Government awards mining license for the P10 billion Ghantsi copper mine

Ministry of Mineral Resources, Green Technology & Energy Security through Department of Mines has awarded mining licence to Tshukudu Metals, a subsidiary of Australian Sandfire Resources, The Wrap mining news unit-The Projects Magazine has been informed.

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According to information gathered by the niche Publication all is set for Ghantsi to have a copper mine next year, the region ‘s first ever. Based on a forecast copper price of US$3.16/lb (reflecting current long-term consensus pricing) the Base Case 3.2Mtpa, the Ghantsi copper project is forecast to generate US$664 million (over P7 billion ) in pre-tax free cash-flow and US$987 million (over P10 billion ) in EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation), at a forecast all-in sustaining cost of US$1.76/lb over its first 10 years of operationsIn December 2020, the Board of Sandfire Resources approved the commercial development of the Motheo Copper Mine located in the Kalahari Copper Belt in Botswana, marking a key step in its transformation into a global, diversified, and sustainable mining company.

Tshukudu Metals Botswana (Pty) Limited (Tshukudu) a 100% owned subsidiary will be the owner and operator of the Motheo Copper Mine which is scheduled to produce up to 30,000 tonnes per annum of copper in concentrate over a 12 year mine life.TMB is targeting development of its Motheo Copper Mine in 2021 and 2022, with its first production in 2023.

Last month Sandfire announced that it has awarded over P5 billion worth mining contract to African Mining Services, a subsidiary of Perenti, to deliver the open cast operation. Perenti is also parent company of Barminco, underground mining giant currently delivering services at Khoemacau Copper Mine.

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