Chinese mineral mining company MMG is planning to increase production by injecting additional capital into the Khoemacau copper mine, acquired last March. Khoemacau, the largest copper mine in Botswana, is expected to become a significant resource for MMG’s metal procurement in the future.
On the 14th, industry sources reported that MMG plans to invest $700 million in the Khoemacau copper mine to double production as part of its growth strategy.
The Khoemacau mine is underway to increase its copper production from the current 60,000 tons to 130,000 tons. Silver production is also expected to rise from 1.6 million ounces to 5 million ounces annually. The workforce will expand from 1,700 to 2,800 employees.
Executive Director of the Khoemacau Mine Johan Ferreira stated, “MMG is fully committed to the expansion project,” adding, “We expect the first ore to be produced from the last quarter of 2027.” In November of last year, MMG signed a contract to acquire Cuprous Capital, the exclusive owner of the Khoemacau mine, for $1.88 billion and completed the related work last March.
The Khoemacau mine is located in the Kalahari Copper Belt, which stretches from the northwest of Botswana to the west of Namibia. The belt is one of the emerging regions for copper and silver, with most of it still unexplored. The Khoemacau mine is known to have copper reserves that can be used for over 20 years.
Due to the rise in international copper prices, experts predict that the Kalahari Copper Belt will help diversify revenue beyond diamond mining, which accounts for over 70% of Botswana’s exports. MMG is focusing on securing additional revenue sources through this investment in the Khoemacau mine. In 2014, it acquired a 62.5% stake in the Las Bambas copper mine in Peru, owned by Glencore Xstrata, through a Chinese consortium for $5.85 billion.
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