Spurred by strong global demand for copper, Sandfire Motheo Operations, which runs a copper mine near Ghanzi, expects to pay between $100 million and $150 million in taxes in the coming financial year, company executives have disclosed.
Speaking at the recent mining summit in Gaborone, Sandfire Director and Asset President Jamie Carratti told delegates that the company is already a major contributor to Botswana’s economy.
“In FY24, our economic contribution was in the range of about $4 billion. In taxes alone, our expected tax contribution in the coming year is going to be in the range of $100 million to $150 million,” he said.
“We are going to be one of the biggest economic contributors to the Botswana economy. Over the next 10 years, we are expecting to put about $38 billion into the economy.”
Carratti said the company remains committed to creating long-term value in Botswana.
He emphasised Sandfire’s commitment to engaging local companies and integrating them into its supply chain.
“From FY24 to December 2025, we spent over $660 million, of which 23 percent was with citizen-owned companies, 63 percent with local suppliers that are Botswana-registered but not citizen-owned, and 13 percent with foreign-owned suppliers,” he said.
“We had a rapid ramp-up to production capacity, moving from 3.2 million tonnes, which was the original plant we built, to 5.2 million tonnes and now 5.6 million tonnes per year. In the first half of 2025, we achieved about 28,600 tonnes of copper. This year, we are on track for about 59,000 tonnes and continuing to push forward,” Carratti said.
“As we spoke about before, 462 companies, more than 50 percent of the companies that we operate with, fall within that 23 percent category. Our goal is to create higher-value contracts with these groups and expand that 23 percent significantly. That is both our challenge and our opportunity as a company.”
The Sandfire Motheo project was delivered on time and within budget during the Covid-19 pandemic, with commercial production commencing on July 1, 2023.
“We had a rapid ramp-up to production capacity, moving from 3.2 million tonnes, which was the original plant we built, to 5.2 million tonnes and now 5.6 million tonnes per year. In the first half of 2025, we achieved about 28,600 tonnes of copper. This year, we are on track for about 59,000 tonnes and continuing to push forward,” Carratti said.
“Investment-wise, the facility represented about half a billion dollars and included the development of the processing plant, which has since been expanded.”
According to Carratti, Sandfire is also considering the development of an additional mining area alongside its existing operations.
“Our expected taxation rate over the life of mine is going to be in the range of about 32 percent. We don’t mind paying tax because it means we are making money,” he said.
“We also want to contribute to the local economy. For us, taxation is not a curse. Taxation is a sign that we are actually making money and creating economic value.”
The company’s biggest challenge is that it has only seven years of mine life remaining under current estimates.
However, Carratti said Sandfire’s greatest opportunity and highest priority is expanding its resource pipeline through exploration across the region.
“We have just under 10,000 square kilometres of land. We have spent about $74.5 million on exploration to date. This coming financial year, we are going to spend another $20 million,” he said.
“We believe there is significantly more copper there than what we have found, and we are going to do everything we can to find it. We currently have 192 people working within our exploration team.”
Carratti said Sandfire is undertaking structural mapping to identify potential new deposits.
“Ideally, it is right next to our processing facility because that makes it far easier,” he said.
“But we are going to continue exploring this area because we believe there are significantly more deposits to be found.”
In addition, Sandfire has received authorisation to construct a 21-megawatt solar power facility.
The company is currently engaging with both Botswana Power Corporation and Botswana Energy Regulatory Authority on implementation plans.
“Our intention is to have it completed and approved by the end of this year,” Carratti said.
