Motheo copper mine project in Botswana on track

Copper miner Sandfire Resources is on track to start first production at its Motheo copper mine, in Botswana. Sandfire MD and CEO Karl Simich said the company has faced a number of challenges. However, they have managed to keep the project firmly on track, on time and on budget and. They have over 1 000 people working on site with the number expected to to increase to 1 500 over the course of the year.

Motheo copper mine

“Motheo is one of the few new long-life copper mines under construction and, together with our recently acquired MATSA Mining Operation in Spain, will be a key driver of Sandfire’s growth into the future. We are looking forward to seeing this substantial new copper mine rapidly take shape. We are also looking forward to the completion of the 5.2-million-tonne-a-year Motheo expansion case definitive feasibility study next quarter, which will define our rapid growth pathway as soon as production commences,” said Sandfire MD and CEO Karl Simich.

The base-case operation would require a capital investment of $259-million, and based on a 3.2-million-tonne-a-year operation, delivering 30 000 t/y of contained copper and 1.2-million ounces of contained silver over an initial mine life of 12.5 years.

The Motheo copper mine is being funded by Sandfire through a combination of cash and project debt. Credit committee approved offers for debt financing of the $160-million required for the base case development have now been received from the company’s short-list of potential international lenders. The selection of syndicate banks and finalisation of terms will be completed during the March quarter.