Melbourne-headquartered resources company MMG has entered into an agreement to acquire Khoemacau Copper Mining, which owns and operates the Khoemacau copper and silver mine, in Botswana.
MMG chairperson Jiqing Xu says the addition of the mine to MMG’s international portfolio delivers on the company's growth strategy and vision to build a global diversified minerals and metals company.
MMG already operates the Dugarld River zinc mine and the Rosebery polymetallic mine, in Australia; the Kinsevere copper mine, in the Democratic Republic of Congo; the Las Bambas mine, in Peru; and the Izok Corridor development project, in Canada.
Khoemacau and MMG point out that about $1-billion has been invested in the development of the Botswana mine over the past 12 years.
Khoemacau has been assessing the proposed expansion of the mine to produce more than 130 000 t/y of copper and five-million ounces a year of silver, from the current output of about 60 000 t/y of copper and 1.6-million ounces a year of silver.
With a prefeasibility study on the Khoemacau expansion and a solar power project now completed, the focus will turn to a feasibility study into the expansion.
This, along with extensive exploration opportunities across the licence area, positions the mine for an exciting new phase, the companies state.
"Khoemacau has significant expansion potential and we look forward to working with the current team to make Khoemacau’s potential a reality," Xu says.
“We would like to thank the current owners, who as custodians of Khoemacau over many years successfully transformed the company from a development idea to a fully-fledged operating copper mine. Having successfully completed the ramp-up of the Zone 5 [underground mine and the Boseto processing] operations, the company will now be focused on the expansion study, which will seek to double production.
"We are excited by Khoemacau’s future with MMG, who share our vision for the expansion and have the capacity to support the significant investment needed to realise Khoemacau’s full potential, working with our team," adds Khoemacau Copper Mining CEO Johan Ferreira.
MMG's acquisition of Khoemacau, for an undisclosed amount, is expected to close in the first half of 2024.