Australian-headquartered MMG has confirmed the formation of a share purchase agreement (SPA) for the acquisition of the Khoemacau operation in Botswana, which it said is one of the world’s highest quality new copper mines.
The deal, worth US$1.875 billion, was confirmed 21 November and gives MMG access to a long-life operation – in excess of two decades – in a world-class mining and investment jurisdiction and within the prolific Kalahari Copper Belt.
Khoemacau completed construction in June 2021 at full run rate, then completed ramp-up of current operations to full production in Q422. The mine’s products are sold to a global customer under an existing three-year third-party offtake arrangement.
MMG chairman Jiqing Xu said the acquisition of Khoemacau is an important step in achieving its vision of creating a leading international mining company for a low carbon future.
“[It] is a high-quality operating mine with a strong expansion case, located in one of the most prospective mining regions in Africa…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.”
MMG interim CEO Liangang Li added: “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.
Source: mmg.com