Qatar’s $524B Wealth Fund Poised to Acquire Stake in Ivanhoe

BREAKING: Qatar’s massive $524 billion sovereign wealth fund is on the verge of securing a minority stake in Canada’s Ivanhoe Mines Ltd., according to confidential sources. An official announcement from the Qatar Investment Authority (QIA) is expected in the coming days, marking a significant move in the global mining sector.

The potential acquisition comes as Ivanhoe’s market value sits at approximately C$17.9 billion (around $13 billion). The exact size of the stake being sought by the QIA remains undisclosed, but this investment could represent one of their most substantial entries into the mining industry since their previous stake in Glencore Plc.

Ivanhoe, led by billionaire Robert Friedland, operates the Kamoa-Kakula complex in the Democratic Republic of Congo, one of the globe’s premier copper sources. However, the company recently faced a serious setback due to seismic activity that caused flooding at this flagship project, prompting a reduction in its full-year output guidance. This incident has seen Ivanhoe’s stock plummet by more than 20% this year, raising questions about its financial stability.

This investment aligns with the QIA’s strategy under newly appointed CEO Mohammed Al Sowaidi, who aims to more aggressively deploy funds from Qatar’s expanding gas projects. In an interview earlier this year, Al Sowaidi revealed plans for an additional $500 billion investment in the United States over the next decade, mirroring strategies adopted by other Gulf nations like Saudi Arabia’s Public Investment Fund.

With Ivanhoe already backed by substantial Chinese investments, including CITIC Metal as its largest shareholder and significant stakes from Zijin Mining Group Co., the QIA’s potential involvement signals a growing interest in diversifying its portfolio amid shifting global market dynamics.

As the QIA prepares for its announcement, industry watchers will be keenly observing the implications of this deal on both Ivanhoe’s recovery trajectory and Qatar’s strategic investment moves in the mining sector. Stay tuned for updates as this story develops.