Tag Archives: Botswana

Debswana board approves ~$1 billion investment in Jwaneng underground diamond project

The Board of Debswana, the 50:50 diamond mining joint venture between De Beers Group and the Government of the Republic of Botswana, has announced approval of the investment for a key development phase of the Jwaneng underground project, paving the way for one of the world’s most valuable diamond mine to transition from open pit to underground operations.

The circa-$1 billion investment in this phase of works, known as the Exploration Access Development Phase, is for establishing a drilling platform to facilitate comprehensive sampling of the kimberlite pipes, delivering the early access decline for the underground mine and developing essential infrastructure to support forthcoming stages of the project.

The initial works, to start in May 2024, follow the successful completion of feasibility studies.

Following the Exploration Access Development stage, the project will be developed in two further phases, Phase 1 mining and Phase 2 mining, to support long-term future production at the mine in an environment of tightening long-term diamond supply.

De Beers Group CEO and Debswana Deputy Board Chairman, Al Cook, said: “Jwaneng stands proudly as the world’s greatest diamond mine. It is a central pillar of both the Botswana economy and the De Beers Group business. The global supply of natural diamonds is falling, so moving forward with the Jwaneng Underground Project creates new value for investors, brings new technology to the country, creates new skills for our workforce and provides new gems for customers around the world. This investment is aligned with our strategy to prioritise investments in the highest quality projects. We are proud to work in partnership with the Botswana Government in creating a bright future for Debswana.”

Since 1982, when the Jwaneng Mine started operating, it has produced an annual average of almost 11 Mct/y. Currently the mine employs 2,100 permanent employees and 3,200 contractors. Pending relevant future Debswana Board approvals, the Jwaneng underground project will ensure a long-term future for the mine while creating new jobs in Botswana and ensuring Debswana continues to make a significant contribution to Botswana’s economy, De Beers says.

Perenti’s AMS to add A4 open pit services to Sandfire Motheo copper mine contract mining works

Perenti Limited’s surface mining business in Africa, African Mining Services (AMS), has been awarded the contract for open-pit mining services at the Sandfire Resources A4 open pit within the larger Motheo copper mine in Ghanzi, Botswana.

The contract is valued at $235 million over a term of 73 months.

Under the terms of the contract, AMS will deliver all surface mining services associated with development and production activities at the A4 open pit.

The A4 open pit is located around 8 km to the west of Sandfire’s existing T3 open pit, where AMS has successfully progressed from development into production works. Perenti anticipates A4 pre-production and development work to commence in September 2023, with pre-strip mining to start in October 2023.

The T3 and A4 open pits are expected to be operated as a larger, integrated mining operation and, therefore, will leverage the resulting benefits of scale and the operational synergies to optimise the return on capital aligned with our financial targets. The primary synergies include the optimisation of existing infrastructure, mining equipment, maintenance facilities and both technical and operational management.

Mark Norwell, Managing Director & Chief Executive Officer of Perenti, said: “We are excited about the opportunity to expand our partnership with Sandfire Resources. Motheo is a long-life asset in the Kalahari Copper belt, and
the expansion of our role here is in keeping with our strategy of disciplined growth within top-tier mining jurisdictions with high quality partners. Sandfire is now one of our largest clients and over the term of the combined contracts, the T3 and A4 open pits are expected to generate total revenue of over A$1.1 billion, delivering strong returns for Perenti and its shareholders.”

Paul Muller, President of Contract Mining, said: “Since Barminco commenced operations in 2019 and AMS later in 2021, Perenti has established itself as the leading international mining contractor in the Kalahari Copper belt. With the award of our third mine in the region, we look forward to playing our part in Sandfire’s expansion of their world-class Motheo copper mine. Beyond this, I am proud of the contribution Barminco, AMS and Perenti continue to make to the development of Botswana’s mining industry and the community more broadly.”

WEC Projects to help trap sediment at Lucara Diamond’s Karowe mine

Following its successful expansion of the sewage treatment plant at the Lucara Diamond’s Karowe mine in Botswana, WEC Projects has secured further orders from the client, it says.

