Three Chinese Groups Vying to Acquire $2 Billion Botswana Copper Mine

In a race to acquire a lucrative Botswana copper mine, three prominent Chinese groups have emerged as leading contenders, with the potential transaction estimated to be worth around $2 billion, according to sources with knowledge of the matter.

Zijin Mining Group Co., MMG Ltd., and Aluminium Corp. of China, known as Chinalco, have all advanced to the second round of bidding for the prestigious Khoemacau project, the sources revealed.

Also, it has been reported that MMG is engaged in discussions to collaborate with Citic Metal Co., an entity within the Chinese state-owned conglomerate Citic Group. However, these talks remain private, and the sources requested anonymity in light of the confidential nature of the matter.

Implala Platinum Holdings Ltd., recognized as Implats, and fellow South African mining company Exxaro Resources Ltd. have also been shortlisted as potential suitors, the sources added.

Khoemacau’s primary shareholder, London-based private equity firm GNRI, is anticipated to select a winning bidder in the coming weeks, although discussions are ongoing, and there is no certainty that they will result in a final transaction.

This competitive pursuit of the Botswana copper mine reflects the global mining industry’s growing interest in expanding its copper holdings, given the anticipated surge in copper consumption driven by the demand for electric vehicles and renewable energy sources.

Khoemacau, which commenced operations in mid-2021 and has been steadily increasing its annual production to reach 60,000 tons, would further bolster the substantial copper portfolios already held by Zijin and MMG.

The mine, situated in the Kalahari copper belt spanning from northwest Botswana to western Namibia, has the potential for expansion to approximately 130,000 tons annually, as per information available on the company’s website.

When contacted for comments, representatives for Citic Metal, Implats, and Khoemacau declined to provide statements. Spokespeople for Chinalco, Exxaro, GNRI, and MMG did not immediately respond to requests for comment, while a representative for Zijin stated that they were not aware of the matter.

GNRI, formed as a result of a management buyout of Barclays Plc’s natural resources private equity business in 2015, retains its position as a key player in this high-stakes bidding process.