Business

Gov't kickstarts copper refinery study at Khoemacau

Khoemacau mine
 
Khoemacau mine

The proposed study will be conducted by MMG Khoemacau in partnership with government and other stakeholders as Botswana seeks to move further along the mineral value chain and reduce reliance on the export of raw mineral concentrates.

Addressing Parliament recently, Minister of Minerals and Energy Bogolo Kenewendo revealed that discussions were underway to examine the technical and commercial feasibility of establishing a copper refining facility in the country.

“Khoemacau, in partnership with stakeholders and in line with government policy, will undertake a feasibility study for the establishment of a copper refinery in Botswana,” she said.

The move signals government’s growing interest in expanding mineral beneficiation within the country’s mining sector, particularly as copper production in Botswana gathers pace following new investments in the Kalahari Copper Belt.

Since commencing operations, Khoemacau has exported approximately 587,000 tonnes of copper concentrate containing an estimated 177,000 tonnes of copper. Annual exports have averaged around 40,000 tonnes of copper, reflecting the mine’s steady production ramp-up.

Kenewendo added that the next logical step in the project’s evolution would be the establishment of downstream processing capacity.

“The next stage for Khoemacau would be smelting or refining which would further position Botswana as a value-added producer by enabling the production of refined copper rather than concentrate,” she said.

However, she cautioned that copper refining projects require significantly larger capital investments and specialised technical capacity compared to mining and concentration operations.

“Refining and smelting require substantially different technical capabilities and are significantly more capital-intensive than concentration. Such projects can only proceed with a clear and bankable business case,” Kenewendo said.

Copper concentrate currently produced at Khoemacau is exported for processing abroad, meaning a significant portion of the potential value associated with refining remains outside the country.

Government has increasingly emphasised the need for beneficiation in the mining sector as part of a broader strategy to maximise economic returns from mineral resources through job creation, industrial development and technology transfer.

Industry benchmarks suggest that the viability of a copper refinery typically depends on sufficient volumes of concentrate to sustain continuous operations. According to Kenewendo, a national production level of between 300,000 and 500,000 tonnes of copper concentrate annually is generally required to support a refinery economically.

“Production scale will be a critical determinant of viability,” she told Parliament.

Encouragingly, Botswana’s copper sector is moving closer to these thresholds as expansion plans gather pace across the Kalahari Copper Belt.

At full expansion, Khoemacau alone is expected to produce approximately 146,000 tonnes of copper concentrate annually. Exploration results in the region also indicate the potential for extended mine life, with some projections suggesting operations could continue beyond 2050.

Beyond mineral beneficiation, the development of a refinery could have broader economic implications through the creation of secondary industries linked to engineering services, logistics and energy supply.