Motheo processing plant expansion, Botswana – update
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
Sandfire Resources has secured a mining licence extension at its Motheo copper mine.
The miner recently opened the mine and is working to ramp up its initial throughput rate to 3.2-million tonnes, to produce 30 000 t/y of contained copper and 1.2-million ounces of contained silver over the mine’s life.
Sandfire is working to increase production capacity to 5.2-million tonnes a year, which will increase yearly copper production to 50 000 t by 2025.
The development and mining of the A4 deposit is now targeted for the September quarter of 2024, expanding the footprint from the current T3 openpit.
“Approval of the extended mining licence is a critical step for our newest mine and we look forward to seeing the higher-grade A4 Pit contribute to the expanded Motheo mining complex, which is expected to produce more than 50 000 t of contained copper in the 2025 financial year,” Sandfire MD and CEO Brendan Harris has said.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
Sandfire Resources, tel +61 8 6430 3800.
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