Financial Struggles Force Perenti to Withdraw from Khoemacau Copper Mine

Contract Conclusion Signals Strategic Shift

Perenti Limited, a major player in mining services listed on the ASX, has announced that its underground mining subsidiary, Barminco, will conclude its operations at the Khoemacau Copper Mine in Botswana by the end of June 2025. This decision closes a chapter that began with the mine’s commissioning in 2019, marking six years of continuous underground mining activity under Barminco’s management.

The Khoemacau Copper Mine, operated by Khoemacau Copper Mining Proprietary Limited; a subsidiary of global miner MMG Limited; has been a significant contract for Perenti. However, the company cited financial performance that did not meet its internal benchmarks as a key reason for the contract’s conclusion. This move reflects Perenti’s commitment to maintaining commercial discipline and ensuring consistent returns across economic cycles.

Operational Excellence Amid Financial Challenges

Despite the financial hurdles, Perenti’s leadership praised the operational team’s dedication and resilience. Managing Director and CEO Mark Norwell acknowledged the team’s outstanding efforts and expressed goodwill towards MMG’s future expansion plans at Khoemacau. The company also highlighted the importance of a smooth handover process, with Barminco set to assist MMG through the transition period until the contract’s official end date.

As stipulated in the contract, all mining equipment currently deployed at Khoemacau will be sold to MMG. The valuation of this equipment will follow a pre-agreed formula, though specific financial details remain undisclosed. This arrangement ensures continuity for MMG while allowing Perenti to recoup value from its assets.

Legacy of Workforce Development in Botswana

Beyond operational and financial considerations, Perenti emphasized the social impact of its tenure at Khoemacau. Gabrielle Iwanow, President of Contract Mining at Perenti, underscored the company’s commitment to workforce development, noting the training of some of Botswana’s first underground mine operators. This investment in local skills is positioned as a lasting legacy, benefiting hundreds of Batswana citizens who worked alongside Barminco over the past six years.

Looking ahead, Perenti’s focus will likely turn to securing new contracts that align with its financial and operational standards, while continuing to support clients and communities in its existing portfolio. The Khoemacau exit marks a strategic recalibration as the company navigates the evolving mining services landscape.