Oz Minerals identifies another A$25m in savings
PERTH (miningweekly.com) – Copper miner Oz Minerals on Friday told shareholders that the company had identified a further A$25-million in cost savings, in addition to the A$20-million already achieved.
In late 2015, the South Australian copper miner launched a targeted programme to drive down costs by working with contract partners to reach a more competitive pricing regime, and to identify internal efficiencies.
The initial cost saving programme focused on supplier and corporate contract renegotiations, operational efficiencies and a salary freeze for all employees, including executives and board members.
“Our strategic partners are working collaboratively with us to substantially reduce our costs,” said COO Bob Fulker.
“By rebasing our cost structure now, we will improve our ability to meet or exceed guidance and take full advantage of the growing opportunities in this counter-cycle.”
MD and CEO Andrew Cole pointed out that the next stage of the cost savings programme would focus more on supplier contracts and internal productivity.
“An important part of our strategy is to be a lean business and operate in the bottom half of the cost curve. We are determined to drive costs down even further to set ourselves up for future growth,” Cole said.
In addition to the cost savings programme, another demobilisation of equipment and personnel at the Prominent Hill openpit mine was completed in March.
Cole noted that, in total, one excavator and 14 trucks were removed from the operations.
Since the review of the strategic plan and the Prominent Hill mine plan last year, the decision to bring forward the openpit mine plan would save an additional A$60-million over the life of the openpit.
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