Sandfire has announced intentions to fund the development of the 5.2 Mtpa expansion from 3.2 Mtpa development at Motheo Copper Mine through a combination of cash and project debt. “The company has obtained credit approval for a US$140.0 million (approximately P1, 8 billion) project debt facility from a syndicate of banks,” Sandfire’s Managing Director and Chief Executive Officer, Karl Simich, explains.
According to Sandifire, the total development capital is estimated at US$397.4 million (approximately P5.1 billion) incorporates future development costs for the A4 Open Pit and 5.2 Mtpa plant expansion of US$47.9 million (approximately P612 million) and the US$29.5 million ( approximately P377 million) increase in capital cost forecast for the 3.2Mtpa project.
“In parallel with this development, we are also continuing a major exploration campaign both in the near-mine area as well as across our extensive landholding in the Kalahari Copper Belt aimed at defining additional ore sources that can feed into our expanded processing hub at Motheo or support the development of new production centres across the region,” said Simich.
Currently, developments at Motheo Copper Mine include surface mining operations at the A4 Deposit, expansion of the processing plant and supporting infrastructure. The recently completed Motheo mining accommodation facility at 752 rooms requires no expansion to accommodate additional manning numbers associated with mining at A4.
In addition, new infrastructure for A4 includes a light vehicle access road from the already constructed access road, a dual lane HV haul road to be constructed from A4 to the Motheo Processing Plant, workshops, fuel, crib and office facilities, electrical and water supplies. And planning is well advanced for a 22MW Photo Voltaic (PV) and Battery Energy Storage System (BESS). “The PV plant would be located next to the process plant, with the potential to supply up to 34% of the project’s future energy needs and will reduce its CO2 emissions.”