This time, it has been engaged for the design and construction of a sedimentation trap, tanker filling station and associated infrastructure, including storm water drains and fencing.

Karowe, where a 1174.76 ct, high-quality white gem diamond, the third largest found in Botswana, was recently recovered, is near the village of Letlhakane in the arid eastern Kalahari Basin where temperatures average 35°C. As a result, water is scarce, so much so that the Government of Botswana has imposed severe water restrictions on companies operating in the region.

WEC Projects originally designed and built artificial wetlands which the mine uses to treat its effluent, removing contaminants such as BOD, ammonia, suspended solids and heavy metals, to a standard for reuse as process water.

The new sedimentation trap will be used in the water recycling process of the mine’s drilling operations. The effluent is pumped from the underground drilling areas to a concrete trap and clarification unit where it is dosed with alum and a polymer to enhance the settling of the solids. The effluent overflows from the trap to the plant’s oil skimmer to remove floating oil. The system treats an average of 34 cu.m/d of effluent but can be expanded up to 150 cu.m/d, if required, according to WEC Projects.

The polished water is drawn from the tanker station and disinfected by dosing chlorine. Although the water is not suitable for human consumption, it is reused in applications such as dust suppression.

WEC Projects Contracts Manager, Ruan Kellerman, said: “This project is a fairly standard one for WEC Projects, except for the wetlands section which was certainly the largest of its kind we have undertaken. Our clients, many of whom are located in some of the driest and hottest areas of Africa where water is scarce, rely on us to come up with agile solutions for water reuse. We can provide solutions capable of treating water to process water reuse standards all the way up to potable standards.”

WH Auctioneers and Ritchie Bros to hold Majwe Mining JV equipment auction

In conjunction with WH Auctioneers, Ritchie Bros is supporting a mining equipment auction in Jwaneng, Botswana, this week, with assets coming from the end-of-mine contract of the Majwe Mining Joint Venture.

The Botswana Mining Machinery Live Auction will be held on July 8.

“The two companies bring unrivalled expertise and experience in their respective fields,” Finlay Massey, Sales Director APAC, Ritchie Bros, said. “This is a live auction in Botswana with online bidding, hosted by WH Auctioneers with the support of Ritchie Bros. expertise, marketing efforts and our global database of buyers, which is second-to-none.”

On offer are Caterpillar 777D 85,000-litre water trucks, Caterpillar 834H and 854K wheel dozers, Caterpillar D10T tracked dozers, Caterpillar 16M motor graders, a Caterpillar 336DL tracked excavator, Terex TA100 and TA60 rigid dump trucks, Hyster 25 tyre handler, a Komatsu D375-5 tracked dozer, a Caterpillar 966 wheel loader, a Komatsu WA600 loader, Bell B20 articulated dump trucks, Manitou MHT780 and MRT2540 telehandlers, Atlas Copco drill rigs, crushers and screens, Lincoln Electric Vantage 500 welder/generators, and trucks and light delivery vehicles.

The auction will be conducted live on-site in Jwaneng, Botswana, on July 8 at 10:30AM SAST with webcast bidding available for overseas buyers. Those interested in bidding are urged to register to bid before the auction.

Back in 2019, the Majwe Mining Joint Venture was awarded a A$1.7 billion contract at Debswana Diamond Co’s Jwaneng Mine Cut-9 project in Botswana.

Majwe, a JV between Thiess (70%) and long-term local partner Bothakga Burrow Botswana (30%), was to provide full scope mining services over nine years, including drill and on-bench services, mine planning, equipment maintenance, load and haul, and mining operations.

In 2021, the contract was terminated by Debswana, with the Cut 9 operation transitioning to an owner-mining operation.

Botswana diamond mine feels the impact of Weba Chute Systems custom solution

Faced with a challenge of large rocks in the run-of-mine (ROM) feed regularly damaging main support structures, chutes and a grizzly feeder, a diamond mine in Botswana reached out to Weba Chute Systems to design a solution to overcome this costly challenge, which included major safety hazards.

