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Highlights
- Operations at Khoemacau copper mine to end by June 2025
- Six-year engagement in Botswana concludes amid underperformance
- Strategic exit aligns with Perenti’s focus on disciplined capital deployment
Perenti (ASX:PRN) has announced that its underground mining services subsidiary, Barminco, will cease operations at the Khoemacau copper mine in Botswana, officially wrapping up a six-year partnership by June 2025.
Barminco has been active at the Khoemacau site since 2019, delivering underground mining services for the copper mine located in the Kalahari Copper Belt—one of Africa’s emerging copper-producing regions. The cessation of the contract comes as part of Perenti’s broader review of asset and contract performance within its portfolio.
According to the company, Barminco will remain on site to facilitate a smooth and orderly handover of operations. This transitional support is expected to continue until the formal contract closure in mid-2025.
Commenting on the strategic decision, Perenti’s Chief Executive Officer, Mark Norwell, noted that despite efforts to optimise the project’s returns, the financial metrics at Khoemacau consistently fell short of the group’s internal performance benchmarks. “We must maintain our commercial discipline to enable consistent returns through our economic cycles,” Norwell said, underlining the company’s focus on capital efficiency and long-term value creation.
The conclusion of this contract reflects Perenti’s proactive approach in adapting to operational realities while ensuring alignment with shareholder interests. Over the past year, the company has undertaken several initiatives to streamline its operations and reallocate resources towards projects that offer scalable and sustainable returns.
While the Khoemacau copper mine project was initially viewed as a strong foothold in southern Africa's copper-rich region, challenges related to project economics and logistical execution have influenced this outcome. The move also highlights the dynamic nature of the global resources sector, where ongoing assessment of project viability remains critical for companies operating in cyclical commodity markets.
As global demand for copper remains robust—driven by the electrification trend and infrastructure development—the decision to exit a single operation does not reflect negatively on the overall outlook for copper. Instead, it demonstrates Perenti’s commitment to focusing on high-performing assets and contracts that meet rigorous investment standards.
This development may prompt attention from industry watchers monitoring strategic pivots by major mining services firms, particularly in regions like Africa where infrastructure and project delivery conditions can vary significantly.
