Sandfire Resources (ASX:SFR) has received approval from the Botswana Department of Mines for an extension to its Motheo Copper Mine mining licence in Africa.
The company, which has a market capitalisation of $2.75 billion, says this approval represents the final ‘major’ permitting milestone for the 5.2-million-tonne-per-annum (Mtpa) Motheo Exploration Project.
Shares in Sandire Resources were up 6.61% to $6.45 at 1:30 pm AEST on Tuesday 22 August.
Sandfire says the development and mining of the A4 deposit is expected to start during the September quarter of FY24, which will expand the company’s footprint that comprises the T3 Open Pit.
The expansion project will see processing capacity increase from the initial rate of 3.2Mtpa to 5.2Mtpa by the end of December FY24 as the project’s design and procurement activities are ‘significantly’ advanced.
Commenting on the extension approval, Sandfire Resources Chief Executive Officer (CEO) and Managing Director Brendan Harris says: “Approval of the extended mining licence is a critical step for our newest mine, and we look forward to seeing the higher grade A4 pit contribute to the expanded Motheo mining complex, which is expected to produce more than 50,000 tonnes of contained copper in the 2025 financial year.
“Approval of the extended mining licence is a critical step for our newest mine“
The robust approvals process for this project was a significant undertaking, and I would like to congratulate our team for achieving this important milestone and thank the Government of Botswana and our host communities for their continuing support.”
The company says this approval follows the Botswana Government’s approval of the environmental and social impact assessment (ESIA) in May 2023.
Sandfire Resources is an ASX-listed international mining company. As of 30 June 2023, the company had US$142 million cash at hand and net debt of US$430 million, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Sandfire Resources
