MMG Limited (MMG) has entered into a two-year Logistics Agreement with Minmetals Shipping (Singapore) Pte Ltd, a wholly owned subsidiary of China Minmetals Corporation (CMC), to support the planned expansion of the Khoemacau copper mine (KCM Mine) in Botswana.
The agreement, signed on 4 June 2026, designates Minmetals Shipping as one of three contractors—alongside two independent third-party providers—to supply international sea and overland shipping, logistics and transportation services to the project. Service providers will be selected on a shipment-by-shipment basis through competitive quotations every two weeks, with work awarded to the lowest bidder for each batch.
Key commercial terms include US dollar-denominated freight rates benchmarked to prevailing international market levels, encompassing all port charges, pilotage, and agents’ fees. Additional elements such as laytime, demurrage and despatch are also negotiated in line with current market rates. Payments are due within 30 days of completing each shipment batch.
Annual transaction caps under the agreement are set at US$4.00 million for the seven months ending 31 December 2026, US$15.00 million for the full year 2027 and US$6.00 million for 2028. These limits assume Minmetals Shipping secures all tendered volumes during the contract term and reflect projected international freight rates for comparable services in Peru and Australia.
Because Minmetals Shipping is an associate of CMC, MMG’s ultimate controlling shareholder, the arrangement constitutes a continuing connected transaction under Chapter 14A of the Hong Kong Listing Rules. All relevant percentage ratios fall between 0.1 % and 5 %, requiring disclosure, reporting and annual review but not independent shareholders’ approval.
MMG’s board—excluding directors holding positions with CMC—has determined that the terms are on normal commercial grounds, competitive with those offered by independent bidders and in the interests of the company and its shareholders. Internal controls include ongoing monitoring of pricing and utilisation against the annual caps, independent non-executive director review and annual confirmation by the external auditor.
The Khoemacau project forms part of MMG’s global portfolio, which focuses on the exploration, development and mining of copper, zinc, gold, silver, cobalt, molybdenum and lead deposits worldwide. Minmetals Shipping operates a fleet of more than 20 vessels across Handy to Capesize classes, specialising in dry bulk and project cargo logistics.
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