Australians to exit Khoemacau Mine in June
After six successful years under Botswana soil, Australian mining services group, Perenti’s time in Toteng is nearly up.
A mainstay at Khoemacau Copper Mine since developments began in 2019, through its underground mining arm, Barminco, the company expects to exit the MMG-run mine by the end of June.
According to Perenti Chief Executive Officer (CEO), Mark Norwell, the decision was motivated by financial constraints. “We have appreciated the opportunity to work on the Khoemacau Copper Mine and wish MMG well with their expansion plans. As outlined during our half-year results, the financial performance at Khoemacau has not met our internal performance hurdles and we must maintain our commercial discipline to enable consistent returns through economic cycles,” he explained. “Operationally, our team has done an outstanding job!” added Norwell.
Under the agreement, all on-site equipment will be sold to Khoemacau Copper Mining, a subsidiary of Hong Kong-listed MMG, with final valuations to be determined according to a pre-agreed formula.
Perenti President of Contract Mining, Gabrielle Iwanow said the company leave Botswana having made a lasting mark. “I trust that the high standard of training we initiated, including training some of the very first underground mine operators in the country, will leave a legacy for the hundreds of Batswana citizens we have worked alongside for the past six years,” she said, adding Perenti will continue to support MMG during the transition phase to ensure a safe, uninterrupted handover of underground operations.
Meanwhile, Khoemacau reported a strong start to 2025, with 10,610 tonnes of copper in concentrate produced in the first quarter, a 4 percent increase from the previous quarter. This was attributed to higher grade ore resulting from the mining sequence. However, production was partially offset by lower ore milled as a result of record rainfall in Botswana – the highest in 50 years!
The copper mining company expects production to improve further in the second quarter (April to June) with the arrival of the dry season. In the third quarter, a mining contractor change will be implemented as Perenti bow out. “The company will actively monitor and manage the transition to focus on safety and minimise short-term impacts on production,” reported Khoemacau.
In line with prior production guidance, Khoemacau copper output for 2025 is expected to be between 43,000 and 53,000 tonnes. If all goes to plan, production is anticipated to rise to 60,000 tonnes annually by 2026/27. This will be achieved by utilising the existing 3.65 Mtpa process plant, with focus on accessing the mine’s higher-grade areas through increased mining fronts and operational flexibility.
Production will be further supported by the installation of primary vent fans, expected by the end of April, and the ongoing construction of a paste fill plant to enhance extraction rates. C1 costs [the basic cash costs of running a mining operation] are expected to improve as operation scales up.
MMG ultimately intend to expand the mine’s capacity to 130,000 tonnes of copper concentrate per annum by building a new 4.5 Mtpa process plant, increasing Zone 5 output, and developing the expansion deposits. Construction is scheduled to begin in 2026, with first concentrate production in 2028 and a projected C1 cost of US$1.55/lb at full capacity, subject to the outcomes of a feasibility study.
