Sandfire to spend P210m on exploration
Sandfire, the developers of Motheo Copper Mine has allocated $ 19 million, approximately P210.70 million, for exploration across the country’s Kalahari Copper Belt, pushing through into Namibia.
The development will be underpinned on the company’s strategic growth plan, being executed across its various projects and subsidiaries despite the present threat of COVID- 19 pandemic.
Apart from exploration, Sandfire has strongly reiterated intentions to continue to deliver key elements of its strategic growth plan. This includes construction of its new Motheo Copper Mine in Botswana and the wider exploration and development of its portfolio in the Doolgunna Region of WA, the Eastern states of Australia, the Kalahari Copper Belt, and the USA, said Sandfire’s Managing Director, Karl Simich. Simich said development of the new Motheo Copper Mine, where construction is rapidly ramping up, following the grant of the mining license in July, is a major focus for the company.
The company’s commitment to Motheo is also evident on its financial result for the financial year 2021, which indicates that Sandfire has made payments of $ 43.5 million, approximately P482.38 million, for Motheo capital expenditure, $ 79.8 million, approximately P884.92 million, for exploration and evaluation expenses, up from $ 65.1 million which is approximately P721.91 million, in financial year 2020. “Our strong cash position and debt- free balance sheet represents a fantastic springboard for Sandfire as we move ahead with the execution of our strategic plan, having significantly expanded the depth and capability of our organisation and senior leadership team during the year and embarked on the development of a major new copper mine at Motheo in Botswana,” said Simich. Motheo Mine is one of the mining projects expected to spur the country’s copper mining and industry experts have cited that the country’s copper will ramp up between 2022 and 2025. In July, Khoemacau Copper Mine, with capacity to produce 165, 000 tonnes of high- grade copper and silver concentrate a year, was commissioned. Over its 22 years lifespan, Khoemacau Copper Mine is expected to contribute approximately, P119 billion to the GDP, with an estimated average annual tax revenue of over P1 billion.