MMG, a leading international mining company headquartered in Australia, has formed a share purchase agreement to acquire the Khoemacau Copper Mine
The asset will be acquired from its parent company at an effective enterprise value of US$1.875bn and, will reportedly align with MMG’s strategy of establishing a portfolio of mines delivering minerals that are essential for a decarbonised world.
According to MMG, Khoemacau is one of the highest quality new copper mines established globally and has an annual copper equivalent production of 50,000-65,000 tonnes and a potential near-term expansion to 135,000-155,000 tonnes across a mine life in excess of 20 years.
“The acquisition of Khoemacau mine is an important step in achieving our vision of creating a leading international mining company for a low carbon future and will create meaningful long-term value for our shareholders,” remarked MMG Chairman Jiqing Xu. “Khoemacau is a high-quality operating mine with a strong expansion case, located in one of the most prospective mining regions in Africa, the Kalahari Copper Belt, in Botswana, and capable of supporting global supply chains. This transaction aligns with our strategy to pursue value-accretive external opportunities, while continuing to drive significant organic growth opportunities across existing operations.”
MMG Interim CEO, Liangang Li, continued, “We are excited to expand our interests in copper as we see attractive growth opportunity in this sector. We look forward to working with the talented Khoemacau team, which has done an exceptional job of building this asset from exploration to production, establishing a high-quality operation with a highly motivated and largely Batswana workforce, as well as a strong safety performance and good stakeholder relationships.
“Together with the next stage of development at Las Bambas and the completion of the Kinsevere Expansion Project, the acquisition of Khoemacau will significantly increase our copper production and build opportunities for our people, host communities and shareholders.”
The transaction, which has Macquarie Capital and Citigroup acting as joint financial advisers, is expected to be completed in the first half of 2024.
