MMG (01208) has announced the approval of the feasibility study for a major expansion of the Khoemacau copper mine in Botswana, formally initiating construction. This project aims to increase annual production capacity to 130,000 tonnes of copper contained in copper concentrate, while boosting associated silver output to over 4 million ounces per year. The expansion will involve extending the mining area to include the Zone 5 North, Mango, and Northeast Zeta deposits, and constructing a new concentrator with an annual processing capacity of 4.5 million tonnes. This upgrade will raise the mine's total ore processing capacity to over 8 million tonnes per annum.
The total capital expenditure for the project is estimated at approximately $900 million, which includes related expenditures up to 2026. The expanded operation is expected to produce its first batch of copper concentrate in the first half of 2028. The expansion is projected to optimize the mine's average C1 cost over its life to below $1.60 per pound, a significant reduction from the actual C1 cost of $2.05 per pound achieved in the six months ended June 30, 2025.
This expansion is a key strategic initiative designed to enhance the long-term profitability and scale of the company's copper asset portfolio. Looking ahead, ongoing exploration activities at the Khoemacau site have identified potential for further expansion, with the possibility of increasing annual capacity to 200,000 tonnes of copper. The company plans to commence a pre-feasibility study for the next phase of expansion in 2026.
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