PERTH (miningweekly.com) – The Western Australian government has granted copper miner Oz Minerals the third and final regulatory approval for its West Musgrave project.
The ASX-listed Oz Minerals told shareholders that discussions were well advanced with the Ngaanyatjarra Council on finalising the mining agreement with significant progress made over the past several months.
The project is on track for a final investment decision during this final half of the year.
“West Musgrave is an exciting project, intended to be a modern mine, producing minerals in demand for a decarbonising world, providing value for all our stakeholders, particularly the Ngaanyatjarra community,” MD and CEO Andrew Cole said.
In addition to completion of the mining agreement with representatives of the traditional owners, the team is finalising various study components and continuing to assess the impact of cost inflation and the operational environment on project cost and schedule.
West Musgrave is currently nearing completion of the study phase. The project proposes mining copper and nickel from two orebodies, Nebo and Babel, via shallow openpits. The prefeasibility study update in December 2020 showed average yearly production of 32 000 t copper and 26 000 t nickel over a 26-year mine life.
Previous studies fond that based on a processing capacity of ten-million tonnes a year, the project is expected to require a capital investment of A$995-million, and will deliver average net cash flows of A$190-million a year.
Some 80% of the mine’s power will be from renewable sources using a combination of wind and solar with a focus on developing a roadmap to 100% renewables.