Sandfire Resources announces winner of $496 million Motheo contract
(Kitco News) - Sandfire Resources (ASX:SFR) announced Wednesday that Perenti Global's African Mining Services (AMS) has been awarded an estimated $496 million contract to help with Sandfire's Motheo Copper Project in Ghanzi, Botswana.
The Motheo project is located in the Kalahari Copper Belt. The project is located approximately 200kms to the south west 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 on a base case of a 3.2Mtpa operation with expansion potential. Motheo forms part of Sandfire's investment in a new, long-life copper production hub centred around the Motheo mine. The mine is underpinned by a robust resource that is expected to produce copper for over 12 years, with significant exploration upside and growth potential within Sandfire's 100%-owned licence holdings in the Kalahari Copper Belt, across both Botswana and Namibia," wrote Sandfire in a news release.
Perenti anticipates pre-production work to commence in late 2021, with mining to commence in early 2022.