OZ Minerals and AGL Energy update market on impact of SA storm

BHP Billiton and Oz Minerals have temporarily shuttered operations at Olympic Dam and Prominent Hill.

Police direct traffic around the CBD in Adelaide after the power network went down. (AAP Image/David Mariuz)

The severe weather conditions and consequent power outage in South Australia have forced BHP Billiton and OZ Minerals to temporarily shutter operations at their flagship Olympic Dam and Prominent Hill mines, while utility AGL Energy has talked down any threat to its profit from the event.

Mining giant BHP said that despite backup power generators kicking into gear to allow the operation of critical infrastructure, it was unable to continue mining.

“Following the loss of power in South Australia, Olympic Dam was able to safely shut down,” the company said in a statement.

“Back-up generators are currently providing power to critical infrastructure and will allow a restart of operations when power is restored.”

There is no timeline on a return to normal operations at a site that produces globally significant amounts of copper, gold and uranium.

OZ Minerals (OZL) also said it was unclear when it could resume mining at Prominent Hill despite no damage being reported.

“The company has not yet received any definitive timeline as to when power will be restored to the site as suppliers determine the full extent of damage to their transmission networks,” the ASX-listed copper and gold miner said.

“The Prominent Hill site itself has suffered no damage and its generators are providing power for all essential services.”

OZ said all its staff were safe, a line echoed by utility AGL (AGL) as it informed the market the earnings guidance it put forward yesterday was yet to be threatened by the outage.

“AGL notes the unprecedented scale of the blackout and the potential for further severe weather in South Australia,” the group said.

“While ongoing assessment of the situation will be required, at this stage, AGL does not anticipate any material financial impact as a result of the outage.”

It comes as Arrium’s Whyalla plant also nears a “critical stage” in its own power outage.