Olympic Dam shelving means costs in SA fall

Oz Minerals boss says costs in SA’s mining sector are falling because of the decision to shelve the Olympic Dam expansion.

Oz Minerals boss says costs in SA’s mining sector are falling because of the decision to shelve the Olympic Dam expansion.

After releasing quarterly production results yesterday, Oz Minerals managing director Terry Burgess said both labour and contractor costs were falling, Adelaidenow reported.

"My message very loudly in South Australia is the bubble that was created around the Olympic Dam expansion can't be sustained," he said.

"Not only am I saying that, but I think BHP is saying that as well."

The report showed that Oz Minerals produced 25,738 tonnes of copper and 35,111 ounces of gold contained in concentrate at Prominent Hill, meaning the company is on track to meet its full-year guidance.

Burgess also announced "outstanding" results from drilling at the Carrapateena deposit, which is on schedule fo to be upgraded from inferred to indicated under the JORC code early next year.

Meanwhile the Ankata underground mine moved into full production and now delivered 25 per cent of the copper production as its ore joined the flow from the Malu open pit mine.

Surface drilling around Prominent Hill has been halted until 2013 as the company plans to review results of the program.

Positive production results will come as good news to the company who earlier this year reported a 53 per cent drop in net profit to $274.5 million for calendar 2011.

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