GNRI considering other options for its Khoemacau Copper Mine in Botswana

It is reported that Global Natural Resource Investments (GNRI) is considering selling its Khoemacau copper mine in Botswana, according to sources familiar with the situation.

The private equity firm is working with an undisclosed adviser to find potential buyers for the mine, and it is also considering other options for the asset.

The mine could be worth nearly $1.5 billion in a transaction, though the company has not made a final decision on the matter and the likelihood of a deal happening is still uncertain.

Larger mining firms looking to expand their copper portfolio could potentially bid for the Khoemacau mine, according to sources familiar with the situation.

Located in the Kalahari copper belt that stretches from northeast Botswana to western Namibia, the Khoemacau mine commenced production in June 2021.

It has been enhancing operations to a planned annual production level of 60,000 metric tonnes of copper and two million ounces (Moz) of silver, according to its website.

The mine is being developed by Khoemacau Copper Mining, which is wholly owned by Cuprous Capital, a private company owned by management and funds advised by GNRI.

Cupric Canyon Capital owns an 88.1% stake in Khoemacau while Resource Capital Fund VII and associates hold an 11.9% stake.

The Khoemacau copper-silver mine involves the underground mining of sulphide ores at the Zone 5 Mine.

According to estimates, the mine’s current operations produce a copper-silver concentrate with an average grade of approximately 40% copper, together with high-grade silver.

Khoemacau Copper Mining said that the mine is expected to produce 60,000t to 65,000t of copper and 1.8Moz to 2Moz of silver per annum, over its operational life of more than 20 years.