Ivanhoe Mines has secured a $500 million investment from Qatar’s sovereign wealth fund, giving the Qatar Investment Authority (QIA) a 4% stake in the Canadian copper miner founded by billionaire Robert Friedland.
Under the agreement, Ivanhoe will issue 57.5 million common shares to QIA through a private placement at C$12 per share, valuing the company at C$17.8 billion.
“The investment is a powerful endorsement of Ivanhoe Mines’ vision to be a leading supplier of critical metals that will drive the electrification of the global economy,” said executive co-chair Friedland. “QIA’s forward-looking vision is fully aligned with our own.”
Copper, Zinc, and Platinum Projects
Ivanhoe operates the Kamoa-Kakula copper complex and Kipushi zinc-copper-germanium-silver mine in the Democratic Republic of Congo. It also expects to begin production this year in South Africa, while pursuing exploration in Angola, Zambia and Kazakhstan. The company is working to restore output at Kamoa after flooding disrupted operations earlier this year.
Sovereign Firepower
QIA, which manages $557 billion in assets, holds an 8.6% stake in mining giant Glencore and draws much of its wealth from Qatar’s vast offshore natural gas reserves. “We are in constant dialogue with sovereign partners,” Friedland said. “They always want more. We have ambitions to grow Ivanhoe Mines into a world-leading mining organization.”
The fund’s CEO, Mohammed Saif Al-Sowaidi, said the investment reflects QIA’s confidence in Ivanhoe’s portfolio of tier-one assets and its ability to “sustainably supply the critical minerals essential to the global energy transition.”
Exploration Horizons
Ivanhoe said the funds will support growth projects, further collaboration with QIA, and general corporate purposes. If QIA raises its stake above 10%, it may gain board representation. CITIC and Zijin, Ivanhoe’s largest shareholders, retain rights to purchase new shares to maintain their stakes.
M. Friedland added that QIA’s backing would be “instrumental in opening up new horizons” as Ivanhoe seeks new discoveries worldwide.
M&B with Reuters and Mining.com
Qatar Bets $500M on Ivanhoe Mines in Push for Critical Minerals
