South African firms eyeing Botswana copper mine takeover

Several South African mining companies, including Impala Platinum, Exxaro Resources, and Sibanye Stillwater, are considering bids to acquire Botswana’s Khoemacau copper mine, which hosts one of Africa’s largest copper deposits. Additionally, several Chinese investors have expressed interest in the mining operations. Copper demand is expected to rise significantly in the coming years due to its use in applications such as solar panels and electric vehicles, driving increased competition among miners for copper assets.

While copper prices have experienced some recent declines due to concerns about a global economic slowdown, the long-term prospects for the metal and strong competition for the asset are likely to make it challenging for bidders to secure a bargain.

Khoemacau is owned by Cupric Canyon LP, a US private equity firm with funds managed by Global Natural Resources Investments (GNRI) and Resource Capital Fund VII LP. The sale process is expected to take several months and conclude near the end of 2023. South32 and Sandfire Resources previously dropped out of the bidding process due to the mine’s high valuation.

Khoemacau is situated in the Kalahari Copper Belt, producing approximately 60,000 tons of copper and about 2 million ounces of silver per year. Potential future investments could increase production to around 130,000 tons of copper and 5 million ounces of silver per year. The owners of Khoemacau are open to either a partnership or an outright sale of the asset. The mine is valued at an estimated $1.5 billion to $2 billion.

Elevate your business with QU4TRO PRO!

Gain access to comprehensive analysis, in-depth reports and market trends.

Interested in learning more?

Sign up for Top Insights Today

Top Insights Today delivers the latest insights straight to your inbox.

You will get daily industry insights on

Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Japan’s stance on Middle East directly linked to its energy security concerns

Japan’s reaction to the recent Hamas-Israel conflict has been influenced by its persistent apprehension regarding potential ramifications for its crucial oil supply from the Middle East, given the nation’s energy insecurity and multifaceted diplomatic interests in the region. Initially…

Rising interest rates prompt short sales of oil despite conflict in the Middle East

Portfolio investors have resumed selling petroleum as concerns about rising interest rates and their impact on the global economy have taken precedence over earlier fears of conflict in the Middle East disrupting oil production. Hedge funds and other money managers…

Volkswagen announces $1.8 billion investment plan for electrification in Brazil

Volkswagen AG has announced plans to invest 9 billion reais ($1.8 billion) in Brazil between 2026 and 2028 to electrify its cars in the country. The investment will focus on a new hybrid platform and the introduction of fresh models. Volkswagen do Brasil CEO Ciro Possobom highlighted that the new…

Stay informed

error: Content is protected !!