpenberg mine due to environmental permit restrictions. Additionally, maintenance work at the Swedish Boliden Area mine further impacted overall zinc output.

Despite the drop in zinc production, the company managed a 7% increase in zinc production in the fourth quarter, reaching 112,692 tonnes. For the full year, Boliden's total zinc output dropped by just 1% to 453,743 tonnes, a relatively small decrease considering the challenges faced.

Copper and Nickel Show Strong Growth

Boliden reported a 7% increase in its copper-in-concentrate production for Q4 2024, reaching 22,326 tonnes. This brought the total copper-in-concentrate output for the year to 90,692 tonnes, a 1% increase from 2023. However, copper cathode production saw a drop of 29% for the full year, totaling 158,968 tonnes, due to the suspension of cathode production at Sweden's Ronnskar smelter.

On the other hand, copper anode production rose by 6% in Q4, reaching 120,856 tonnes, and the total annual output increased by 11% to 433,778 tonnes. This was supported by higher output at the Ronnskar smelter in the fourth quarter.

Nickel production was one of the standout performers. Boliden’s nickel-in-concentrate output increased by 11% in Q4, reaching 2,849 tonnes. For the full year, nickel production surged by 16% to 11,529 tonnes, driven by higher recovery rates at Finland's Kevitsa mine. Additionally, nickel-in-matte production for the fourth quarter rose by 6%, totaling 11,715 tonnes. Annual nickel-in-matte production increased by 17% to 40,074 tonnes.

Boliden’s Outlook for 2025

While Boliden faced challenges with its zinc production, the company’s increased copper and nickel output in 2024 demonstrates its ability to adapt and meet growing global demand for these critical metals. The strong performance in copper and nickel, alongside ongoing operational improvements, positions Boliden to continue making significant contributions to the global mining sector in 2025.

Boliden Zinc Output Surge Reshapes Its 2025 Base Metals Profile

Boliden

Boliden zinc output surge became the clearest feature of the group’s 2025 performance. The company sharply increased mined zinc, while copper also moved higher and nickel stayed broadly stable. Asset restarts and acquisitions drove much of the change. As a result, Boliden zinc output surge has reshaped the company’s base metals profile.

The zinc growth was especially strong. Zinc-in-concentrate production rose 114pc year on year to 350,764t in 2025. The restart of Tara and the additions of Somincor and Zinkgruvan were the main drivers. Therefore, Boliden zinc output surge reflects both portfolio expansion and improved operating availability.

Refined output, however, showed a different pattern. Refined zinc metal production rose only 1pc to 457,345t. That more modest gain highlights the difference between mine growth and smelter expansion timing. Meanwhile, the Odda zinc expansion continued ramping up and supported stronger output in Norway.

Boliden Copper Production Improved, but Smelter Conditions Stayed Mixed

Boliden copper production also improved in 2025, although the gain was smaller than zinc. Copper-in-concentrate output increased 15pc to 104,400t. Somincor contributed added volumes, while Aitik improved later in the year. As a result, Boliden copper production ended the year on a firmer footing.

Aitik’s recovery is particularly important for the 2026 outlook. Copper grades improved toward the end of 2025 after earlier weakness. The company now expects better grades in the second half of 2026, along with higher throughput. Therefore, Aitik remains a key swing factor for Boliden copper production.

Refined copper performance stayed more stable than mined output. Copper cathode production rose 2pc to 162,329t, supported by strong performance at Harjavalta. Copper anode production remained broadly flat, although Ronnskar faced maintenance and operational disruption in the fourth quarter. Consequently, copper smelting conditions remain less straightforward than the mined copper recovery suggests.

Odda Zinc Expansion and Precious Metals Support the 2026 Outlook

The Odda zinc expansion remains one of Boliden’s most important operational themes. Output at Odda rose 10pc to 167,136t in 2025 as the smelter continued ramp-up. Hot commissioning is still ongoing, and new leach product volumes continue to increase. Therefore, Odda could remain a meaningful growth lever into 2026.

Nickel was the weaker area on the refining side. Nickel-in-concentrate output edged up 1pc to 11,627t, but refined nickel matte output at Harjavalta fell 16pc to 33,551t. Process disturbances and maintenance weighed on performance. As a result, Boliden nickel output looked stable upstream but weaker downstream.

