Australia-based mining company MMG has agreed to acquire Cuprous Capital, the parent company of the Khoemacau copper mine located in Botswana, at an enterprise value of $1.87bn.

Through the transaction, MMG expects to reinforce its strategy to develop a portfolio of high-quality mines supplying the minerals most required for a decarbonised world.

In June 2021, Khoemacau Copper Mining completed construction of its facility, achieving an annual production capacity of approximately 60,000 tons of copper and around 1.6 million ounces of silver metal in concentrate at full operational capacity. The full production ramp-up of ongoing operations was completed in Q4 2022.

MMG chairman Jiqing Xu said: “The acquisition of Khoemacau mine is an important step in achieving our vision of creating a leading international mining company for a low carbon future and will create meaningful long-term value for our shareholders.”

Located in the Kalahari Copper Belt, the Khoemacau copper mine has an annual copper equivalent production of 50,000 to 65,000 tonnes with a near term expansion to 135,000 to 155,000 tonnes.

The mine life of the Botswanan copper mine is over 20 years.

According to Khoemacau Copper Mining, its current shareholders have taken the Khoemacau project from the exploration and discovery stages to the development of a sustainable, long-life operation over the last 12 years.

The company has invested nearly $1bn for the development of the Khoemacau copper mine over the period.

Khoemacau Copper Mining CEO Johan Ferreira said: “We would like to thank the current owners, who as custodians of Khoemacau over many years, successfully transformed the company from a development idea to a fully-fledged operating copper mine.

“Having successfully completed the ramp up of the Zone 5/Boseto operations, the company will now be focused on the expansion study, which will seek to double production.”

Subject to certain preceding conditions and approvals, the transaction is anticipated to be completed in H1 2024.

Macquarie Capital and Citigroup served as joint financial advisors to MMG for the deal.