Minmetals Resources officially announced a heavy layout in the Hong Kong Stock Exchange. The Board of Directors officially approved the expansion project of Botswana Komakao Copper Mine, with a total investment of 900 million dollars. The project is expected to be put into production in the first half of 2028. This project is a key milestone for Minmetals Resources to create the world's second growth curve after the Las Bambas copper mine in Peru, and also brings a new focus to the global copper investment circle.

The project is located in the Kalahari copper mining belt in Africa, a high-quality virgin land for global copper exploration. The expansion core is to build a beneficiation plant with an annual processing capacity of 4.5 million tons. After integrating existing facilities, the total processing capacity of the mine's ore will increase from 3.5 million tons per year to 8 million tons per year, and the mining scope will expand to multiple new deposits simultaneously. After the project is implemented, the annual copper production capacity will increase from 60000 tons to 130000 tons, and the annual production of associated silver will also increase from 1.6 million ounces to over 4 million ounces. In the context of high silver prices, by-products will become an important profit supplement.

The core competitiveness of this expansion lies in cost breakthrough. Currently, the cash cost of C1 copper mine in Komaco is $2.05/pound, and the target after expansion has been lowered to below $1.60/pound, a decrease of 22%. Against the backdrop of declining copper ore grades and increasing mining difficulty globally, this cost line will bring strong risk resistance. Even if copper prices fluctuate, it can ensure stable cash flow, and the mine still has the potential for expansion in the future. The long-term copper production capacity is expected to impact 200000 tons per year, and the third phase pre feasibility study plan is scheduled to start in 2026.

Behind the progress of the project is a mature strategy of multi-party collaboration. In terms of funding, Guoxin International holds a 45% stake and shares risks with Minmetals Resources, greatly reducing financial pressure; On the operational level, domestic mining giant Jin Chengxin has won the underground mining contract, replacing the original Australian team to build a more efficient and cost-effective foundation for cost reduction. At the same time, Royal Gold holds the silver metal flow rights, and multiple roles are playing their respective roles to promote project implementation.

The expansion of Minmetals Resources marks a new stage of refined operation for Chinese mining enterprises going global, bidding farewell to the extensive M&A model and instead competing for resource integration, cost control, and supply chain coordination capabilities. This also brings opportunities for domestic related enterprises to go global. Supply chain enterprises can connect with the procurement system to seize the southern African market, energy enterprises can layout green power supporting facilities for mines to reduce costs, and engineering service providers can intervene in the third phase pre feasibility study in advance to lock in subsequent orders with technological advantages.Editor/Bian Wenjun