According to Hilton Buys, Regional Manager at Weba Chute Systems, the mine’s existing chutes at the ROM section were cracking and breaking under the barrage of heavy kimberlite rocks measuring up to 1 m in diameter.

“Even the robust grizzly feeder could not withstand the impact of these rocks, which were free-falling about two metres from an apron feeder before contact,” Buys said. “Apart from the costs incurred by this damage, the transfer points were posing a significant safety hazard to mine employees.”

The solution – designed and manufactured at Weba Chute Systems’ Wadeville facility – was a special four-tonne swing door in a discharge chute, feeding from the apron feeder to the grizzly. The heavy, fabricated door is strong enough to withstand the impact while absorbing the energy of the falling rocks before allowing them to drop onto the loading section of the grizzly. The feed can then move in a more controlled manner over the grizzly into the crusher below.

“The key principle was for the door not to give way easily, thereby reducing the velocity and momentum of the large chunks,” Buys said.

There was also a design requirement to accommodate the movement of smaller rocks. This was dealt with through the addition of a second door, to also ease these rocks onto the grizzly to ensure a more gradual feed into the crusher feed chute. The success of the design, which is based on the Weba Chute Systems principle of controlled flow, has been demonstrated in the chute’s ability to operate with very little maintenance, he says. The only components needing regular attention are chute lips and swing door rails.

“We also included some specific design elements in the crusher feed chute, by installing impact rubbers,” Buys said. “Any rocks that may diverge from the main flow stream will then strike this rubber, minimising the vibration and impact on the body of the chute and are still able to drop gently into the crusher.”

Following on the success of this design, the solution was repeated at other customers’ sites, including mines in the Northern Cape which experienced similar challenges.

Weba Chute Systems solves choking problem at Botswana diamond mine

Weba Chute Systems has come to the rescue of a large Botswana diamond producer suffering from continuous chute maintenance with a customised solution that came with a 12-month guarantee.

This primary crusher discharge chute had been a headache for the company, with the crunch coming when, after considerable capital expenditure, the new conventional chute needed maintenance just six weeks after installation.

Hilton Buys, Regional Manager at Weba Chute Systems, said: “This could not continue and the mine needed a long-term solution which is why we believe they came to us for a proposal. Senior experts from our company visited the site to take a careful look at the conditions the chute needed to deal with, and we took our conclusions back to our design office.”

Among the challenges were large lump sizes in the ore stream, contributing to build-up of material in the chute and regular choking, Buys said. Also, while Botswana’s dry season is long, the rain that does fall causes considerable problems to the flow dynamics. The kimberlite on the mine – depending on which part of the pit it comes from – can become very sticky in wet weather, according to the company.

“We therefore had to pay particular attention to flow angles, and the design had to effectively accommodate both wet and dry conditions,” Buys said. The concept design – which included quick-release lips on dead boxes – was approved by the mine and the final design, manufacture and successful installation was conducted.

Adding to the complexity was that the feed end of the primary crusher was some 8 m below ground level, while the crusher itself stood about 10 m tall. The chute had to be positioned below the rock box, which stores the material from the crusher discharge, channelling the stream into the Weba chute at a transfer height of 9 m to the conveyor belt.

“The conventional chute also created excessive dust through uncontrolled rock velocity over this considerable transfer height,” Buys said. “By contrast, our chute’s controlled flow meant that the mine did not even have to apply its dust suppression system.”

After installation, Weba Chute Systems gave the customer a 12-month guarantee on this chute, as it does with all its new chutes. This guarantee, which comes with regular inspection reports, assures the customer that the performance will meet their expectations.

“These inspections allow us to monitor wear, so we can advise the customer on what action is required so that they can schedule maintenance and avoid unexpected downtime,” Buys said.

Installed in 2017, the chute is still operating with little maintenance, having been delivered at a highly competitive price compared to the one it replaced.

“Designing a long-lasting chute is not just about creating a box with some reinforcing where you think there will be wear,” Buys said. “It is an endeavour that must be scientific, based on in-depth analysis of material and flow conditions.”

