- Mine to pay P3.3bn in royalties and taxes when fully operational
- 650 full-time jobs to be created and filled at full operation
- Mine to trigger public and private sector investments
Motheo Copper Mine is expected to have positive spinoffs in direct and indirect employment, local procurement of goods and services, engagement of local contractors, and an ever-expanding community relations programme built around improving the lives of the local people, President Mokgweetsi Masisi said at the official opening of the mine recently.
The President added that the construction and commissioning of the mine, which is located 70km northeast of Gantsi, has already had a positive impact on the local communities of Gantsi, Kuke, DโKar, and their surroundings.
โI am informed that during the development and construction phase of Motheo Copper Mine, which commenced less than three years ago, at an estimated cost of P4.9 billion, significant downstream investment flowed to benefit local companies and our people,โ he said.
Ancillary benefits
โMore than 1,900 jobs were created throughout the construction phase of the mine, and it is expected that at full operation, there will be 650 full-time jobs. โOf these jobs, 97 percent will be filled by employees who will be locally recruited and only about 3 percent sourced internationally.โ In addition to job creation opportunities, the mine โ which is owned by Sandfire Resources – ancillary benefits in infrastructure development are expected to emerge as an evolution of an ecosystem of public and private sector investments.
President Masisi said these will include improved road networks, electricity supply, telecommunication facilities, fibre optic networks, security services, health facilities, water reticulation, and an expanded market for goods and services.
Food security
โThis project will also have a positive impact on rural development and food security as it is expected to harmoniously co-exist with large-scale agricultural projects already underway in the greater Gantsi region,โ he added.
Over and above that, Motheo Copper Mine is expected to make a significant financial contribution to Botswana in the years ahead. This will be in the form of a minimum of P3.3 billion in earnings through payment of royalties, company tax, and withholding taxes to the Botswana Government once it is fully operational.
It is also estimated that the government will receive a further P385 million in employee payroll taxes. Further, Sandfire will contribute P1.7 billion in electricity payments to Botswana Power Corporation during the estimated life of the mine, which is 12 years and-a-half, providing the government with the opportunity to advance important policy priorities, including those in the minerals and energy sectors.
Socio-economic rewards
President Masisi urged the private sector to play a significant role in Botswanaโs development trajectory alongside the governmentโs primary role of creating an enabling environment for other players, among them the business community and civil society to maximise their impact.
โIn this regard, Motheo Copper Mine is a glowing example of the role of the private sector whose benefits include socio-economic rewards not only for the country but also for the employees, contractors, service providers, and local communities,โ said the President.
Pointing out the critical role played by the mining sector in Botswana, President Masisi emphasised that a robust mining industry based on a sound system of law, good governance, and prudent fiscal policies creates an environment that allows companies like Sandfire to confidently invest in the future of Botswana.
Minerals legislation
โAs a way of modernising our minerals legislation in alignment with our policy aspirations,โ he noted, โthe Diamond Cutting Amendment Act and the Precious and Semi-Precious Stones (Protection) Amendment Act were passed by Parliament on 16 August 2021. โFurthermore, the Amendment of the Mines and Minerals Act is also ongoing as government continues to create an environment conducive for mining in order to make Botswana a global mining hub and the mining destination of choice.โ
Said the Managing Director and CEO of Sandfire Resources, Brendan Harris, also speaking at the official opening of the mine: โThe official opening ceremony marks an important milestone for Sandfire and provides an opportunity to acknowledge the community, our people, and the many contractors who have contributed to the timely and safe development of our newest operation.โ Motheo Copper Mine is located on the Kalahari Copper Belt in Botswana and is operated by Sandfire Resources, an international and diversified sustainable mining company listed on the Australian Securities Exchange (ASX).