The broader margin picture may depend increasingly on by-products. Boliden said stronger gold and silver prices were an important earnings driver in late 2025. That support is expected to remain relevant for smelter margins going forward. Meanwhile, planned 2026 maintenance shutdowns are expected to reduce operating profit, which makes precious metals support even more important.

The Metalnomist Commentary

Boliden’s 2025 result shows how much portfolio structure can change a miner’s growth profile in a single year. Zinc was the headline winner, but the deeper story is that smelter margins may depend as much on by-products and execution as on base metal volume. If Odda and Aitik continue improving, Boliden could enter 2026 with a stronger operating mix than the market first assumes.

Chinalco Boosts Copper Anode Capacity Amid Rising Scrap Use

Chinalco

Major Upgrade at Dianzhong Smelter Targets Increased Output and Efficiency

China’s Chinalco has commenced operations of a new copper anode furnace at its Dianzhong smelter in Chuxiong, Yunnan province. This initiative is part of a 515 million yuan ($70.2 million) upgrade project. The upgrade aims to elevate the smelter’s copper anode production from 191,700 tonnes per year to 249,800 tonnes per year. Furthermore, a 210,000 tonnes per year copper cathode refining facility is set to launch in May.

Increased Scrap Integration

The Dianzhong smelter, previously reliant on copper concentrate, now incorporates a copper scrap feeding facility. This addition aligns with the growing trend of utilizing secondary copper. In 2023, over 31% of China's refined copper output originated from copper scrap, according to the China Nonferrous Metals Industry Association. The rising cost of copper concentrate has driven many producers to favor copper scrap. This shift led to a 14% year-on-year increase in China's copper scrap imports, reaching 2.03 million tonnes from January to November.

Market Implications

This expansion by Chinalco reflects the broader industry trend of adapting to feedstock cost fluctuations and increasing reliance on recycled materials. The upgrade will strengthen Chinalco's copper production capabilities and contribute to the supply of copper cathode. The increased usage of copper scrap also highlights the growing importance of the circular economy within the metals industry.

Ivanhoe Copper and Zinc Production Soars Amid Smelter Commissioning

Ivanhoe copper

Strong First Quarter Driven by Kamoa-Kakula and Kipushi Output

Ivanhoe Mines reported a 79% year-on-year rise in adjusted EBITDA to $226 million in Q1 2025. The surge was fueled by a major jump in Ivanhoe copper and zinc production in the Democratic Republic of the Congo (DRC). The Kamoa-Kakula mine delivered 133,120 tonnes of copper, a 55% increase from last year. Meanwhile, Kipushi mine produced 42,736 tonnes of zinc, up by 32% on the quarter.

Smelter Commissioning Set to Unlock More Copper Value

Construction of the 500,000 t/yr smelter at Kamoa-Kakula is now complete, with commissioning underway. First copper anode production is expected in July. Despite selling 109,963 tonnes of copper in Q1 — up 29% — some inventory was held back in preparation for the smelter launch. Ivanhoe’s 2025 copper guidance remains 520,000–580,000 tonnes, with a long-term target of 600,000 tonnes/year.

Zinc Output Accelerates as Kipushi Ramps Up

Kipushi zinc sales rose 77% to 30,108 tonnes, reflecting ramp-up momentum since the November reopening. EBITDA at Kipushi jumped 160% to $10.5 million. Ivanhoe maintained 2025 zinc output guidance at 180,000–240,000 tonnes, with plans to exceed 250,000 tonnes in 2026. Ivanhoe is also expanding its exploration footprint through the Western Forelands copper belt, targeting discoveries near Kamoa-Kakula.

The Metalnomist Commentary

Ivanhoe’s investment in processing infrastructure like the Kamoa-Kakula smelter signals a strategic shift toward higher-margin, vertically integrated production. The scale and pace of Ivanhoe copper and zinc production position it as a dominant player in Africa’s critical minerals landscape.

Kamoa-Kakula copper production rises in 2Q as Ivanhoe locks in offtake

Ivanhoe Mines

Kamoa-Kakula copper production increased 11% year on year in the second quarter. Kamoa-Kakula copper production reached 112,009 tonnes of copper in concentrate. Operations resumed in early June after a 20 May seismic event. Ivanhoe cut 2025 guidance to 370,000–420,000 tonnes. Kamoa-Kakula copper production for the first half totaled 245,127 tonnes.