Buys highlighted the importance of asking a range of technical questions about the specific application so the design answers those needs. The latest software and modelling tools are then applied by the Weba Chute Systems team to guide the most effective design.

UMS gearing up for shaft sinking work at Karowe Underground

With a team comprising some of the most experienced professionals in shaft sinking, United Mining Services (UMS) says it is gearing up for the pre-sinking of two shafts for the Karowe Underground Mine Expansion Project (UGP) in Botswana.

Following the completion of the feasibility study for the Karowe UGP, UMS was appointed by Lucara Botswana Pty Ltd and JDS Energy & Mining Inc in October 2019 to engineer and design the shaft sinking of the production shaft (8.5 m in diameter), and the ventilation shaft (6 m diameter), both reaching a depth of approximately 750 m below surface.

Fully commissioned in 2012, Karowe is an open-pit diamond mine with operations until 2026. The UGP will extend Karowe’s mine life to at least 2040. At the end of 2020, Karowe’s total probable reserve stood at 53.9 Mt containing 7.4 Mct including stockpiles.

According to Lucara, the Karowe mine remains one of the best producing mines of high quality plus-10.8 ct diamonds, having yielded five of the 10 largest diamonds in recorded history. It is also the only mine to have recovered three diamonds greater than 1,000 ct.

Dr Pieter Louw, Group Executive Project Services at UMS and UMS’ Project Manager, says the company’s wealth of knowledge and expertise in shaft sinking played a key role in securing the contract, and that the company is bringing in the heavyweights in the industry for the project.

Louw, himself, has a long history in underground mining and shaft sinking, having worked for major players in the mining and engineering sectors. He was involved in the De Beers Venetia Underground Project feasibility study, as well as a number of other feasibility projects for mines that are now in development or have already started production.

Louw explains that the two shafts at Karowe will be blind sunk using conventional drill and blast techniques. The production and ventilation shafts will both have equipment installed to pre-sink to a shaft depth of 100 m, if required, to accommodate the main sink shaft equipment. The pre-sink phase also allows the sinking process to commence as soon as possible while the main sink infrastructure is being fabricated and installed.

The new underground mine’s production shaft will have an A-frame type headgear, which will hoist 21-t payload skips, and will have a single drum auxiliary winder for people movement, and a man/material winder with counterweight and a big cage to service the underground.

UMS has refurbished four winders, which will be going to the mine for shaft sinking, including two stage winders and two Kibble winders. The company also purchased and refurbished Scotch derrick winder cranes for the pre-sink.

Louw says that UMS is in the process of mobilising up to 170 people to site for the pre-sink, which is expected to commence at the end of August and will take between eight and 12 months to achieve changeover ready for the start of the main sink. The main sink will take another two years after that, ready for mine development to commence in 2024, and full underground operations in 2026.

To make sinking safer, Louw says that UMS has adopted different sinking methodologies and equipment to be used at Karowe.

“In the past, we used to sink with cactus grabs which needed people in the bottom,” Louw said. “We are now using vertical shaft muckers and are buying state-of-the-art jumbo drill rigs to drill at the bottom. We’re doing inline work as opposed to concurrent work with people working at the bottom.”

He adds that, as part of its safety management plan, UMS has established a training centre on site at Karowe that facilitates inductions and training of local operators on the various equipment. The company is constructing a mock-up training tower on the surface to train operators on vertical shaft muckers and will have a similar training simulator for excavator operators.

Louw says UMS is fully established in Botswana and has partnered with Botswana Investment and Trade Centre to ensure that the project work permits run smoothly. Furthermore, the UMS design engineers are registered with the Botswana certification boards and can sign off all engineering designs and drawings for the project.

UMS to start pre-sinking work at Lucara’s Karowe Underground Expansion project

Lucara Diamond Corp’s Karowe Underground Expansion project (UGP) in Botswana is moving ahead with mobilisation of shaft sinking teams commencing late in June, and pre-sinking activities scheduled in the September quarter.

The Karowe UGP, which is expected to extend the operation’s mine life to 2040, is in a fully-financed position, with the latest schedule expected to see underground production hit full production by the end of 2026.

