Copper guidance down for OZ Minerals

The Carrapateena mine in South Australia. Image: OZ Minerals

OZ Minerals has reduced annual copper production guidance for 2022, to reflect the softer start to the year, and further material handling system and equipment availability issues at its Carrapateena mine in South Australia.

In turn, group All In Sustaining Cost guidance has been increased by 17 per cent due to the lower production combined with current cost inflation of about 8 per cent.

COVID absenteeism and flooding that affected both Carrapateena and Prominent Hill during the first quarter resulted in lower first quarter production rates.

The company said the Prominent Hill plan is seeing quarter-on-quarter production improvement and annual copper production is expected to be at the lower end of the tightened full year guidance range.

However, Carrapateena’s remediation plan has been adversely impacted by further conveyor belt issues on the material handling system (resulting in a reduction of about 4300 tonnes of copper metal produced), as well as ongoing resourcing and supply chain issues impacting equipment availability.

A more comprehensive operational re-set plan is being established to lift production rates in the second half of the year to drive Carrapateena towards achieving a revised production guidance range of 55,000—61,000 tonnes of copper, with longer term guidance to 2025 unchanged.

About Ray Chan

Editor of industrial titles and mastheads with Prime Creative Media. Publications include Rail Express and Australian Mining (web content).

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