Motheo processing plant expansion, Botswana – update

5th August 2022 By: Sheila Barradas - Creamer Media Research Coordinator & Senior Deputy Editor

Motheo processing plant expansion, Botswana – update

Photo by: Bloomberg

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 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 Motheo project has a total mine life of 12.5 years.

Potential Job Creation
Sandfire reported in July 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 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
Subject to the granting of the mining licence for A4 and the timing of the award of contracts, site construction activities are scheduled to start in the first quarter of the 2023 financial year. Following construction and plant expansion commissioning, first copper concentrate production is expected in the first quarter of the 2025 financial year, 24 months from the start of site works.

Latest Developments
Sandfire continues to make excellent progress on the Motheo copper mine.

Construction activities are well advanced with more than 7 000 m3 of concrete poured to date.

The project also remains on schedule, despite the global labour and supply challenges, with first production from the 3.2-million-tonne-a-year base case project on track for the June 2023 quarter.

The definitive feasibility study for the expansion of Motheo to 5.2-million tonnes a year remains on track for completion in the September quarter. 

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Sandfire Resources, tel +61 8 6430 3800.