Chinese mining company MMG has signed an agreement to acquire Canadian Cuprous Capital, which owns the Khoemacau copper mine in Botswana. The deal is valued at $1.88 billion and is expected to close in the first half of 2024.
The mine is located in the Kalahari Copper Belt, which is considered one of the largest copper deposits in the world yet to come on stream. Its capacity is currently about 60,000 tons of copper and 2 million ounces of silver per year.
The Canadian company had earlier developed a project to expand capacity to 130,000 tons and 5 million ounces per year, respectively. MMG said it is ready to meet all of Cuprous Capital’s financing needs.
According to Reuters, the Chinese company has been looking for a suitable copper asset to acquire for more than a year. MMG expects copper demand to expand due to the global energy transition. China’s Minmetals Securities forecasts that consumption of the metal in alternative energy will increase from 2.6 million tons in 2022 to 7.7 million tons in 2030.