PERTH (miningweekly.com) – The Western Australian Environmental Protection Authority (EPA) has backed copper/gold miner Oz Minerals' plans for its West Musgrave operations.
Oz Minerals is proposing to develop two openpits, accommodation, an airstrip and processing facilities 100 km east of Warburton, near the South Australian and Northern Territory borders.
A 2019 prefeasibility study estimated that the project could have a mine life of 26 years, producing at a yearly rate of 28 000 t of copper and 22 000 t of nickel in concentrates.
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.
The project is committed to achieving net-zero greenhouse-gas (GHG) emissions by 2040 and has been recommended for approval by the EPA.
The EPA on Friday stated that its environmental impact assessment found the proposal could be implemented subject to strict conditions relating to cultural heritage, flora and fauna, inland waters and GHG.
EPA chairperson Prof Matthew Tonts said the recommended conditions, as well as the proponent’s adoption of renewables and a commitment to delivering against a trajectory of net-zero GHG emissions by 2040, meant the proposal was generally consistent with the EPA’s GHG guidelines.
The EPA noted West Musgrave was the first mining project it had assessed that had committed to net-zero GHG emissions by 2040.
Tonts said that as part of the assessment, members of the EPA had visited traditional owners at the Jameson community, 25 km north of the proposal site.
“The Ngaanyatjarra People told us of the need to continue to fulfil their cultural obligations to the land and connections to their dreaming (Tjukurrpa), as well as their desire to ensure future generations could maintain and engage in cultural activities on country,” he said.
“We have been very aware of this cultural heritage throughout the assessment. This means the EPA’s recommended conditions have carefully considered the cumulative impacts of future projects on the environmental and social values of the area.”
Oz Minerals has previously said it was hoping to take a final investment decision on the West Musgrave project by the second half of this year, pending progress on value uplift options.
Further value opportunities being considered include increasing production above the current 12-million-tonne-a-year capacity, while contemplating a third vertical roller mill that could enable further energy management and emission reductions, and accelerating towards aspirations of a zero emissions mine and mining fleet.
Oz Minerals is also weighing renewable energy power plant construction and operation ownership options and examining the construction of a downstream nickel processing plant on site, and seeking interest from third parties in its potential development.