Motheo Copper Mine confirms expansion potential
Sandfire Resources has confirmed the company’s potential to expand its Motheo Copper Mine from a 3.2 million tonnes per annum ( Mtpa) project to a 5.2 million tonnes per annum ( Mtpa).
The development comes after completion of a maiden ore reserve estimate for the satellite A4 deposit and pre- feasibility study for the expansion case. Sandfire’s Managing Director and Chief Executive Officer, Karl Simich said the maiden A4 ore reserve and positive expansion case PFS marked another pivotal milestone in the company’s plans to establish a major new long- term mining hub at Motheo.
“The completion of this maiden ore reserve at A4 provides the incremental increase in ore feed required to lift our planned production rate at Motheo to 5.2Mtpa, with the PFS showing that an expanded project will deliver a very positive uplift in the project’s overall economic credentials, including a 88 per cent increase in pre- tax net cashflow to US$ 1.24 billion. “Encouragingly, 85 percent of the current A4 Mineral Resource has been converted to ore reserves, a very pleasing result which bodes well for our ongoing exploration across the Kalahari Copper Belt,” said Simich. Sandifire says it has already identified several opportunities to enhance the economic outcomes of the PFS, particularly in the area of mine scheduling. “We are also continuing a major drilling campaign both in the near- mine area as well as across our extensive landholding in the Kalahari Copper Belt,” said Simich.
Meanwhile, Sandfire said work programs to support the 5.2Mtpa Motheo Expansion DFS are well underway, with significant work already progressed on areas such as environmental studies and approvals, metallurgical test- work, geotechnical drilling and analysis, groundwater drilling, mine scheduling and open pit optimisation.
In addition, total development capital has increased to US$ 366 million ($ 504 million), incorporating development costs for the A4 Open Pit and expansion of the processing plant, plus an updated cost forecast for the Motheo Processing Plant to account for increased steel costs and foreign exchange movements.
As development at Motheo unfold, government has a right to acquire up to a 15 percent fully contributing interest in the Motheo Copper Project, though it has not yet notified Sandfire of its intention regarding the acquisition of an ownership stake.