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OZ Minerals invests $916m to Carrapateena mine development

Projects

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Posted by Monica Gameng

OZ Minerals will be investing approximately $916 million for the development of the Carrapateena copper-gold mine in South Australia, the country’s largest undeveloped copper project.

The mine is expected to begin production by the second half of 2019, with an estimated output of 65,000 tonnes of copper as well as 67,000 ounces of gold on average for over a 20-year period. The project is also expected to create up to 1,000 jobs for the region during construction and operations.

Oz Minerals is planning to commence a phased construction program at the Carrapateena mine in September 2017 after the company released its feasibility study for the site.

“This decision is a significant enabling step in realising our strategy to become a low cost multi asset copper miner delivering value for all stakeholders,” OZ Minerals Chairman Rebecca McGrath said.

The planned construction program will be done in two phases. The first phase will involve site infrastructure which includes the accommodation village and airstrip as well as continuing development of a dual access decline at the mine.

Phase two – which is subject to mining lease approval – is expected to begin in the second quarter of 2018 and will involve the construction of a processing plant and other above ground infrastructure. The second phase will also include installation of the underground materials handling system, construction of the tailings storage facility as well as access roads and power access.

“Carrapateena is now firmly established as a high quality project in its own right with opportunities identified including expanding the existing cave footprint and accessing satellite deposits.

“It also serves as a base for potential district development of nearby Fremantle Doctor and Khamsin. These future expansion options have been enabled by the improved mine design, but remain an upside to the current valuation,” OZ Minerals Chief Executive Officer Andrew Cole said.

In conjunction with Oz Minerals’ investment announcement, NRW Holdings has announced that its participation in the Early Contractor Involvement (ECI) process for the project is nearing completion and is now ready to finalise contract negotiations for package one with Oz Minerals.

NRW’s package one contract – valued at about $111 million – will include the construction of an access road, tailings storage facility, quarry and an airstrip.

“NRW has worked closely with OZ Minerals during the Early Contractor Involvement process to identify cost benefits and cost certainty across the project, from design optimisation and constructability through to project scope sequencing and resources scheduling,” NRW Managing Director Jules Pemberton said.

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Source: Australian Mining (1, 2) and Premier of South Australia

Monica Gameng

Monica Gameng

PlantMiner's Marketing Assistant who is a chocoholic, beach lover, frustrated photographer, animal lover and techie marketeer.