OZ Minerals’ Carrapateena copper-gold mine on track for pre-Christmas production
South Australia’s new $900m-plus, copper-gold mine in the Far North is on track for first production before Christmas.
SA copper-gold miner OZ Minerals is on track for first production from its under-development $900 million-plus Carrapateena mine before the end of the year.
The company, which released its second quarter report to the end of June on Tuesday, said it had stockpiled 46,000 tonnes of ore at the mine site, 160km north of Port Augusta, and was on schedule for first concentrate in the fourth quarter.
OZ Minerals expects to produce between 2000 and 4000 tonnes of copper and 3000-6000 ounces of gold from Carrapateena in 2019.
The owner of the operating Prominent Hill copper mine, 130km southeast of Coober Pedy,
also updated its overall copper and gold guidance for the full year to include numbers from its Antas mine in Brazil.
Prominent Hill produced 26,959 tonnes of copper in the second quarter, up 5.4 per cent from the previous quarter, but gold production fell to 25,810 ounces.
Full year copper production guidance is between 103,000 and 115,500 tonnes with the inclusion of 6000-6500 tonnes from Antas.
Gold production is forecast at 122,200-135,600 ounces, including Antas’ contribution of 4200-4600 ounces.
Earlier this month, OZ completed an evaluation of the Brazilian assets acquired as a result of its $430 million takeover of Avanco in 2018.
“At the midpoint of the year we can mark progress right across the portfolio on delivery of our growth strategy,” managing director Andrew Cole said.
“Both major assets, Prominent Hill and Carrapateena, are on plan.
“The strategy for realising value in the Carajás and Gurupi provinces in Brazil has been released, West Musgrave study work has advanced, and two new exploration earn-in agreements were established.
“Prominent Hill production is on track to achieve guidance and ramp-up of the underground progressed.”
Mr Cole said the company had a strong pipeline of projects which it was keen to get into production.
“Copper is going to be an inincredibly important commodity for all of us.
“As we see a higher uptake of renewable energy and electric cars, we like to think that there will be growing demand for copper.”
OZ Minerals cash balance was at $187 million at the end of June, following a $177 million spend on Carrapateena.
This figure will be further reduced due to ongoing expenditure on growth capital.
Decline development at Carrapateena has reached over 15,000 metres at a vertical depth below surface of 630 metres and the primary ventilation circuit to the first production level is now in place, the company said.
“Above ground, the minerals processing plant and non-process infrastructure construction and procurement is approximately 80 per cent complete, the tailings storage facility is over
90 per cent complete and stringing of the electricity transmission line is completed.”
Mr Cole said the main focus was on continuing to deliver to plan at Prominent Hill and advancing safely towards construction completion at the Carrapateena project.
“We expect to provide updates in Q3 on the Prominent Hill Haulage Feasibility Study which is an important aspect of the Prominent Hill Expansion Study.”
RBC market analyst Paul Hissey said in a note to clients the successful delivery of Carrapateena would be a key catalyst for OZ.
“Prominent Hill continues to be the focus of quarterly reporting, with stronger copper production (grade-driven) offsetting lower gold volumes.
“However, sales were significantly lower than production and, at a first glance, this appears to drive the delta in the cash balance line.
“We reiterate our view that successful delivery of Carrapateena over the next 12 months is the key anticipated catalyst for OZL,” Mr Hissey said.