The 2019 feasibility study for the project envisaged life of mine production of 7.8 Mct, a payback period of 2.8 years and an after-tax NPV (5% discount) of $718 million; all from $514 million in pre-production capital.

COVID-19 delays have pushed the project off the original schedule – both in terms of timeline and cost – but the company says it is now making headway towards a 2026 start to underground production.

Lucara said no “material variances” between the 2019 feasibility study and the current execution plan have resulted, despite the delays.

“Rather, during this period in 2020 and 2021, all critical path items were addressed and a concerted effort was placed on detailed design, engineering and procurement which have helped to significantly de-risk the project,” it said.

Out of the total capital budget, the company has spent $51.4 million on project execution activities through 2020 until the end of June 2021, including shaft and geotechnical engineering, procurement of long lead time and essential shaft sinking items, surface infrastructure and construction activities, bulk power supply power line engineering and procurement.

Mobilisation of the shaft pre-sink team has commenced with shaft pre-sinking on track to commence in the middle of the current quarter.

Detailed engineering and design of the underground infrastructure and layouts will commence this quarter and are expected to be competed in the September quarter of 2022, with no major changes from the 2019 study plan anticipated.

Underground mine development is scheduled to commence in the second half of 2024 with underground production ramp up starting in 2026. Full production is scheduled for the end of 2026.

At the same time, open-pit mining operations have been adjusted to limit the risk of production shortfalls during the ramp up of the underground mine operations commencing in the first half of 2026. The open-pit mine is expected to terminate in mid-2026, Lucara said.

Access to the underground mine will be via two vertical shafts, the production and ventilation shafts. The shafts will be concrete lined with the production shaft acting as the main air intake and the ventilation shaft as the exhaust.

The number of shaft stations and nominal elevations remain the same as the feasibility study, with the planned depth of the production shaft still at around 767 m. The final planned depth of the ventilation shaft has, however, increased marginally to 733 m, from 716 m.

A 7,200 t/d shaft operation using long hole shrinkage (LHS) mining will provide an additional 13 years of mine life to the Karowe operation after a five-year construction period. The 767-m-deep production shaft will be equipped with two 21 t skips for production hoisting and a service cage for man and material movement through the mine. This shaft will also serve as the main fresh air intake to the mine.

The pre-sink construction contract and shaft sinking equipment procurement were awarded to UMS Botswana and UMS South Africa, respectively. METS International Ltd, a subsidiary of UMS, was awarded the shaft engineering contract.

The company explained: “Detailed design and engineering work on the production and ventilation shafts is now 90% complete, and has resulted in the following changes to the 2019 feasibility study: i) production shaft diameter has increased from 8 m to 8.5 m, ii) ventilation shaft permanent headframe, hoists and internal conveyances have been removed, iii) parallel pre-sinking of both shafts, iv) ventilation fans and coolers to be located on surface, v) in-shaft grouting of water strikes changed from grout curtain installation from surface, vi) planned development of an additional sublevel to assist in drilling of drawbells, and vii) removal of 670L de-watering galleries.”

Increased schedule time related to shaft sinking has been a result of the increased production shaft diameter, time allowances for in-shaft grouting during sinking operations planned at known water strike horizons, holing through all shaft stations between shafts and additional ground support for underground stations/level breakouts, the company said.

UMS is in the process of mobilising crews to Karowe to initiate pre-sink works. Pre-sinking of the two shafts will run in parallel and start with mobile cranes and then transition to Scott Derrick cranes with the final depth of pre-sink at around 40 m below surface.

With the exception of an additional sublevel (340L) to assist with drill and blast of drawbells, the design, layout and infrastructure of the underground mine all remain aligned with the 2019 feasibility study, the company noted.

Temporary power for shaft sinking is required until such time as the upgrade bulk power supply infrastructure is commissioned in the December quarter of 2022. A three-phased ramp up of the generator capacity is planned to support the increasing power requirements related to the shaft sinking activities.

A power supply and services contract for the temporary generators has been signed with Aggreko International Projects Ltd. Mobilisation has been initiated with the generator pad established. Commissioning of Phase 1 is scheduled during the September quarter to support the start of pre-sink activities.