June output validated stable operations across three concentrators. The site produced 28,147 tonnes in June alone. The on-site 500,000-tonne-per-year smelter will start in early September. First 99.7% copper anode is scheduled for October.

Smelter start-up and offtake de-risk cash flows

Trafigura signed a three-year offtake for 20% of anode output. The deal includes a $200 million prepayment facility. Citic Metal and Gold Mountains secured the remaining 80% earlier this year. As a result, anode sales have full coverage during ramp-up.

In-country smelting should reduce transport and TC/RC exposure. The smelter also improves working capital turns. Therefore, Ivanhoe gains greater margin control across the value chain.

Recovery upgrades and new ore underpin 2026 growth

Project 95 targets a recovery lift from 87% to 95% by early 2026. The project is about 50% complete and on schedule. A new eastern mining area will add high-grade ore by the second quarter of 2026. These upgrades support volumes and lower unit costs.

Portfolio updates complement the copper outlook. Kipushi produced 41,788 tonnes of zinc in the quarter. Platreef remains on track for first PGM production in the fourth quarter.

The Metalnomist Commentary

Ivanhoe is pairing operational resilience with commercial de-risking. The smelter and offtakes tighten cash generation while recovery gains add structural margin. Watch guidance delivery, smelter ramp curves, and ore-quality cadence into 2026.

Ivanhoe Expects Kakula Copper Output to Drop in 2025

Ivanhoe Mines

Seismic Impact on Copper Production

Ivanhoe Mines has revised its 2025 copper production guidance at the Kamoa-Kakula complex in the Democratic Republic of Congo. The company now expects output between 370,000 and 420,000 metric tonnes, down sharply from its earlier forecast of 520,000 to 580,000 tonnes. This adjustment follows seismic activity in May that forced a temporary suspension of underground operations.

Kakula, part of the joint-owned Kamoa-Kakula complex, had delivered a record 437,061 tonnes of copper in concentrate in 2024. However, recent disruptions and subsequent water inflow management have cut near-term production expectations. Ivanhoe has stabilized water levels with added pumping capacity and restarted operations on the mine’s western side on 7 June, with plans to restart the eastern side later this year.

Outlook and Smelter Launch

Ivanhoe anticipates dewatering activities on the eastern mine zone will continue through the fourth quarter, while processing plants operate at reduced capacity. The project’s phase 1 and 2 concentrators are currently running at about 50% utilization, processing ore from surface stockpiles. Output should gradually recover as underground mining resumes across the complex.

Meanwhile, the company expects to commission its copper smelter in September, with first anode production scheduled for October. This development marks a significant milestone for Ivanhoe, as vertical integration could provide greater value capture and stability amid production disruptions.

The Metalnomist Commentary

Ivanhoe’s revised copper outlook highlights the operational risks inherent in mining in geologically complex regions. While short-term production losses are significant, the launch of its smelter may partially offset the impact by adding value downstream. Investors will closely watch whether recovery efforts align with timelines as global copper demand remains robust.

Expansion of Jinchuan's Copper Refining Operations Bolsters Production Capacity

Jinchuan Group

Jinchuan Group, a leading diversified metals producer in China, is set to significantly expand its copper refining capabilities with the launch of the second phase of its refinery in Jinchang city, Gansu province, by year-end. This development is part of Jinchuan's strategic efforts to enhance its position in the global copper market.

Enhancing Copper Refinery Capacity

The Jinchuan copper refinery project is designed in two phases, with the first 200,000 tons per year phase having commenced in June. The forthcoming second phase will double the facility's capacity to 400,000 tons per year. Additionally, Jinchuan has already operationalized a copper anode smelter with a capacity of 357,800 tons per year in September, which is anticipated to consume 1.4 million tons per year of copper concentrates.

Strategic Developments in Copper Production

Alongside the expansion in Jinchang, Jinchuan is progressing with a 300,000 tons per year copper cathode refinery project in Fangchenggang city, Guangxi province. This facility focuses on processing copper anodes and is expected to handle 1.38 million tons per year of copper concentrates with a copper content of 22 percent. The launch date for this refinery remains undisclosed.

