Perenti Global (ASX:PRN) secures $648m copper project

Company News

by Michael Luu

Diversified mining company Perenti Global (ASX:PRN) has secured a deal to operate and develop a copper project on a site owned by Sandfire Resources (ASX:SFR) in Botswana.

Perenti’s representative on the continent, African Mining Services (AMS) will oversee the execution of the contract worth an estimated $648 million.

The deal has a duration of seven years with an option to extend for a further year. The development project is scheduled for commencement in 2022.

The Motheo project is a copper-silver mine located in the Southern African nation of Botswana. The country is rated the most politically stable and secure economy in Africa, according to the Fraser Institute Annual Survey of Mining Companies.

Perenti considers the agreement to be a “game-changing growth opportunity”, as the ASX-listed miner is gearing towards more hospitable and mining-friendly environments. The $479 million company regards Botswana as a suitable destination for this vision, in the wake of the 2019 terror attack resulting in many employee fatalities in Burkina Faso.

Perenti’s African subsidiary is now in search of a local mining specialist in Botswana to form a development and operation partnership for the mine.

The Motheo project is expected to provide employment opportunities for the local community, as Perenti intends to source 95 per cent of personnel from the local work force. 

Shares in Perenti Global (ASX:PRN) are trading 4.41 per cent higher at $0.71

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