Carrapateena ahead of schedule despite $150m spending cut

Core samples at Carrapateena. Image: OZ Minerals.

OZ Minerals has not experienced any production impacts at its mine sites, leading the company to retain its full year guidance despite deferring around $150 million in growth capital.

This could be extended beyond 2021 if required, including non-time critical capital at the Prominent Hill copper-gold mine in South Australia.

OZ Minerals aims to focus on critical, low-cost metal production and preserving jobs.

Plant ramp up at the Carrapateena copper-gold mine in South Australia continued to progress ahead of plan.

“To date we have not experienced any significant disruptions at our sites, however plans are in place to respond should conditions deteriorate,” OZ Minerals chief executive Andrew Cole said.

“Whilst the circumstances remain fluid, an extensive range of preventative and contingency measures have been actioned across the company to ensure our employees remain safe and our sites continue to operate.

“We have planned for a range of scenarios including operating with a South Australian workforce only, extending rosters to enable isolation of sites through to ‘care and maintenance’.”

Cole said border closures in South Australia would have limited impact on the operation of Carrapateena and Prominent Hill, with over 85 per cent of the company’s workforce based in the state.

The introduction of flexible work arrangements for OZ Minerals’ non-frontline workers over the past 18 months has also allowed a seamless transition to the current remote working environment.

Should Carrapateena proceed to feasibility study, low cost set-up activities will take place this year.

Its ore stockpile stood at around 305,000 tonnes, with the first containers of concentrate trucked to the port.

OZ Minerals still expects Carrapateena to reach 4.25 million tonnes a year run rates by year-end.

The company has not experienced any material change in concentrate demand or shipping schedules for this year.

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