Perenti Awarded US$235 Million Contract Expansion at Motheo

Perenti Limited's (ASX: PRN) African Mining Services (AMS) business has secured a significant contract worth US$235 million for open pit mining services at the A4 open pit within the Motheo Copper Mine in Ghanzi, Botswana. This expansion marks a major milestone for Perenti Limited (ASX: PRN), a leading mining services company, and reflects its strategic focus on growth within top-tier mining jurisdictions.

Expanding Presence in the Kalahari Copper Belt

The Motheo Copper Mine, located in the Kalahari Copper Belt, is a long-life asset with immense potential. The contract with AMS encompasses all surface mining services required for development and production activities at the A4 open pit. This pit is situated approximately 8 kilometers west of Sandfire Resources' existing T3 Open Pit, where AMS has already demonstrated its capabilities by transitioning from development to production successfully.

Synergizing for Enhanced Efficiency

Perenti anticipates commencing pre-production and development work at the A4 open pit in September 2023, with pre-strip mining operations set to begin in October 2023. Both the T3 and A4 open pits will operate as an integrated mining operation, leveraging the benefits of scale and operational synergies. These synergies include optimizing existing infrastructure, mining equipment, maintenance facilities, and overall technical and operational management.

Positive Outlook for Perenti

Mark Norwell, Managing Director & Chief Executive Officer of Perenti, expressed excitement about expanding the partnership with Sandfire Resources. The combined contracts for the T3 and A4 open pits are projected to generate total revenue exceeding A$1.1 billion. This substantial revenue will contribute to strong returns for Perenti and its shareholders. Perenti is committed to disciplined growth within high-quality mining jurisdictions, and this contract expansion aligns perfectly with that strategy.

Contributing to Botswana's Mining Industry and Community

Paul Muller, President of Contract Mining, highlighted Perenti's significant presence in the Kalahari Copper Belt since the commencement of operations in 2019. This expansion not only showcases Perenti's role as a leading international mining contractor but also emphasizes its contribution to the development of Botswana's mining industry and the broader community.

In summary, Perenti's contract expansion at Motheo represents a significant milestone in the company's growth strategy, positioning it as a prominent player in the Kalahari Copper Belt and reflecting its commitment to delivering strong returns to shareholders while contributing to local development.

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