GNRI considers sale of $1.5bn Botswana copper mine
Private equity firm GNRI is considering options for its Khoemacau copper mine in Botswana including a possible sale, people familiar with the matter said.
The resources-focused investment firm is working with an adviser to identify potential suitors for the asset, the people said, asking not to be identified as the matter is private. A deal could value the asset at about $1.5-billion, the people said.
Three-month copper futures have gained about 2% on the London Metal Exchange this year. Khoemacau could attract interest from large miners seeking to expand their copper portfolios, according to the people.
Demand for copper assets has been strong thanks to hopes of a global economic recovery as well as the scarcity of sizeable projects coming on the block. Last year, Australia’s Sandfire Resources agreed to buy a copper mining complex in Spain from Mubadala Investment and Trafigura Group for about $1.9-billion.
No final decisions have been made, and there’s no certainty the deliberations will lead to a transaction, the people said. A spokesperson for Khoemacau declined to comment, while a representative for GNRI didn’t respond to requests for comment.
The Khoemacau mine, which started production in June last year, is situated in the Kalahari copper belt that stretches from northeast Botswana to western Namibia. It’s been ramping up to a planned annual production level of 60 000 metric tons of copper and two-million ounces of silver, according to its website.
Khoemacau is majority owned by an arm of GNRI, also known as Global Natural Resource Investments, which was formed from a 2015 management buyout of Barclays Plc’s natural resources private equity business. Resource Capital Funds also owns an interest in the operations.
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