Barminco to Exit Khoemacau Copper Mine as MMG Plans Major Expansion

Perenti Mining

Australian mining contractor Barminco will exit operations at the Khoemacau copper mine in Botswana on 30 June 2025. The withdrawal follows a strategic decision by parent company Perenti based on financial performance shortfalls. Despite playing a critical role since the mine’s 2019 startup, Barminco did not meet internal performance targets to justify its continued involvement in the project.

Barminco’s exit marks a turning point for the Khoemacau project, now fully controlled by Chinese mining company MMG, which acquired the asset in March 2024. Under the exit terms, Barminco will sell all of its mining equipment on site to MMG, signaling a full operational handover. This development aligns with MMG’s broader ambitions to scale copper production in Botswana, a region gaining importance for global copper supply diversification.

MMG Sets Aggressive Growth Targets for Copper Output

Khoemacau’s output reached 30,961 tonnes in 2024, contributing $34 million EBITDA to MMG during its first quarter of ownership. MMG now plans to raise output to 43,000–53,000 tonnes in 2025. More notably, the company has announced an expansion project scheduled for 2026, targeting an annual copper output of 130,000 tonnes by 2028.

This aggressive production roadmap underlines MMG’s strategy to secure long-term copper supply amid global energy transition demands. Botswana’s political stability and proximity to southern African transport routes offer favorable conditions for scaling copper exports. With Barminco's departure, MMG gains full operational control and flexibility to execute its long-term plans.

Strategic Implications for African Copper Projects

The Barminco Khoemacau copper mine exit reflects broader trends in mining services consolidation and risk-based contracting strategies. While Barminco exits due to profitability issues, MMG's rapid operational expansion underscores the increasing value of tier-two copper jurisdictions like Botswana. As copper remains central to renewable energy infrastructure, the industry's focus on Africa will likely intensify.

Other Chinese mining firms may follow MMG's lead in acquiring and scaling African copper assets, particularly as supply concerns grow across traditional producers. The Khoemacau expansion could also attract infrastructure investment and regional supply chain development.

The Metalnomist Commentary

Barminco’s exit signals a shift in risk appetite among mining contractors, while MMG’s expansion bets on rising long-term copper demand. As Botswana positions itself as a rising copper player, operational control and investment from majors like MMG will shape the region’s strategic metal output.