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MMG to acquire Khoemacau Copper Mine

Published by , Editorial Assistant
Global Mining Review,

MMG Limited has announced that it has entered into a Share Purchase Agreement (SPA) to acquire the parent company of the Khoemacau Copper Mine in Botswana, for an effective Enterprise Value of US$1875 million.

Khoemacau is one of the highest quality new copper mines globally. The transaction aligns to MMG’s strategy to build a portfolio of high-quality mines supplying the minerals most important to a decarbonised world.

Key Highlights:

  • Annual copper equivalent production of 50 000 – 65 000 t with a near term expansion to 135 000 – 155 000 t.
  • Long life operation, with a mine life well in excess of 20 yrs and C1 costs in bottom half of the cost curve post expansion.
  • Dominant land holding in the emerging, highly prospective Kalahari Copper Belt, with a 4040 km2 tenement package. Mineral Resources of 6.4 million t contained copper and 263 million oz contained silver.
  • Stable and world-class mining and investment jurisdiction in Botswana.
  • Highly skilled team that has successfully developed, ramped up and operated the mine from the discovery of Zone 5 in 2012 to first production in 2021.

MMG Chairman Jiqing Xu commented:

“The acquisition of Khoemacau mine is an important step in achieving our vision of creating a leading international mining company for a low carbon future and will create meaningful long-term value for our shareholders. Khoemacau is a high-quality operating mine with a strong expansion case, located in one of the most prospective mining regions in Africa, the Kalahari Copper Belt, in Botswana, and capable of supporting global supply chains. This transaction aligns with our strategy to pursue value-accretive external opportunities, while continuing to drive significant organic growth opportunities across existing operations.”

Mr Xu said that the acquisition will create long-term value for shareholders and underscores the company’s confidence in copper as a commodity with a strong forward demand as the global energy transition accelerates.

MMG Interim CEO Liangang Li, emphasised the company’s strong forward growth outlook and commended the mine’s current owners who have advanced the mine from exploration to development and operation, thanks to the support from experienced management, skilled workforce, and tier 1 partners.

“We are excited to expand our interests in copper as we see attractive growth opportunity in this sector. We look forward to working with the talented Khoemacau team, which has done an exceptional job of building this asset from exploration to production, establishing a high-quality operation with a highly motivated and largely Batswana workforce, as well as a strong safety performance and good stakeholder relationships. We look forward to continuing the next chapter of this story.”

“Together with the next stage of development at Las Bambas and the completion of the Kinsevere Expansion Project, the acquisition of Khoemacau will significantly increase our copper production and build opportunities for our people, host communities, and shareholders.”

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African mining news Copper mining news