MMG Limited (MMG) has entered two connected mining-services agreements worth up to US$1.31 billion to advance underground development at its Khoemacau copper project in Botswana.

The contracts, signed on 21 May 2026, cover:

1) Huaye Mining Services Agreement – Zone 5 and Zeta deposits • Counterparty: Huaye Botswana Mining Proprietary Limited, an associate of China Minmetals Corporation (CMC). • Scope: Mobilisation plus 60 months of underground mining. • Term: 67 months (May 2026–Dec 2031). • Annual caps: US$35 million (2026) and US$200 million each year from 2027–2031, giving a cumulative cap of US$1.04 billion.

2) MCC23 Mining Services Agreement – Mango deposit • Counterparty: MCC23 Botswana, an associate of CMC. • Scope and term mirror the Huaye contract. • Annual caps: US$25 million (2026) and US$50 million each year from 2027–2031, for a total cap of US$0.28 billion.

Pricing for both agreements was set at fixed rates derived from a competitive tender that assessed cost, technical competence, safety, and localisation plans. Each contract requires an advance payment of US$20 million, amortised over 12 months, with subsequent invoices certified monthly and payable within seven days.

The five-year service window, exceeding the three-year limit in Hong Kong Listing Rules, was endorsed by Somerley Capital Limited as standard industry practice, citing the 20-year mine life, need to secure specialist contractors, and comparable third-party contracts ranging from five to nearly eight years.

Because Huaye and MCC23 Botswana are associates of MMG’s controlling shareholder CMC, the transactions are classified as continuing connected transactions. All relevant percentage ratios fall between 0.1% and 5%, requiring disclosure, annual review and reporting but not independent shareholder approval. Independent non-executive directors confirmed the terms are fair, reasonable and in the ordinary course of business; interested directors abstained from voting.

MMG has put internal controls in place to monitor pricing compliance, utilisation of annual caps and independent audit review throughout the contract periods.

The Khoemacau expansion targets 73 million tonnes of mineral resources containing 5.7 million tonnes of copper and is expected to add two decades of mine life to the project.