Diversified mining services company Ausdrill Ltd has announced its subsidiary, leading hard-rock underground miner Barminco, has been awarded a five year underground mining services contract at the Zone 5 Mine in Botswana from Khoemacau Copper Mining (Pty) Ltd (Khoemacau) worth approximately A$800 million. The mining project is 100% held by Cupric Canyon Capital.

Ausdrill Managing Director Mark Norwell said: “We are very pleased to have been awarded this significant contract in Botswana, a highly desirable country to do business in Africa. This contract award is further endorsement of our acquisition of Barminco and its strong contribution to our international growth strategy.”

Khoemacau’s Zone 5 operation is a new, large and long-life mine development project located in the highly-prospective Kalahari copper belt in Botswana. Barminco’s scope of services includes mine development, establishment of underground mine infrastructure, diamond drilling and mine production at an initial rate of 3.6 Mt per annum of copper ore with multiple expansion opportunities. Subject to closing of the Khoemacau Project funding, which is expected shortly, Barminco will commence mining services in December 2019.

In awarding the contract, Cupric Canyon Capital and Khoemacau Chief Executive Officer Johan Ferreira said: “We are delighted to partner with Barminco at Zone 5 to create a safe, large-scale, highly productive and fully mechanised mine, delivering high quality employment and sustainable skills development and employment outcomes for Botswana citizens.”

Barminco Chief Executive Officer Paul Muller said: “In addition to excellent safety, quality and productivity outcomes at Zone 5, success will also be measured by the creation of a highly skilled local workforce through effective training, skills transfer and leading technology programs.”