Photo by: Sandfire Resources
Name of the Project
Motheo processing plant expansion.
Location
Botswana.
Project Owner/s
Sandfire Resources.
Project Description
A prefeasibility study (PFS) has confirmed the strong business case for the development of the Motheo project’s A4 deposit as part of the expanded 5.2-million-tonne-a-year Motheo production hub strategy.
The A4 deposit has estimated openpit ore reserves of 9.7-million tonnes grading 1.2% copper and 18 g/t silver.
The A4 PFS outlines the first additional satellite deposit to the Motheo copper mine, expanding plant production from 3.2-million tonnes a year to 5.2-million tonnes a year over its five-year mine life. Estimated copper production contained in concentrate over the life of the A4 openpit is estimated at 105 000 t.
Mine facilities include surface mining operations at the A4 deposit, expansion of the processing plant and supporting infrastructure.
The project has a total mine life of 12.5 years.
Potential Job Creation
Sandfire reported in August 2022 that there were more than 1 700 personnel on site.
Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 7% discount rate, of $682-million and an internal rate of return of 36%, with a payback of 2.9 years from the start of production.
Capital Expenditure
Total preproduction development capital has increased to $366-million, incorporating the development costs for the A4 openpit and an updated cost forecast for the Motheo plant to account for increased steel costs, foreign exchange movements and Covid-19-related disruptions.
Planned Start/End Date
First production is expected in the June quarter of 2023.
Latest Developments
Contractor Perenti’s African surface mining business African Mining Services (AMS) has been awarded a $235-million contract from Sandfire Resources at the Motheo copper project.
Under the terms of the contract, AMS will deliver all surface mining services associated with the development and production activities at the A4 openpit. The contract will run for a term of 73 months.
Preproduction and development work at A4 is expected to start in September, with prestrip mining to start in October.
Key Contracts, Suppliers and Consultants
African Mining Services (delivery of all surface mining services associated with the development and production activities at the A4 openpit).
Contact Details for Project Information
Sandfire Resources, tel +61 8 6430 3800.