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- The Chinese mining company set to buy the Khoemacau for nearly $1.88 billion
- Commits to share its success with communities in their operating jurisdiction
- This include local employment opportunities, valuable transferable skills
- Aims to take the mine’s production to another level
- Khoemacau CEO says the acquisition will benefit Botswana in terms of jobs and community development
MMG, a Chinese mining company which has announced its intention to buy the Khoemacau Copper Mining for nearly $1.88 billion has committed to share its success with the communities surrounding the mine and create opportunities for them.
KCM on Monday announced that the shareholders of the parent company have agreed to share 100% of their interest to MMG Limited.
MMG is a global resources company that mines explores and develops copper and other base metals projects on four continents and its headquartered are in Australia. The company currently operates Dugald river zinc mine and the Rosebery polymetallic mine in Australia, the Kinsevere copper mine in the DRC, the Las Bambass mine in southern Peru, in addition to their Izokcorridor development project in northern Canada.
MMG is listed on the Hong Kong Stock Exchange and has an enterprise value of approximately US$10 billion.
Speaking at a joint press briefing in Gaborone this week, MMG’s Executive General Manager Australia and Africa, Nan Wang said they are committed to continue sharing their success with communities in their operating jurisdiction. This he said is through providing local employment opportunities, investing in training and education for future generations as well as helping people to gain valuable and transferal skills.
He revealed that the company employs over 45000 people globally of which over 90% are nationals within each of their operating jurisdiction. This he said includes some contractors with more than 10000 people within their business.
“In Peru we have 98 percent local employment, DRC we have 94 percent and Australia 93 percent with the overall percentage of employment of our local workforce being 90 percent which is consistent with the Khoemacau percentage,” he shared.
Wang said they are excited to work with the current Khoemacau management team and the side work force to build opportunities for the future generations, communities and shareholders. “It’s a new jurisdiction for MMG we looking forward to embrace all the wonderful things in this country, share our vision and commitment with the people, work together with all stakeholders and continue the success in the next decade and take the production to the next level,” he said
Wang said the strategic acquisition of Khoemacau is transformational for MMG noting that the mine will bring substantial copper resources to their current portfolio as well as the experienced management team and the workforce to the MMG family.
He congratulated the Khoemacau team for the success over the last 12 years noting that as MMG they are happy and proud to be part of this remarkable journey.
For his part, Khoemacau CEO Yohan Ferreira said they are excited about the acquisition because MMG has got the same value and principles as that of Khoemacau. The acquisition he said is a great benefit to Botswana in terms of employment and community development.
“MMG brings in significant operating development and finance which together with the Khoemacau team will be positioned to unlock the future opportunities of the mine thereby increasing the scale of operations and enhanced employment, economic activities,”
He said the sale of the company is the natural promising point for its ultimate ownership noting that from here there are still significant opportunities for the mine which MMG can exploit. Ferreira expressed confident that the company also have the passion to make it a reality to grow the business.
“MMG see a significant upside in terms of growth in Khoemacau and we are also operating in Botswana a world glass jurisdiction which is politically stable. We are now a save and a sustainable mining business and we are the most significant copper mine in Botswana with significant development opportunities.”
Meanwhile Ferreira has indicated there are still conditions that need to be met before change of ownership is finalised including clearance from the Botswana Competition Authority as well as consents from Botswana’s minister of minerals and energy for the change of control of license. He added that there are many other similar approvals that needs to be obtained in other jurisdiction.