ASX-listed Perenti’s underground mining business, Barminco, has finalised discussions with Khoemacau Copper Mining, a subsidiary of MMG, to extend and expand an existing mining services contract for the Khoemacau copper mine, in Botswana.
Khoemacau is one of the highest-quality copper mines globally, with a strong case for expansion to meet growing global copper demand, says Perenti.
Barminco has been operating at Khoemacau since the mine started operations in 2019.
Barminco is working to deliver on the current mine plan, while MMG explores potential expansion opportunities at Khoemacau.
Perenti says Botswana is considered to be one of the most attractive mining jurisdictions in Africa and is rated investment grade by both Moody’s and S&P Global.
The company says the remaining contract is valued at about A$240-million and is a continuation of the existing contract, on revised terms, until June 30, 2025.
“We are pleased to continue working at Khoemacau. The expansion under consideration has the potential to supply increasing global demand for copper and we are proud to be working with MMG as they assess various future opportunities,” says Perenti MD and CEO Mark Norwell.
“The continuation of this contract enables the Barminco team to continue working at Khoemacau under revised terms. The region surrounding the operations includes multiple resources beyond the current scope.
“Cumulatively, these resources have potential to support much higher production and maintain many years of mine life. We look forward to working with MMG to continue high-quality operations at Khoemacau,” adds Perenti contract mining president Gabrielle Iwanow.