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MMG to acquire Khoemacau Copper Mine in Botswana

  • Annual copper equivalent production of 50 to 65 thousand tonnes with a near term expansion to 135 to 155 thousand tonnes
  • Long life operation, with a mine life well in excess of 20 years 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 4,040 km2 tenement package. Mineral Resources of 6.4 million tonnes contained copper and 263 million ounces 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.”

Completion of the transaction is expected to occur in the first half of 2024.

Macquarie Capital and Citigroup acted as joint financial advisors to MMG on this transaction.

Please find the full copy of the Acquisition Announcement available for download here, and the presentation slides pack with summary of the project can be downloaded here.

About MMG

Founded in 2009, MMG’s vision is to create a leading international mining company for a low carbon future. The company is headquartered in Melbourne, Australia and listed on the Hong Kong Stock Exchange (HKEX1208). MMG operates and develops copper, zinc and other base metal projects across Australia, the Democratic Republic of Congo and Peru.

About Khoemacau

Khoemacau is a copper and silver mining company located in Botswana which in June 2021 completed construction of its low cost, c.60ktpa copper and c.1.6Mozpa silver metal in concentrate at full run rate. It completed ramp up of current operations to full production in Q4 2022. Drilling of and studies on its expansion project forecast a potential increase production to over 130ktpa copper and 5Mozpa silver (average run rate at full production) to unlock the full potential of its prized position in the emerging Kalahari Copper Belt. Khoemacau’s products are sold to a global customer under an existing three year third-party offtake arrangement.

Calculated on a cash-free and debt-free basis as at the locked box date of 31 March 2023. Refer to the Hong Kong Stock Exchange announcement for full details.  Between the locked box date and completion, MMG will pay an interest amount of between US$148 million and US$188 million and will also be entitled to the cash flows and economic benefits derived from the business during this time.

According to statements published by Khoemacau which are available at