In the second quarter of 2022 copper in concentrates production stood at a little over 10, 000 tonnes and in the same quarter of 2023 copper in concentrate rose to over 16, 000 tonnes, an increase of over 50%.
The uptick in copper production is the result of increased players in the copper industry with newly opened mines such as the Motheo Copper Mine having sent out its first copper production.
Motheo joins Khoemacau as the only operating mines on the Kalahari copper belt, the 1, 000km swathe running southwest to northeast, which is known to contain millions of tonnes of copper and silver resources, but whose heavy sands and poor infrastructure have restrained development over the decades. Sandfire’s executives revealed that the new mine was ramping up to an expected target of 20, 000 tonnes this year, which is expected to double up to 40, 000 tonnes by 2024.
Local copper exports have been riding a wave of growing international prices, with sales in the first quarter of 2023 reaching P1.4 billion, the highest quarterly earnings since 2016. The last time copper earnings got close to reaching the exports seen in the first three months of this year, was in the second quarter of 2015 when sales stood at P1.2 billion. That period marked the beginning of a global copper price meltdown that eventually pushed BCL Limited into liquidation in October 2016. Sandfire has thus far invested $360 million (P4.9 billion) into developing Motheo with another $60 million (P800 million) due to be invested in the ramp-up to 2025.
The firm’s board is also due to consider a solar renewable installation as part of environment and sustainability commitments, which is expected to cost another $30 million (P404 million). The addition of Motheo, however, is expected to contribute revenues of up to $350 million next year and up to $400 million from 2025. Data from Statistics Botswana points out that copper came in as the second principal export in Q2 of 2023 with a total contribution of 8.1% following diamonds that topped the list with over a total contribution of 82.4%.
