Copper miner Sandfire Resources has been granted a mining licence for its Motheo copper mine, in Botswana.
The ASX-listed announced this month that the mining licence was the final permitting hurdle for the A$279-million project, where mining is expected to start in early 2022, with first production targeted for early 2023.
“We are absolutely delighted to now be in a position to move to full-scale construction at Motheo, with our construction crews expected to mobilise to site over the next few weeks,” said Sandfire MD and CEO Karl Simich.
“Motheo is expected to generate approximately 1 000 jobs during construction and 600 full-time jobs during operations and represents the foundation for Sandfire’s long-term growth plans in Botswana.
“Our vision is that Motheo will form the centre of a new, long-life copper production hub in the central portion of the world-class Kalahari copper belt, where we hold an extensive ground holding spanning Botswana and Namibia.”
Definitive feasibility work on the T3-Motheo project previously confirmed economic and technical outcomes of a 3.2-million-tonne-a-year operation, which would produce an average of 30 000 t/y of contained copper and 1.2-million ounces a year of contained silver over the first 10 years of the 12.5-year mine life at relatively low capital intensity and robust operating margins.
The project would generate some $664-million in pretax cash flows and $987-million in earnings before interest, taxes, depreciation and amortisation over the first ten years of operations, at a cost of $1.76/lb.