Staff Reporter
WINDHOEK, Sept. 21 — The Omitiomire copper project in Namibia, which faced delays in recent years, is now back on the path to development under its new majority owner, Omico Mining Corporation (Omico). The project is making significant progress with a Bankable Feasibility Study (BFS) slated for completion by the end of this year.
Situated approximately 140 km northeast of Namibia’s capital, Windhoek, the Omitiomire deposit is part of the Ekuja dome inlier and was initially discovered by the General Mining and Finance Corporation in the 1970s.
In 2008, the project was acquired by the Australian junior company, International Base Metals Limited (IBML), which invested approximately US$20 million in the project. IBML conducted extensive drilling, accumulating around 85,000 meters of drill data. In 2013, a Bankable Feasibility Study was also conducted, primarily focused on a proposed small-scale oxide operation, seen as a precursor to a larger-scale sulphide operation that would involve ore treatment in a flotation plant.
Greenstone, a UK-based private equity fund co-founded in 2013 by Mark Sawyer, with prior senior roles at Xstrata and Rio Tinto, is currently overseeing the project. Explaining Greenstone’s involvement, Sawyer mentions that their fund had always favoured copper projects and decided to invest in Omitiomire in 2019 after reassessing prior work on the project.
The transaction was finalized in the same year, resulting in Greenstone becoming the majority shareholder in the project. Omico, jointly owned by IBML (46.3%) and Greenstone (53.7% through an earn-in agreement upon BFS completion), holds the majority stake in Craton Mining and Exploration, the Namibian company with the mining license. A 5% interest in Craton is held by a Namibian-incorporated ESG trust, and Omico manages the project.
Sawyer notes that despite IBML’s substantial time and capital investment, they couldn’t realize the project with their chosen processing strategy. IBML had primarily aimed at developing a large-scale sulphide project utilizing a flotation process, but the financial viability did not align with their expectations.
“They were hoping that a small starter project based on mining the oxide cap and processing it through a heap leach and solvent extraction/electrowinning (SX/EW) plant would fund the larger project. However, this proved unviable as the oxides couldn’t cover the cost of the SX/EW,” says Sawyer.
A pivotal moment for Greenstone was the discovery of a report hidden within the project data and documentation suggesting that the entire orebody might be amenable to leaching, not just the oxide cap.
“This discovery changed the game for us, as it meant we could potentially develop the entire orebody in one phase, instead of having to phase it over two stages,” he explains.
“We commissioned several additional studies to confirm this hypothesis, and the results were highly encouraging. We are now confident that we can establish a large-scale, cost-effective copper mine at Omitiomire using a leaching process.”
The Omitiomire project is anticipated to produce 25,000 tonnes per annum of cathode copper over a mine life of at least 15 years. The BFS is scheduled for completion by the end of 2023, and, pending a favourable outcome, construction is set to commence in 2024, with initial production expected in 2026.
This project holds the potential to generate numerous jobs and contribute significantly to Namibia’s economy. It is also expected to play a pivotal role in helping the country achieve its decarbonization goals, as copper is a vital component in the production of electric vehicles and renewable energy technologies.
The revival of the Omitiomire copper project stands as a substantial milestone for Namibia and its mining sector, showcasing the nation’s abundant mineral resources and its commitment to attracting foreign investment.
