MMG extends Aussie firm’s P2bn contract at Khoemacau
Pauline Dikuelo | Monday July 22, 2024 06:00
The revised contract, valued at approximately (Australian Dollars) AU$240 million (P2.1 billion), will now continue until June 30, 2025.
Under the agreement, Barminco will continue to provide underground development, production, and mining support services.
In a statement, Perenti, the parent group of Barminco, said the latest agreement follows successful discussions regarding the five-year contract for Khoemacau. Barminco has been operating at Khoemacau since the mine commenced in 2019, having secured its mandate from MMG’s predecessor, Cuprous Capital.
The one-year extension will be under revised terms, Perenti officials said.
Perenti contract mining president, Gabrielle Iwanow, said the renewed contract underscores the mine's strong potential for expansion to meet the growing global demand for copper.
'The continuation of this contract enables the Barminco team to continue working at Khoemacau under revised terms,” she said. “The region surrounding the operations includes multiple resources beyond the current scope,' she added. “Cumulatively, these resources have the potential to support much higher production and maintain many years of mine life. “We look forward to working with MMG to continue high-quality operations at Khoemacau.”
Perenti officials said Barminco's continued presence at Khoemacau aligns with MMG’s exploration of potential expansion opportunities, reinforcing the mine's capacity to meet future copper demands while contributing to Botswana's economic growth.
Currently, Barminco is working to deliver on the current mine plan whilst MMG which finalised the Khoemacau purchase earlier this year, explores potential expansion opportunities at Khoemacau. Khoemacau is one of the highest quality copper mines globally, with a strong case for expansion to meet growing global copper demand.
Before the sale, Khoemacau was finalising plans for an AU$700 million expansion of its operations in order to double its production to 130,000 tonnes by 2026. At that level, Botswana would be within the top 30 copper producers in the world.
MMG has said it will go ahead with the expansion.
Last September, Perenti also scooped the AU$235 million contract to expand Sandfire’s Motheo Mine, which, like Khoemacau, is also located on the Kalahari Copperbelt.
Khoemacau put its first concentrate in June 2021 and has now ramped up to a full processing capacity of 3.65 million tonnes per annum which is expected to produce as much as 65,000 tonnes of copper in concentrate this year.
Botswana is considered one of the most attractive mining jurisdictions in Africa, boasting an investment-grade rating from both Moody’s and S&P Global.