Zinc — The Anti-Corrosion Metal

Kipushi: A World-Class Zinc Mine

The Kipushi mine, operated by Ivanhoe Mines in a joint venture with Gecamines, reopened in November 2024 after 31 years and has rapidly established itself as the world's highest-grade zinc operation. In its first full year of production (2025), Kipushi produced 203,168 tonnes of zinc — a record — with 2026 guidance of 240,000-290,000 tonnes following a 20% debottlenecking increase in processing capacity to 960,000 tonnes per annum.

Beyond zinc, Kipushi concentrates contain valuable germanium and gallium — both critical semiconductor materials subject to Chinese export controls. Korea Zinc's $7.4 billion processing facility in Clarksville, Tennessee, is designed to process Kipushi concentrates, creating a vertically integrated DRC-to-US supply chain for these strategic materials.

Kipushi: The World's Richest Zinc Deposit

The Kipushi mine, operated by Ivanhoe Mines, contains the world's highest-grade zinc deposit — with grades exceeding 35% zinc in some areas, compared to a global average of 4-8% for zinc mines. Kipushi's exceptional grades mean that a relatively small mining operation can produce globally significant zinc volumes at industry-leading margins.

Kipushi's zinc-copper-germanium polymetallic orebody makes it one of the most valuable mineral deposits in the corridor. The combination of zinc (industrial), copper (energy transition), and germanium (semiconductor/defence) in a single mine creates a uniquely diversified revenue stream that reduces commodity price risk.

Global Zinc Market

Global zinc production is approximately 13 million tonnes per year, with China, Peru, Australia, India, and the US as major producers. The DRC has historically been a minor zinc producer, but Kipushi's restart could make it significant. Zinc's primary use — galvanising steel to prevent corrosion — means demand is closely tied to construction and infrastructure activity.

The energy transition creates additional zinc demand through galvanised steel in solar panel mounting structures, wind turbine towers, and transmission infrastructure. Zinc-air batteries and zinc-bromide flow batteries represent emerging applications that could add significant new demand if commercialised at scale.

Zinc prices have been volatile, trading between $2,200 and $3,500 per tonne over the past five years. The outlook depends on Chinese infrastructure stimulus, global construction activity, and mine supply growth. Kipushi's ultra-high grades make it profitable across virtually any zinc price scenario, giving the mine and the corridor reliable zinc freight volumes regardless of market conditions.

Zinc and the Corridor

Kipushi's location near Kipushi town on the DRC-Zambia border places it at the intersection of corridor logistics networks. Zinc concentrates from Kipushi could be exported through the Lobito Corridor or through southern routes via South Africa. The corridor's competitiveness for Kipushi exports depends on freight rates, port capacity, and the reliability of the DRC rail segment. Kipushi's high-value germanium by-product adds strategic importance that extends beyond zinc economics.

Zinc-Air Batteries and Future Applications

Zinc-air batteries represent a potentially transformative application that could dramatically expand zinc demand. These batteries offer very high energy density (theoretically 5x lithium-ion), use abundant and inexpensive zinc rather than scarce cobalt or lithium, and are non-flammable. Primary (non-rechargeable) zinc-air batteries are already used in hearing aids. Electrically rechargeable zinc-air batteries are in advanced development for grid-scale energy storage and potentially electric vehicles.

If rechargeable zinc-air batteries achieve commercial viability at scale — a significant technical challenge that companies like Zinc8 Energy Solutions and EOS Energy are pursuing — the resulting demand shift would transform zinc from a cyclical construction material into a strategic energy storage metal. For the corridor, this would significantly increase the strategic and commercial value of Kipushi's zinc production.

Zinc Processing and Smelting

Zinc concentrates from mines like Kipushi require smelting and refining to produce zinc metal. The nearest major zinc smelters are in South Africa (Zincor, though currently closed) and further afield in Namibia, Europe, and China. The absence of zinc smelting capacity near the corridor represents a value-addition gap: exporting zinc concentrates captures far less value than exporting refined zinc metal.

Establishing zinc smelting capacity within the corridor region — potentially as part of the Lobito Refinery Complex or as a standalone investment — would capture processing margins within Africa and reduce dependence on distant smelters. The economics depend on electricity costs (zinc smelting is energy-intensive), feed grade (Kipushi's ultra-high grades improve smelter economics), and logistics costs for both concentrate import and metal export.

Zinc Market Outlook and Kipushi Impact

The global zinc market faces a projected supply deficit as aging mines deplete and new large-scale projects are scarce. MMG's Dugald River and Vedanta's Gamsberg are among the few significant zinc mine developments of the past decade. Kipushi's restart would inject a meaningful new supply source into a tightening market, potentially influencing global zinc pricing.

Kipushi's impact on the zinc market extends beyond volume. The mine's ultra-high grades (35%+ zinc) produce a premium-quality concentrate that commands top pricing from smelters. The germanium by-product revenue subsidises zinc production costs, making Kipushi competitive at virtually any zinc price. This cost structure ensures reliable zinc production and freight volumes for the corridor regardless of zinc market conditions.

For investors, Kipushi represents a rare commodity: a genuinely world-class mineral asset in a region with improving governance and new logistics infrastructure. The combination of zinc, copper, and germanium in a single mine, served by the Lobito Corridor's rehabilitation railway, creates an investment narrative that spans base metals, critical minerals, and energy transition themes.

Zinc and Infrastructure Corrosion Protection

Galvanised steel — steel coated with zinc for corrosion protection — is the primary construction material for infrastructure in tropical and subtropical climates like those found along the Lobito Corridor. Railway bridges, overhead power lines, transmission towers, water pipes, roofing materials, and industrial buildings all use galvanised steel extensively. The corridor's own infrastructure construction consumes significant quantities of zinc through galvanised steel procurement.

This creates local demand for zinc that complements export-oriented production. As Africa's infrastructure development accelerates — driven by urbanisation, industrialisation, and investment programmes like the corridor — continental zinc demand will grow. Proximity to both supply (Kipushi, other corridor zinc mines) and demand (infrastructure construction) creates an efficient market for corridor zinc production that reduces transport costs and supports local value capture.

The energy transition adds another zinc demand dimension: solar panel mounting structures use galvanised steel extensively, with a typical 1MW solar installation requiring 35-45 tonnes of galvanised steel. As African countries expand renewable energy generation — including for powering corridor mining and processing operations — zinc demand for solar infrastructure will grow substantially.

Related Pages

Corridor mines: Kipushi

Key companies: Ivanhoe Mines · Gecamines

Related minerals: Germanium (by-product at Kipushi) · Copper (by-product at Kipushi)

Countries: DR Congo · Zambia · Angola