Perenti finalises Motheo contract

Perenti finalises Motheo contract

Perenti Global Ltd has announced its surface mining business in Africa, African Mining Services (AMS), has finalised the contract for the provision of opencast mining services with Tshukudu Metals Botswana (Pty) Ltd at the Sandfire Resources Motheo Copper Project in Ghanzi, Botswana. The finalised contract is valued at US$493 million (100% basis) over an initial term of seven years and three months, with a provision for a one-year extension.

As noted in the release dated 9 June 2021, the finalisation of the contract was contingent on the satisfaction of two primary conditions, both of which are now satisfied.

AMS continues to progress the identification of a suitable joint venture partner from within the Botswana business community to support the project. AMS expects to have the joint venture established before the commencement of mining works in early 2022.

Mark Norwell, Managing Director and CEO of Perenti, said: “The finalisation of the Motheo contract with Sandfire is an important milestone that will support our engagement with potential Botswanabased joint venture partners, who we will work with ahead of the start-up of mining activities in early 2022. We have commenced mobilising heavy equipment to site and our team are looking forward to working with Sandfire on what will be a significant project in a very prospective and emerging copper mining province.”

Business International News