- Perenti Global's (PRN) African Mining Services (AMS) business wins a contract for Sandfire Resources' (SFR) Motheo Copper Project in Botswana
- The contract is for open-pit mining services and is yet to be finalised
- Pre-production work is expected to commence in late 2021 and mining in early 2022
- The contract is valued at US$496 million (around A$648 million)
- Perenti is in the grey and trading at 68 cents per share at 12:16 pm AEST
Perenti Global's (PRN) surface mining business, African Mining Services (AMS), has won a contract for open-pit mining services from Sandfire Resources' (SFR).
AMS will provide its services for the Motheo Copper Project, located in Ghanzi, Botswana.
The contract, yet to be finalised, has an estimated value of US$496 million (around A$648 million), over seven years.
For the deal to be completed, Sandfire will need to be granted a mining licence for the Motheo Project, and the parties will need to finalise the terms of the mining service contract.
Under the terms of the contract, AMS will find a suitable local Botswana company
or companies to form a joint venture (JV) for the project. This JV will need to be formed before the commencement of mining in early 2022.
"Partnering with Sandfire is a great opportunity and collectively we share a strong
commitment to the creation of shareholder value while demonstrating the highest standards of safety, responsibility and sustainability," Perenti CEO Mark Norwell said.
"We look forward to demonstrating our capabilities as we deliver on our
commitments at the Motheo Project."
The Motheo project is located in the Kalahari Copper Belt, an emerging and relatively underexplored copper producing region.
Motheo is held through Sandfire’s subsidiary, Tshukudu Metals, and was approved for development by the board in December 2020, following a definitive feasibility study.
Pre-production work is expected to commence in late 2021 and mining in early 2022.
On the market this morning, Perenti is in the grey and trading at 68 cents per share at 12:16 pm AEST.