OZ Minerals’ $916m SA copper-gold mine gets final approvals

OZ Minerals has got the final state and federal approvals to proceed with its $916 million Carrapateena copper-gold underground mine north of Port Augusta.

File photo of OZ Minerals employee Debbie Alexander with a core sample at the Carrapateena mine site. Pic: Tait Schmaal.

• Brazil play: OZ Minerals’ lobs $444m offer for Avanco
• Carrapateena: OZ board nod for SA’s second biggest mine

OZ Minerals has got the final state and federal approvals to proceed with its $916 million Carrapateena copper-gold underground mine north of Port Augusta.

The project has received the Mining Lease and Environmental Protection and Biodiversity Conservation Act (EPBC) approvals, OZ Minerals said on Tuesday.

It followed the signing of a key Native Title Mining Agreement between OZ Minerals and the Kokatha Aboriginal Corporation in September last year.

OZ Minerals, which already owns the Prominent Hill copper-gold mine 130km southeast of Coober Pedy, said the approvals cleared the way for mobilisation of Phase 2 of the construction work at Carrapateena.

That phase includes the construction of processing and above-ground infrastructure, including the processing plant, tailings storage facility, underground materials handling system, access roads and power line.

Phase 1, which is currently underway and on budget involves construction of enabling infrastructure including a 550 bed accommodation village and airstrip, as well as the continued development of the dual access underground decline.

OZ Minerals chief executive officer Andrew Cole said the approvals, including one from the state government for its detailed Program for Environmental Protection and Rehabilitation concluded a significant amount of work on behalf of government departments.

The 4.25 million tonnes per annum Carrapateena project is one of the largest mines under construction in Australia and is expected to generate around 1000 jobs from construction through to production in late 2019.

Life of mine average annual production is expected to be 65,000 tonnes of copper and

67,000 ounces of gold.

Last week, OZ announced it had made a $444 million cash and scrip offer for Western Australia’s Avanco, which owns the small Antas mine and significant acreage in Carajas, Brazil — globally considered a high-grade copper province.

A pipeline of future opportunities is also being developed through six earn-in agreements with experienced explorers.