What have been the main developments at the MMG in the past year?

Overall, MMG had strong financial performance and completed an equity placement in 2021, which enabled us to significantly reduce debt and strengthen our balance sheet. We have advanced our own projects while keeping a close eye on external opportunities. Both our Kinsevere operation in DRC and Las Bambas in Peru have significant development projects under review. We are well positioned to grow.

On an Africa operations level, we are focused on actively advancing our copper cathode production in the Copperbelt. This strategy is centered on advancing our Kinsevere Expansion Project, which is expected to be approved this year, and then looking beyond to other assets in the region either via acquisition or through exploration.

Could you comment on the current performance of Kinsevere?

In 2021, the Kinsevere operation slowed while we prepared the site for a transition to mining and processing of sulphide and cobalt ores. Despite this, the operation performed very strongly with good plant performance, increased overall recovery rate and very successful management of COVID-19 enabling continuous operations.

We continue to be very excited by the regional exploration targets which would be suitable for processing at Kinsevere. During the year we made progress on advancing the Kinsevere Exploration Project and we have also maintained an unwavering focus on efficiency and management of operational costs, which was particularly important given the slowdown as we prepare for the next phase of growth.

MMG has driven various community development initiatives. Could you share a few of the most significant ones and comment on your ESG approach?

On a global level, MMG seeks to positively contribute to the communities in which it operates by maximizing the value delivered to local stakeholders through more employment and local supply opportunities and by delivering social development programs.  We are also committed to responsible environmental and social performance and effective governance at all operations.

In 2021, we committed to the Cahier de Charge in the DRC which will deliver 18 projects in the areas around the Kinsevere operation. These projects are developed in close consultation with local community members and the program is set to deliver US$6 million worth of projects over five years.

Over the years we have delivered many projects focused on food security, education, health and training and development. We are particularly proud of the Farmers Assistance Program which has assisted hundreds of farmers in the production of maize. In 2021 the production of maize was 2,301 tonnes. We are also proud of our work in making education more accessible to local children by offering scholarships, building schools and supporting teachers. We recognize that education does not end in school and delivers lifelong benefits.  That’s why we have also delivered an adult literacy programme for residents in local villages.

How has DRC’s operational environment (in the south of the country) evolved in the last decade?

The south of the DRC is unique in offering substantial cobalt and high-grade copper resources which are still estimated to contain 40% of the cobalt available globally. The industry has also evolved over time from being primarily dominated by state-owned companies to more private companies present today. The period between 2009 and 2012 was particularly transformational with heavy investment in the mining industry.

However, challenges remain particularly around security, changing legal and regulatory frameworks, and infrastructure challenges such as sourcing reliable power supply.

Additionally, the growth of the artisanal mining sector over the past decade has presented safety and security concerns, particularly in cobalt mining. This is a complex issue given the role of artisanal mining in complementing household incomes or offering a route out of extreme poverty for many people.

These challenges can impact mining investment given the capital-intensive, long term nature of the industry. However, we expect that the mining industry in the DRC will remain resilient with a strongly positive outlook for global demand of copper and cobalt.

We also welcome the close collaboration between the China and DRC to ramp up infrastructure and the DRC Government’s commitment to address corruption, better allocate mining royalties and grow the industry.