Qatar’s sovereign wealth fund to acquire a $500m stake in Canadian mining company
Qatar’s sovereign wealth fund, the
Qatar Investment Authority (QIA), will acquire a $500 million stake in Ivanhoe
Mines Ltd. through a private placement, marking one of its largest moves into
the global mining sector.
The deal, priced at C$12 per share,
gives QIA a 4% stake in the Canadian mining company. Under the agreement, the
fund will also secure the right to board representation if its holding exceeds
10%, with both parties planning further strategic partnerships.
“This strategic investment reflects
QIA’s conviction not only in Ivanhoe Mines’ world-class portfolio of tier-one
assets, but also in supporting its team to sustainably supply critical minerals
essential to the global energy transition,” said QIA Chief Executive Officer
Mohammed Al Sowaidi.
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Ivanhoe, founded by billionaire
Robert Friedland, operates the Kamoa-Kakula copper complex in the Democratic
Republic of Congo, one of the world’s leading sources of copper. The project
has faced challenges this year after seismic activity caused flooding and
forced production cuts.
Despite a 14% rise in global copper
prices in 2025, Ivanhoe’s shares are down more than 20% this year, giving the
company a market value of about C$18 billion ($13 billion). The private
placement price reflects a 9% discount to Ivanhoe’s closing share price in
Toronto on Tuesday.
QIA’s move into Ivanhoe builds on
its earlier mining investments, including a stake in Glencore Plc. The fund,
which manages an estimated $524 billion, is expected to accelerate global
investments under CEO Al Sowaidi, supported by expanding revenues from Qatar’s
gas sector.
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Ivanhoe’s shareholder base already
includes major Chinese investors such as CITIC Metal and Zijin Mining Group,
who have the option to purchase additional shares at the same price as QIA to
prevent dilution.
Analysts at Jefferies noted that
Ivanhoe’s share count could rise by as much as 6.5% if both CITIC and Zijin
exercise these rights, compared with about 4% if only QIA participates.
Source: Bloomberg