Global miner, BHP has signed a joint agreement with an ASX-listed copper junior, Cobre Limited to explore copper-silver-rich deposits in the Kalahari Copper Belt (KCB) near Makgadikgadi region in central Botswana.
The strategic collaboration aims to unlock the potential of Cobre’s Kitlanya West and East copper projects, which are situated along the northern and southern margins of the KCB. The two companies plan to form a joint venture focused on these projects.
Cobre, an Australian Securities Exchange-listed company, specialises in copper and base metals exploration in Botswana. With an extensive landholding of 5,348 km², the company offers significant opportunities for new copper discoveries. Major players like Sandfire Resources and MMG are already operating in the KCB, and Cobre’s projects could further bolster the region’s development in the global race to secure copper, one of the most critical metals of the 21st century.
Through the proposed joint venture, BHP is expected to leverage its exploration expertise to maximise Cobre’s chances of making significant discoveries in the basin margin. “The transaction with BHP will allow us to fully fund our exploration programs and focus on discovering the Tier 1 deposits we believe are present in our Kitlanya West and East projects,” said Adam Wooldridge, Cobre’s CEO.
BHP’s interest in Botswana is part of a broader strategy to secure access to copper, a critical mineral in the global transition to renewable energy. As the world shifts toward a lower-carbon future, copper is becoming increasingly essential for building infrastructure for clean energy sources such as wind and solar power. BHP has indicated that copper demand will continue to grow due to declining ore grades at existing mines, urbanisation in China and India, and the ongoing electrification of energy and transportation.
In May, BHP’s growing focus on copper was highlighted by its $39 billion bid for rival Anglo-American, driven by its interest in Anglo’s copper assets. Although the bid failed, it underscored BHP’s strategic emphasis on copper, a metal expected to see its demand double in the next two years as the world becomes more electrified.
Currently, copper accounts for about 30 percent of BHP’s profits, a figure expected to rise as the company grows its copper business through new and existing projects. BHP owns some of the world’s largest copper deposits, including Escondida, Spence, and Cerro Colorado in Chile, and copper mines in South Australia.
The Kalahari Copper Belt is already home to two major copper projects: Khoemacau Copper Mine and Sandfire Resources’ Motheo Copper Mine. These operations are part of a broader resurgence in Botswana’s copper industry, spurred by rising global demand and soaring copper prices.
Economists have noted that this resurgence comes at a pivotal time, as copper plays an increasingly important role in global supply chains. High copper prices have improved the performance of local mining operations, while the global push for net-zero emissions has created new opportunities for countries with significant copper reserves. Prices are predicted to remain above historical levels.
“The outlook for copper remains positive, as shown by the rising interest in mergers and acquisitions in the sector. This surge in interest reflects the future growth potential of copper-related activities,” remarked one economist.
Another economist emphasised copper’s importance across various industries: “The global shift toward green energy and the auto industry is driving high demand for copper. Additionally, growth in the global construction industry will further increase demand, independent of the green energy transition. This rising demand will likely push prices higher as markets remain in a deficit.”
Botswana is expected to benefit significantly from the copper boom, with economists predicting the country will continue attracting foreign investors eager to capitalise on its rich copper reserves. As copper prices stay elevated, idle mines may reopen, and new projects could emerge.
“Botswana can draw key lessons from its extensive experience in diamond mining to drive copper beneficiation and create much-needed jobs,” one economist added.
Botswana has become a top mining destination, recently ranked 15th out of 86 jurisdictions in the 2024 Fraser Institute Annual Survey of Mining Companies, making it the highest-ranked country in Africa. The Minister of Minerals and Energy, Lefoko Moagi, pointed out that both the global and local copper industries are booming. While some mines, like the government-owned BCL mine in Selebi-Phikwe, were forced to close due to low copper prices in the past, the industry is now experiencing a resurgence driven by the global transition to renewable energy.
Speaking at the inaugural Future of Mining Summit in 2024, Moagi noted a significant rise in investments in Botswana’s copper mining sector since 2023. Among these is the MMG Group’s acquisition of Khoemacau Copper Mining from Cuprous Capital, which produces approximately 60,000 tons of copper and 2 million ounces of silver annually. MMG, a mid-tier global resources company, mines and develops base metals globally, with China Minmetals, a state-owned enterprise, holding a 68 percent stake.
As China—the world’s largest copper consumer—relies heavily on imported copper for its vast transport, construction, and manufacturing sectors, it has also launched a strategic initiative to invest in copper mines worldwide.