Upon completion of these projects, Jinchuan's total production capacity for copper cathodes will surge to 1.4 million tons per year, a significant increase from the current capacity of 700,000 tons per year. This expansion reflects Jinchuan's commitment to not only boosting production but also to responding to global copper demand more effectively.

Market Impact

The expansion of Jinchuan’s refining operations is likely to influence market dynamics, particularly in terms of spot treatment and refining charges (TC/RCs) for copper concentrates. Market participants anticipate that the increased supply of refined copper may lead to reduced TC/RCs, affecting profitability for miners and smelters globally.

Kamoa-Kakula Copper Output Falls as Ivanhoe Shifts Toward Smelter Recovery

Ivanhoe

Kamoa-Kakula copper output fell sharply in the first quarter as Ivanhoe Mines continued to recover from seismic damage at the Kakula mine in the Democratic Republic of Congo. The complex produced 61,906t of copper in concentrate, down 54% from 133,120t a year earlier.

The decline reflects the continuing effect of the May 2025 seismic shocks that forced Ivanhoe to shut, drain and rebuild the Kakula mine. The asset remains in a staged recovery process and has not yet returned to full production.

Kamoa-Kakula copper output now sits below earlier expectations, forcing Ivanhoe to lower its 2026 guidance to 290,000-330,000t from 380,000-420,000t. The company also cut its 2027 target to 380,000-420,000t from 500,000-540,000t, although it still expects output to exceed 500,000 t/yr from 2028.

The weaker concentrate output is important for the global copper market because Kamoa-Kakula is one of the most important growth assets in the DRC copper belt. Any delay in its recovery reduces near-term copper supply from a region that has become central to global mine growth.

Smelter Output and Acid Production Cushion the Disruption

Ivanhoe’s first-quarter results also showed a shift in the site’s operating profile. While copper concentrate output fell sharply, the Kamoa-Kakula smelter produced 63,671t of anode during the quarter.

The company also produced 7,746t of copper in blister from the LCS smelter in Kolwezi. This shows that Ivanhoe is building more downstream processing capability even as underground mine recovery continues.

The smelter gives Kamoa-Kakula a strategic advantage in the DRC. Most producers in the African Copperbelt rely on sulphuric acid for leaching operations, while Kamoa-Kakula produces sulphuric acid as a byproduct.

The on-site copper smelter produced 117,871t of high-strength sulphuric acid in the first quarter. This has become more important because the closure of the Strait of Hormuz has raised concern over sulphur supply into African hydrometallurgical operations.

Sulphur and sulphuric acid availability can directly affect DRC copper production costs. Producers that rely on imported sulphur or purchased acid may face higher costs or operating constraints if Middle East disruptions persist.

Ivanhoe’s position is different. The company does not need sulphuric acid for its own main copper production route and can instead produce acid for regional demand. This could turn a regional input shortage into a commercial advantage.

The main external risk for Ivanhoe is diesel availability. Diesel remains important for on-site energy generation and logistics in the DRC. Ivanhoe has made advanced diesel purchases and implemented contingency measures to sustain operations.

The company also has a lower diesel exposure than many regional operators because it has access to 250MW of hydroelectric capacity. A further 60MW of solar power with battery storage is expected to come online soon, strengthening the site’s energy resilience.

Kipushi Zinc Growth Adds Diversification Despite Grid Instability

Ivanhoe’s Kipushi zinc-copper-lead-germanium mine delivered a stronger first-quarter result. The DRC mine produced a quarterly record of 65,044t of zinc in concentrate, up 52.2% from a year earlier and 5.9% from the previous quarter.

The result gives Ivanhoe an important diversification benefit while Kamoa-Kakula works through its recovery. Zinc concentrate output from Kipushi adds exposure to galvanizing, infrastructure, alloying and specialty metal supply chains.

Kipushi also carries strategic by-product relevance because the mine includes copper, lead and germanium. Germanium has become more important for semiconductors, fibre optics, infrared systems and defence applications.

However, Kipushi still faces infrastructure constraints. Ivanhoe said concentrator availability was affected by electrical grid instability, even as zinc output increased.

This highlights a wider challenge across the DRC mining sector. The country has high-grade resources and major growth potential, but reliable power, transport, reagents and logistics remain critical constraints.