The Karowe UGP is targeting the substantial resources remaining below the economic extents of the open pit in the South Lobe.

The LHS method is planned to systematically drill and blast the entire lobe on a vertical retreat basis. In LHS, a significant proportion of the blasted muck is left in the stope during blasting and stoping to stabilise the host rock with only the swell extracted during the drill and blast phase. Mucking will take place from draw points from the 310L extraction level. Once the column is fully blasted, the stope will be drawn empty by mucking the draw points.

The bottom-up approach of the LHS mining method takes advantage of the higher value EM/PK(S) kimberlite unit at depth in the South Lobe at Karowe, and balances high initial capital costs with low operating costs while de-risking the project with respect to the geotechnical and hydrogeological aspects of the host rocks, according to Lucara.

A revised project cost and schedule has been developed that captures the detailed engineering and design work through 2020 until May 2021, incorporating all changes, improvements, and COVID-19 related delays. Overall capital expenditures, including contingency, have increased marginally by some 4%, to $534 million, driven by the increase to the production shaft diameter and additional mine development.

The schedule to 75% of full production has increased by 1.3 years, driven mainly by COVID-19-related delays to commence the shaft pre-sinking and additional planned time for shaft station break-outs and ground support, Lucara added.

During 2020, Lucara negotiated and signed a self-build agreement with the Botswana Power Corp (BPC) for the construction of two substations and a 29-km-long 132 kV transmission line from BPC’s newly established Letlhakane substation to the Karowe mine. The planned route follows an existing regional 400 kV line and then runs parallel to the existing 11 kV transmission line currently supplying bulk power to the Karowe mine.

The new power infrastructure will provide the required power for the current open pit, processing plant and the underground mine expansion. Commissioning of and handover to BPC is scheduled for the December quarter of 2022. Construction of substations is scheduled to commence this quarter and power line construction in the March quarter of 2022, the company said.

JDS Energy & Mining Inc is the engineering procurement and construction manager for the execution of the Karowe UGP and is currently building up the on-site project team in conjunction with Lucara’s owners team and working in close cooperation with the Karowe Diamond Mine operations team.

Rhino raiseborer set for work in Botswana, South Africa

Having been introduced to the southern African market only a year ago, two Rhino 100 ‘plug-and-drill’ raiseborers from Sandvik Mining & Rock Solutions are already destined for local mining sites.

One unit will soon be at work in Botswana, while the second will be delivered to a large South Africa mine later this year, according to Saltiel Pule, Sandvik Mining & Rock Solutions’ Business Line Manager for Underground Drilling in southern Africa.

“This machine has raised considerable interest in our market, and we fully expect to see five units at work in our region by the end of 2022,” Pule says.

The primary application of the Rhino 100 is for drilling of production slots, but it also makes a valuable contribution in a range of other applications – from ventilation raises and escape routes to ore passes and connections between tunnels, the company said.

“Using conventional drill and blast methods, these vertical or inclined holes can take mines three to six months to complete,” Pule says. “With the Rhino 100, we are talking about durations of less than a week.”

Drilled as relief holes in sub-level open stoping, slot raises provide the necessary void space for blasting, allowing the expansion of blasted rock into the void to improve fragmentation.

Dean Zharare, Sales Engineer for Underground Drilling at Sandvik Mining & Rock Solutions, says the conventional blasting of slot raises often creates a bottleneck for mines.

“We have encountered situations where mine personnel have to return two or three times to a slot raise before it is ready, due to misfires, for instance,” Zharare said. “This creates a bottleneck in the mining process, reducing the monthly metres achieved.”

The mobility and drilling speed of the Rhino 100 can transform this scenario, he says, with an expectation that monthly metres drilled could improve by 65%. There is even the possibility that one of the units in South Africa will be operated remotely with the operator based on surface while it drills underground stopes.

Drilling holes of 750 mm in diameter, the Rhino 100 boasts penetration rates of about 2 m/h, more than double the rate of conventional methods, Sandvik claims. As important as the speed, Zharare says, is the reliability of the result.

