- Higher grades and expansion plans support production growth as the mine targets a major output increase
GAZETTE REPORTER
Khoemacau produced 11,423 tonnes of copper in copper concentrate during the second quarter of 2026, representing a 7 percent increase from the previous quarter and broadly matching production levels recorded during the same period in 2025.
The figures are contained in the second quarter production report for the three months ended 30 June 2026 by MMG Limited, the parent company of Khoemacau.
Ore milled volumes declined by 6 percent year-on-year, but the impact was largely offset by improved copper grades, which increased to 1.62 percent from 1.59 percent in the second quarter of 2025. Metallurgical recovery remained stable at 88.2 percent, compared with 88.5 percent during the same period last year.
“Higher grades were primarily attributable to the current mining sequence and access to higher-grade zones within the Zone 5 orebody as mining activities advanced,” the report stated.
The company said access to higher-grade mining areas is expected to continue throughout the remainder of 2026.
Mining Challenges
Khoemacau recorded lower ore mined volumes compared with the same period last year, mainly due to previous development delays and reduced equipment availability during the quarter.
The company said it continued to focus on development priorities while advancing the refurbishment of older equipment. New equipment units are expected to ease operational constraints and improve performance in the coming quarters.
Silver production reached 370,877 ounces during the quarter, representing a 13 percent increase compared with the previous quarter, but a 6 percent decline year-on-year. MMG attributed the annual decline mainly to lower ore throughput.
2026 Outlook
Khoemacau’s copper production guidance for 2026 remains unchanged at between 48,000 and 53,000 tonnes.
“Although first-half production was affected by development delays and equipment availability constraints, the operation is expected to benefit from improved equipment utilisation, the introduction of new mining equipment, continued access to higher-grade mining areas and the progressive commissioning of refurbished fleet units in the second half of the year,” the report said.
The mine’s C1 costs for the first half of 2026 were US$1.25 per pound, below the previous full-year guidance range of US$2.00–2.30 per pound. The company attributed the lower costs primarily to higher-than-anticipated silver prices.
Following first-half performance and current market conditions, Khoemacau revised its 2026 C1 cost guidance downward to US$1.70–2.00 per pound.
Expansion Plans
Khoemacau is pursuing a major expansion project aimed at increasing copper production to 130,000 tonnes of copper in copper concentrate annually, with associated silver output expected to exceed 4 million ounces per year.
The expansion will involve construction of a new 4.5 million tonnes per annum processing plant and extending mining operations to the Zone 5 North, Mango and Zeta North-East deposits.
Construction activities progressed during the quarter, with engineering, procurement and site works advancing. Key milestones included completion of foundation backfilling in the milling area and flotation area excavation, while bulk earthworks and boxcut development continued according to plan.
First concentrate production from the expansion project is expected in the first half of 2028.
Khoemacau said the life-of-mine average C1 cost is expected to remain below US$1.60 per pound, subject to prevailing silver prices and other planning assumptions.
The company has also identified potential for further expansion of up to 200,000 tonnes of copper in copper concentrate annually, with a pre-feasibility study underway to assess the scope, development pathways and economics of a possible expansion beyond the approved 130,000-tonne-per-annum project.