SMM copper morning comment: Growing risk aversion lowered copper prices

ACG Metals announced on September 1 that its Gediktepe mine in Türkiye produced its first copper concentrate on August 31, marking the start of the ramp-up phase. The company will progressively increase throughput and optimise plant performance, targeting full production by the end of 2026. Gediktepe’s steady-state annual production target is 20,000–25,000 tonnes of copper equivalent. The full announcement also confirmed that the mine produced its first zinc concentrate in August 2026, although the specific date and volumes were not disclosed. SMM estimates the mine’s zinc-in-concentrate production at approximately 10,000–15,000 tonnes of contained zinc in 2026.

Epiroc has secured an approximately SEK610 million (US$64 million) order from MMG Limited and its mining contractors, China Huaye and 23MCC, for underground mining equipment to support the expansion of the Khoemacau Copper Mine in Botswana. The order includes face drilling rigs, production drilling rigs, cable-bolting rigs, loaders and underground mine trucks, together with remote-control systems, spare parts, training and on-site technical support. The equipment will support MMG’s ongoing Khoemacau expansion, which is designed to increase annual production capacity from approximately 60,000 tonnes to 130,000 tonnes of copper metal in concentrate. The project includes construction of a new 4.5 Mt/y processing plant, which will lift total milling capacity to more than 8 Mt/y, alongside development of Zone 5 North, Mango and Zeta North-East. First copper concentrate from the expansion is expected in H1 2028. Epiroc said delivery of the new underground fleet will begin in Q4 2026 and is expected to be completed by Q2 2028, broadly aligning with the expansion schedule. The ordered fleet includes Boomer face drilling rigs, Simba production drilling rigs, Cabletec cable-bolting rigs, Scooptram loaders and Minetruck underground trucks, with several units equipped for automation and remote-control operation. The equipment order represents another execution milestone for the already-approved Khoemacau expansion, rather than a new production target. With procurement progressing and equipment deliveries scheduled through Q2 2028, the project continues to advance toward MMG’s planned increase in copper-in-concentrate capacity to 130,000 tonnes per year. The expansion represents a significant planned increase in Khoemacau’s copper production capacity in Botswana’s Kalahari Copper Belt.