‘Confidence in copper’ spurs $1.9-billion Botswana deal

Botswana

GABORONE, November 21, 2023 – MMG has agreed to purchase the Canadian owner of Botswana’s Khoemacau copper mine for USD 1.88 billion amid a wave of high demand for copper driven by the global energy transition.

MMG, majority held by state-owned China Minmetals, announced on Tuesday it had reached a share purchase agreement with Canada’s Cuprous Capital, which is majority held by funds managed by private equity firm Global Natural Resources Investments.

The Chinese player is pursuing acquisitions of minerals needed in clean energies, responding to a surge in demand from commodity traders. It cited “confidence in copper as a commodity with a strong forward demand” in seeking out the asset.

The 60,000-tonne-per-year Khoemacau copper mine is located in the northwest of Botswana in the Kalahari Copper Belt, which MMG chairman Jiqing Xu termed “one of the most prospective mining regions in Africa.” Construction on the mine was completed in June 2021.

Copper plays a key role in clean energy developments given its use in solar panels, wind turbines, energy storage systems and power cables.