OZ Minerals Gives Its Final Investment Approval for the Development of $1.13BN Copper Project in Australia

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OZ Minerals has given its board’s final investment approval for developing the West Musgrave copper-nickel project. 

OZ Minerals Ltd (OZML) is a mining firm focusing on exploring and developing copper, gold, and silver deposits. OZML is interested in the Prominent Hill open pit copper-gold-silver mine, the Carrapateena underground Iron Oxide Copper-Gold mine, and a concentration plant (CTP) in South Australia. 

“The board’s decision to commit to the development of West Musgrave follows a comprehensive review of OZ Minerals’ copper portfolio undertaken over the past 12 months,” said Andrew Cole, managing director and CEO.

oz minerals

“West Musgrave is an exceptional project that will deliver substantial value for our shareholders. Importantly, it also provides us with optionality and the opportunity to create further value through exploration upside and the potential to develop a second stage operation.”

The firm performs exploration operations at Khamsin, West Musgrave, Fremantle Doctor, and other areas of the Gawler Craton’s potential region.

All necessary regulatory authorizations were obtained, and a land access agreement is in place with the Ngaanyatjarra people.

The project is located in the West Musgrave region of Western Australia and is expected to create around 1,500 jobs during construction and 400 jobs in ongoing operations. 

West Musgrave will be one of the world’s most significant copper-nickel projects and have some of the lowest emissions rates.

The study area spans Australia’s Kimberley region, known for its significant mining industry. The project entails the Nebo and Babel nickel-copper deposits and the Succoth copper deposit, which will require an investment of about A$1.7 billion.

The firm plans to achieve its first concentrate on the project in the second half of 2025. It has become increasingly clear that to complete the project in the stipulated timeline, the firm will need to dedicate more resources in the form of time and human resources.

Furthermore, the mining firm has signed credit-approved commitment letters with major relationship lenders for a syndicated term loan arrangement of A$1.2 billion to extend the project’s development.

This project is expected to be one of the world’s largest mines fully powered by a hybrid of renewable sources, with an initially estimated usage of 80% renewables.

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