For Kamoa-Kakula, the longer-term recovery depends on mine rebuilding, underground transport, smelter integration, acid market dynamics and energy reliability. The 2028 target of more than 500,000 t/yr remains achievable only if these systems stabilise together.

For the copper market, Ivanhoe’s first-quarter performance sends a mixed signal. Concentrate output remains sharply lower, but smelting and acid production are becoming more strategically valuable as regional supply chains face sulphur and fuel risk.

The Metalnomist Commentary

Ivanhoe’s first-quarter results show that Kamoa-Kakula is no longer just a copper volume story. Its smelter, sulphuric acid output and power mix could become strategic advantages in a DRC market exposed to reagent, fuel and logistics shocks.

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.

Chile copper smelter upgrade set to transform Paipote complex

Chile Copper Smelter

The Chile copper smelter upgrade at Enami’s Paipote complex is moving a step closer to reality as regulators signal support for the $1.7bn project. Chile’s environmental impact service SEA has recommended approval, with the Atacama region’s environmental commission scheduled to vote on 29 October. This Chile copper smelter upgrade would modernise a 1950s-era facility, strengthen support for small and mid-scale miners and align Chile’s copper refining base with stricter environmental standards.

The Paipote metallurgical complex currently processes regional ores for Chile’s numerous small and medium miners, but it has struggled with financial losses and environmental compliance. Enami temporarily closed the smelter in 2024 to address these issues. As a result, the Chile copper smelter upgrade proposal combines capacity growth with cleaner technology, positioning the Atacama facility as a more competitive and sustainable processing hub in the world’s largest copper-producing nation.

Chile copper smelter upgrade doubles capacity and adds refinery

Under the plan, the Chile copper smelter upgrade will more than double Paipote’s processing capacity to 850,000 t/yr of copper concentrates. The project will also add an electrolytic refinery capable of producing 240,000 t/yr of copper cathodes, allowing more value to be captured domestically instead of exporting concentrates. Beyond copper, the upgraded plant will process anode sludge to recover palladium, tellurium, selenium, platinum, silver and gold, deepening Chile’s exposure to high-value minor metals markets.

Enami has already received over 15 expressions of interest from banks, funds, miners and traders to finance the project through offtake-based structures. The Chile copper smelter upgrade therefore sits at the intersection of industrial policy and commercial appetite, using future production to unlock capital today. Technically, the project will install a new bottom-blowing reactor and continuous converting technology designed to lift captured emissions from around 95pc to 99pc, an important step in reducing the plant’s environmental footprint in the Atacama region.

The Metalnomist Commentary

If approved, Paipote’s modernisation would mark a significant reinforcement of Chile’s mid-tier copper processing base, particularly for smaller miners that rely on Enami’s infrastructure. The Chile copper smelter upgrade also illustrates how global copper leaders are using brownfield assets to deliver both higher ESG performance and more refined output. For traders and investors, the project underscores a broader trend: future copper supply security will increasingly depend on environmentally upgraded smelters, not just on new mines.

Smelter Ramp-Up Delayed Amid Seismic Setback

Ivanhoe Mines

Ivanhoe Mines has withdrawn its 2025 copper production guidance due to seismic disruptions at the Kakula mine in the Democratic Republic of Congo. The underground operations at Kakula were initially suspended on May 18, resumed briefly, and were suspended again on May 25 after further seismic activity. This operational volatility prompted Ivanhoe to review its previously announced copper production range of 520,000–580,000 tonnes for the year.

Water Inflow Escalates, Surface Operations Continue

The seismic events also increased water inflow at the site, necessitating new dewatering infrastructure to sustain future mining activities. As a result, the company also suspended its ramp-up schedule for the newly built direct-to-blister smelter, which was slated to produce its first copper anode in July. While underground mining is halted, surface concentrators remain active by processing stockpiled ore, and the nearby Kamoa mine remains unaffected.

The Metalnomist Commentary

Seismic risk now emerges as a critical operational challenge for copper mining in Central Africa. Ivanhoe’s decision highlights how geological instability can derail even well-planned projects. Investors and analysts will be watching closely as this event affects both copper market expectations and smelting capacity timelines.

