- P859 million committed for next quarter
- P4.2 billion total development capital
The Projects | Copper Mining
Sandfire Resources is progressing well with development of its Motheo Copper Project in Gantsi.
The Australian listed company has contracted African Mining Services (AMS) to develop Motheo Copper Project into world class open pit Copper Mine.
In its latest quarterly report Sandfire revealed that construction activities continued to ramp up at the Motheo Copper Mine with the 200-person construction camp operational, construction of the access road continuing and bulk earthworks underway.
Detailed process plant engineering design is now complete, initial borrow pit and temporary haul roads developed.
Construction of the access road is continuing and the bulk earthworks contractor for the processing plant has mobilised and commenced clearing vegetation from the plant site.
The detailed process plant engineering design, being undertaken by Lycopodium, was substantially completed in October 2021.
Design and procurement of the 132kV sub-station and powerline is well advanced and design of the 750-bed accommodation facility is complete, with mobilisation to site early in the December 2021 Quarter.
Key construction contracts that have been awarded since the end of the June 2021 Quarter include process plant bulk earthworks, process plant concrete works, international equipment transport and logistics, 11kV power distribution, construction camp catering and Medical & Emergency Management Services.
Total development capital for the Motheo Project has increased to US$366 million ( approximately P4.2 billion).
This incorporates development costs for the A4 Open Pit and expansion of the processing plant, plus an updated cost forecast for the Motheo Processing Plant to account for increased steel costs and foreign exchange movements.
As at 30 September 2021, US$46.3 million ( P541 million) of capital expenditure has been completed, with a further US$73.4 million ( P859 million) of expenditure. committed.
Sandfire intends to fund the development of the Motheo Copper Mine through a combination of cash and project debt.
Negotiations for debt financing of a minimum of US$160 million for the Base Case 3.2Mtpa development have been significantly advanced, with the Company’s shortlist of potential international lenders set to complete due diligence over the next month prior to credit committee approvals.
Sandfire has also commenced discussions with the same group of potential lenders to contribute a targeted 50% of the funding required for the additional A4 development.
