Perenti’s AMS wins $648m open pit mining contract


Perenti’s surface mining business in Africa, African Mining Services (‘AMS’), has been awarded a $648 million contract for open pit mining services at Sandfire Resources’ Motheo Copper Project in Ghanzi, Botswana.

The Motheo project is located in the emerging and relatively underexplored copper producing Kalahari Copper Belt, approximately 200kms to the south west of the Khoemacau Zone 5 project, where Perenti, through its subsidiary Barminco, is currently engaged to undertake underground mine development works.

Under the terms of the mining services contract, which is yet to be finalised, AMS will identify a suitable local Botswana company or companies as a Joint Venture partner for the project and transition to the joint venture before the commencement of mining in early 2022.

Perenti Managing Director and CEO Mark Norwell said the contract would substantially increase the company’s presence in one of the world’s most attractive mining jurisdictions, ranked the eleventh most attractive region for global mining investment.

“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,” Mr Norwell said.

“We look forward to demonstrating our capabilities as we deliver on our commitments at the Motheo Project.”

Sandfire’s Managing Director and CEO, Karl Simich, said the award of the open pit mining contract marked another key milestone towards the development of the Motheo Project, which is expected to generate approximately 1,000 jobs during the construction phase and 600 direct full-time jobs during operations.

“We are looking forward to working with the AMS team to deliver the Motheo operation,” Mr Simich said.

“As one of the largest contract mining companies in Africa, AMS has vast experience working across the African continent, and with a strong focus on safety and sustainability, they represent a perfect fit with our organisation.

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