Volkswagen ID.4 Production Halt Shows US EV Demand Pressure

Volkswagen EV

Volkswagen ID.4 production in the US will end as the German automaker shifts its Chattanooga, Tennessee, plant toward higher-volume internal combustion vehicle output. The decision reflects weaker electric vehicle demand in the US and the need to protect North American manufacturing utilisation.

Volkswagen said the EV market continues to challenge the industry and requires measured decisions. The company will stop producing the ID.4 at Chattanooga and begin assembling the all-new second-generation Atlas from mid-April 2026.

Volkswagen ID.4 production has been strategically important because the model is the company’s top-selling EV in the US. However, the ID.4 sold 22,373 units in 2025, far below the Atlas, which sold 71,044 units and remained Volkswagen’s second-best-selling model for the past three years.

The decision shows how automakers are adjusting production footprints as EV adoption slows. US EV sales fell by 27% year on year to 216,300 units in the first quarter, creating pressure on manufacturers to rebalance plant capacity, dealer inventory and product planning.

Chattanooga Shift Prioritises Higher-Volume SUV Demand

The Chattanooga plant will now focus on the second-generation Atlas, a three-row sport utility vehicle with much stronger US sales momentum. This gives Volkswagen a clearer volume base in a market where larger SUVs remain commercially attractive.

The move is not a full retreat from the ID.4. Volkswagen said model-year 2026 ID.4 vehicles will remain available through current inventory, supporting US demand into 2027. The company also plans a future version of the ID.4 for North America, although details have not yet been disclosed.

Still, the production shift is significant. Automakers rarely remove capacity from a model unless demand, margin or manufacturing strategy has changed. In this case, Volkswagen appears to be choosing a higher-volume SUV platform over a slower-moving EV in the near term.

This reflects a wider industry trend. EV demand has become more uneven as consumers respond to vehicle prices, charging access, policy uncertainty and changing incentive structures. Automakers now need more flexible production strategies rather than relying on straight-line EV growth forecasts.

EV Slowdown Could Weigh on Battery Materials Demand

Volkswagen ID.4 production changes also matter for the battery materials supply chain. Lower EV output can reduce near-term demand for lithium, nickel, graphite, manganese, copper, aluminium and rare earth magnet materials linked to electric drivetrains and battery systems.

The effect will not come from Volkswagen alone. The bigger issue is that several automakers are reassessing EV production rates in response to slower consumer adoption. If this pattern continues, battery material demand growth may become more volatile than earlier industry forecasts suggested.

For suppliers, the shift creates a timing problem. Many battery, cathode, anode and recycling investments were planned around rapid EV market expansion. Slower model-level output can leave material producers exposed to weaker offtake, lower utilisation and price pressure.

At the same time, Volkswagen’s decision does not eliminate long-term EV demand. It shows that the transition may move in phases, with automakers balancing EVs, hybrids and combustion vehicles depending on regional demand. North America may therefore remain a more mixed powertrain market than China or parts of Europe.

The Metalnomist Commentary

Volkswagen’s ID.4 decision shows that EV strategy is now being tested by real factory economics. The energy transition is still moving forward, but automakers will increasingly prioritise models that protect utilisation, margins and supply-chain stability.

Freeport Revises Copper Sales Forecast for 2Q

Freeport-McMoRan

Freeport McMoran, a US-based mining firm, has adjusted its second-quarter copper sales projections downward following a halt in copper concentrate exports from its Indonesian operations throughout June.

According to the company's announcement on Tuesday, Freeport now expects its total copper sales to be 5% lower than the initially forecasted 975 million pounds set in April. This adjustment is coupled with an estimated increase in unit net cash costs by 20 cents per pound to $1.77 per pound, attributed to reduced shipments during the quarter.

PT Freeport Indonesia, a joint venture with the Indonesian government, was unable to export concentrate or anode slimes in June due to the expiration of its export licenses on May 31. Approval to resume exports was granted today, valid until December as permitted by the Indonesian government.

Despite the setback, Freeport intends to transport the delayed portion of Indonesian copper production in subsequent periods, maintaining its total full-year sales guidance of 4.15 billion pounds.

Furthermore, Freeport has completed the construction of its new Manyar smelter in Gresik, Indonesia, and anticipates commencing copper cathode production "in the coming months," scaling up to full capacity by the end of the year.