Perenti Global Ltd has finalized the contract for the provision of opencast mining services with Tshukudu Metals Botswana (Pty) Ltd at the Sandfire Resources Motheo Copper Project in Ghanzi, Botswana.
The Motheo Copper Project is an open-pit mine being developed in Western Botswana by Sandfire Resources, a mining and exploration company based in Australia. The project mainly involves the development of the T3 deposit located in the Kalahari Copper Belt.
Completed in December 2020, the definitive feasibility study (DFS) for the project confirmed the potential to develop an open-pit mine with an estimated life of mine (LoM) of 12.5 years.
Terms
The finalised contract is valued at US$493 million (100% basis) over an initial term of seven years and three months, with a provision for a one-year extension. As noted in the release dated 9 June 2021, the finalisation of the contract was contingent on the satisfaction of two primary conditions, both of which are now satisfied.
AMS continues to progress the identification of a suitable joint venture partner from within the Botswana business community to support the project. AMS expects to have the joint venture established before the commencement of mining works in early 2022.
“The finalisation of the Motheo contract with Sandfire is an important milestone that will support our engagement with potential Botswanabased joint venture partners, who we will work with ahead of the start-up of mining activities in early 2022. We have commenced mobilising heavy equipment to site and our team are looking forward to working with Sandfire on what will be a significant project in a very prospective and emerging copper mining province,” Mark Norwell, Managing Director and CEO of Perenti, said.
