Sandfire Deepens Investment in Botswana’s Motheo Mine Amid Production Shifts

Sandfire Deepens Investment in Botswana’s Motheo Mine Amid Production Shifts. Sandfire Resources has committed more than P890 million in capital expenditure to its Motheo operation in Botswana, reinforcing its long-term focus on the asset while navigating recent production challenges.

The investment, equivalent to $66 million for the 2026 financial year, is aimed at supporting operational progress and future output growth at the copper project. During the third quarter, Motheo produced 12.8 kilotonnes of copper equivalent, with performance affected by delays in accessing higher-grade ore.

Despite this, the operation recorded increased capacity, achieving annualised mining and processing rates of 6.5 million tonnes and 6.1 million tonnes respectively. A key development during the period was the introduction of ore from the A4 deposit into the processing system. However, partially oxidised material temporarily impacted recovery rates.

Operational momentum has shown signs of improvement, with performance gains extending into March and early April. Full-year production is currently expected to fall within the lower end of the company’s guidance range of 58 to 64 kilotonnes.

The outlook is supported by continued access to higher-grade zones within the T3 and A4 ore bodies, which are expected to improve feed grades and recovery efficiency over time. At the same time, Sandfire reported stable operating costs, with unit costs holding at $44 per tonne of ore processed during the quarter.

The company noted that logistics routes through Namibia and South Africa remain a factor in cost sensitivity, particularly as diesel and freight contribute a notable share of operating expenses.

A portion of the capital investment has been allocated to waste stripping activities to unlock further access to the A4 ore body. Exploration drilling and ongoing development studies, including a pre-feasibility study at the A1 deposit, continue to shape the project’s long-term trajectory.