“These larger holes make the blast much more reliable, avoiding any time consuming and dangerous redrilling in the event of a block ‘freezing’ after an unsuccessful blast,” he says.

Underpinning the machine’s mobility is its ability to carry its own components, including rods, cables, hydraulics and the raiseboring head. It is pulled by a specially adapted double-axle John Deere tractor. To optimise the set-up time – which can take as little as 10 minutes – it has outriggers for stability rather than needing a concrete pad to be poured. No roof bolting is required either, as an inclinometer gives the operator the necessary coordinates for a surveyor to confirm before drilling operations begin.

Since the Rhino 100 was launched 2017, it has achieved a strong global footprint, with over 20 units operating worldwide. Australia has seen particularly strong take-up, with one contractor already ordering four machines. Underground expansions at almost a dozen operations around southern Africa present exciting opportunities for the future of the Rhino 100 in this region, Zharare says.

The Rhino is manufactured by TRB-Raise Borers in Finland but is equipped with Sandvik tools and is distributed by Sandvik.

Perenti boosts Botswana portfolio with Sandfire Motheo copper project contract

Perenti Global Ltd says its surface mining business in Africa, African Mining Services (AMS), has been awarded the contract for open-pit mining services at Sandfire Resources’ Motheo copper project in Ghanzi, Botswana.

The contract, which is yet to be finalised, has an estimated value of $496 million over an initial seven-year-and-three-month term with a provision for a one-year extension.

Under the terms of the Mining Services Contract, AMS will identify a suitable local Botswana company or companies as a joint venture partner for the project and transition to the joint venture before the commencement of mining in early 2022.

Finalisation of the contract is contingent on the satisfaction of two primary conditions, namely Sandfire being granted a mining licence for the project; and finalising the terms of the Mining Services Contract.

Perenti Managing Director and Chief Executive Officer, Mark Norwell, said Motheo represented a game-changing growth opportunity for AMS and will substantially increase Perenti’s presence in Botswana.

“Growing our footprint in Botswana is aligned with our 2025 strategy, to further expand into stable mining jurisdictions and pursue quality projects. The benefit of adding Motheo to the Perenti project portfolio is the opportunity to leverage our existing in-region operational presence at Zone 5 (owned by Khoemacau Copper Mining) as well as partnering with Sandfire to develop Botswana’s next large-scale, highly productive, world-class copper mine.

“The Motheo project is another positive step in the ongoing transformation of our AMS business as we seek to create value and certainty for our client Sandfire and the Ghanzi community.”

Motheo is in the Kalahari Copper Belt, an emerging and relatively underexplored copper producing region. It is around 200 km to the southwest of the Khoemacau Zone 5 project, where Perenti, through its subsidiary Barminco, is currently engaged to undertake underground mine development works.

Motheo is held through Sandfire’s subsidiary, Tshukudu Metals, and was approved for development by Sandfire’s Board of Directors in December 2020 following completion of a definitive feasibility study (DFS) on a base case of a 3.2 Mt/y operation with expansion potential.

The DFS outlined an initial 12.5-year operation, underpinned by an updated ore reserve of 39.9 Mt at 0.9% Cu and 12.2 g/t Ag for 360,000 t of contained copper and 15.6 Moz of contained silver, producing on average circa-30,000 t/y of contained copper and 1.2 Moz/y of contained silver over the first 10 years of operations.

Perenti Mining Chief Executive Officer, Paul Muller, said: “Through this commitment and the establishment of a local joint venture partnership, we expect that more than 95% of the workforce will be citizens of Botswana. Furthermore, and leveraging our existing Maun based state-of-the-art mining training centre, our workforce will have access to the latest mining techniques and technology to enable the creation of a safe, highly skilled and productive workforce to support economic growth and diversification within Botswana.”

Muller said the company was also excited by the opportunity to deploy “future-focused mining technology initiatives” on the project that not only provide expected productivity and safety benefits to Sandfire but are also aligned with the two firms’ sustainability goals.

Perenti anticipates pre-production work to commence in late 2021 with mining to commence in early 2022.