Africa Finance Corporation (AFC), the leading provider of infrastructure solutions in Africa, has secured a US$150-million senior loan agreement with Kamoa Copper. This funding will support the expansion of the Kamoa-Kakula Copper Complex located in the Democratic Republic of Congo (DRC).
Acting as both lender and arranger, AFC’s investment aligns with its mission to enhance the local processing of Africa’s rich mineral resources, thereby fostering economic growth across the continent.
The Kamoa-Kakula Copper Complex is a high-grade, low carbon-intensive underground copper deposit on the western edge of the Central African Copperbelt. Since commencing production in July 2021, the complex is now in its third expansion phase. This phase aims to boost copper production capacity by 33%, reaching over 600,000 tonnes per annum (tpa), and includes the construction of Africa’s largest copper smelter, capable of producing 500,000 tpa of 99% pure copper anodes.
Additionally, the expansion includes the refurbishment of turbine 5 at the Inga II Dam to restart 178MW of renewable hydroelectric generation capacity.
Expected to be completed by the end of 2024, this expansion will position Kamoa-Kakula as Africa’s largest copper producer and the third largest globally.
Kamoa-Kakula operates as a joint venture between Ivanhoe Mines, Zijin Mining, and the Government of the Democratic Republic of Congo. The venture has consistently demonstrated outstanding operational performance, delivering expansions on time and within budget. Its commitment to sustainability sets a benchmark for responsible mining in Africa.
With 91% of its full-time employees being Congolese and over $600 million paid in taxes and royalties to the DRC, Kamoa-Kakula significantly contributes to the local economy. In 2023, it accounted for 4% of the DRC’s gross domestic product. According to independent consultants Skarn Associates and WSP Group, it is also one of the world’s lowest greenhouse gas emitters per tonne of copper produced.
“This milestone is crucial in our mission to develop infrastructure ecosystems that integrate economies and drive economic transformation in Africa,” stated Samaila Zubairu, president and CEO of AFC. “Copper is essential for the global energy transition, and this mine expansion will strengthen Africa’s position in the global copper market, support the continent’s net-zero goals, create employment, and generate substantial revenue for the DRC.”
AFC’s participation in the Kamoa-Kakula project underscores its pivotal role in promoting infrastructure development that drives industrialization and enhances Africa’s global competitiveness.
In late 2023, Kamoa-Kakula became the first industrial user of the Lobito Atlantic Railway Corridor, a rail line connecting the DRC Copperbelt to the Atlantic port of Lobito in Angola. AFC served as a financial adviser to the Trafigura, Mota-Engil, and Vecturis consortium, which secured a 30-year concession for railway services and logistics. Utilizing the Lobito Atlantic Railway Corridor is expected to significantly lower logistics costs and reduce the carbon emissions associated with exporting mineral products from the DRC’s Copperbelt.
