Ivanhoe Mines is expanding its exploration for copper by forming a joint venture with Pallas Resources in Kazakhstan’s Chu-Sarysu basin, securing exploration rights for 16,000 km². The company intends to invest C$18.7 million initially, with a possibility of increasing it significantly based on exploration results, seeking to replicate its successful mining efforts from the DRC in this promising region.
Ivanhoe Mines is intensifying its global copper exploration by initiating a venture in Kazakhstan’s Chu-Sarysu copper basin. This ambitious project involves a joint venture with UK-based Pallas Resources, enabling Ivanhoe to explore a vast area of up to 16,000 km², significantly larger than its existing operations in the Democratic Republic of Congo (DRC).
Under the joint venture agreement, Ivanhoe has secured a 20% equity stake, with potential to increase this to 80% over time. The initial investment is projected at C$18.7 million (approximately $13 million) over two years, potentially expanding to C$115 million depending on exploration outcomes that may warrant further resource development initiatives.
The Chu-Sarysu basin is notable for being the third-largest sedimentary copper basin globally, housing around 27 million tonnes of known copper resources. The U.S. Geological Survey has also estimated an additional 25 million tonnes of undiscovered copper in the basin, indicating considerable untapped resources alongside lead, zinc, silver, barium, and strontium deposits.
Drawing on Ivanhoe’s past successes, particularly in the DRC where over 50 million tonnes of copper deposits were identified, the company has already begun analyzing digitized Soviet-era geological data in the Chu-Sarysu basin to pinpoint promising exploration targets.
Robert Friedland, Ivanhoe’s founder and executive co-chairman, remarked on the venture’s significance, highlighting their established presence in Kazakhstan and the potential of the Chu-Sarysu basin as a major global copper exploration site. He noted their strategy to leverage the largest land-holding in the region to enhance their resource discovery efforts.
This new exploration initiative complements Ivanhoe’s existing projects, particularly in the DRC’s Western Forelands area near the Kamoa-Kakula copper complex. The company anticipates providing updates on these developments soon, further expanding their copper exploration efforts.
Kazakhstan is a vital player in the global mining industry, with mining and quarrying services contributing approximately 14% of its GDP and 17.5% of total exports, valued at about $10.5 billion. The country’s advantageous mining conditions, which include a skilled workforce and lower operational costs, make it an increasingly attractive target for large-scale mineral exploration and investments.
Ivanhoe Mines has made a significant advancement in global copper exploration by partnering with Pallas Resources in Kazakhstan, targeting the expansive Chu-Sarysu basin. With substantial investment commitments and a strong operational framework, the project aims to unlock new copper resources, building on Ivanhoe’s previous successes in the DRC and enhancing the company’s exploration capabilities.
Original Source: www.chemanalyst.com
