In the early hours of trading, a jolt from central Africa echoed across the global commodities market — and copper miners Capstone Copper and Sandfire Resources were among the first to capitalise.
On Tuesday, shares of Capstone Copper (ASX: CSC) rose 5.89% to $8.355, while Sandfire Resources (ASX: SFR) climbed 3.27% to $11.38, making them standout performers on the ASX. The surge came in response to news that Canadian mining giant Ivanhoe Mines had withdrawn its 2025 production guidance for the Kamoa-Kakula Copper Complex, Africa’s largest copper mine.
Sandfire Resources’ current price data [Market Index]
Seismic Shockwaves From the Heart of Africa
Ivanhoe Mines reported “intermittent seismic activity” at the Kakula underground mine in the Democratic Republic of the Congo (DRC), prompting a complete halt in operations. This pause extends beyond production—it includes a suspension of cost guidance and the timeline for their new smelter facility.
The company warned the disruptions could last weeks, triggering global concern over supply and pushing London Metal Exchange prices up 1.2% to US$9,610 per tonne.
Why the Congo Matters in Copper
The Kamoa-Kakula project is no ordinary site. With rich, high-grade ore and an ambitious production roadmap, it has been considered one of the most significant new developments in the global sector. Ivanhoe’s joint venture with Zijin Mining of China had investors eyeing it as a critical pillar in future copper supply.
Now, with operations paused indefinitely, market attention has turned to alternative suppliers—especially those in geopolitically stable regions.
Capstone and Sandfire: Riding the Wave
The disruption in the DRC has worked in favour of Capstone Copper and Sandfire Resources, two Australian-listed producers with international portfolios but little to no direct exposure to Africa.
Capstone Copper operates in the Americas and has become an attractive alternative for investors seeking supply security. On Tuesday, Capstone’s stock hit a high of $8.49 before settling at $8.355, with trading volume jumping to over 1.41 million shares, far above its 4-week average. The company remains down 14.83% YTD, but short-term momentum has reversed sharply amid the Congo headlines.
Meanwhile, Sandfire Resources—which owns operations in Botswana, Spain, and Portugal—saw its shares climb to $11.38, trading at a 22.63% YTD gain. It was bolstered by strong investor confidence in its geographic diversification and operational reliability. Sandfire traded nearly 1.53 million shares, slightly above its recent average.
Capstone Copper’s current price data
These miners have emerged as safe havens for investors looking to maintain copper exposure while avoiding politically and geologically volatile regions like central Africa.
Also Read: MAC Copper in Trading Halt Amid Control Deal Talks; Copper Rivals Surge
What This Means for Copper Prices and Supply Chains
Copper’s critical role in renewable energy, electric vehicles, and infrastructure makes it one of the most strategically important metals today. A supply shock at a major mine like Kamoa-Kakula can’t be easily replaced.
As a result, analysts now expect continued bullish pressure on prices if Ivanhoe’s disruptions persist. Traders and manufacturers alike are recalibrating risk models and diversifying sourcing strategies—often in favour of miners in Australia, the Americas, and other stable jurisdictions.
A Broader Warning for Global Mining
The Congo disruption also highlights the broader fragility of global mining operations. Whether it’s political unrest in Peru, protests in Chile, or seismic activity in the DRC, the supply chain for critical minerals remains vulnerable to a wide array of risks.
Investors are increasingly prioritising geographic stability, strong ESG performance, and resilient operations when evaluating mining stocks. And for now, Capstone and Sandfire are ticking those boxes.
The Bottom Line
The temporary shutdown of Africa’s largest mine has triggered a significant market reaction—pushing Capstone Copper and Sandfire Resources to the forefront as preferred alternatives.
With the global energy transition demanding more than ever, and supply vulnerabilities becoming increasingly apparent, expect continued market volatility—and potentially more gains—for miners operating far from geopolitical and geological fault lines.
