OZ Minerals has signed a deal to export copper concentrate from its Carrapateena mine in South Australia through SIMEC Mining’s Whyalla Port.
The contract marks the first major deal SIMEC has agreed to with a third party, with OZ Minerals set to ship its products via the port on a three-year term.
OZ Minerals chief financial officer Warrick Ranson said the opening of SIMEC’s ports to third parties had become a key advantage to exporting product.
“We are impressed with the capability SIMEC has managed to develop through the facility in recent years, and look forward to partnering with them to deliver our product to market,” he said.
“This contract justifies our investment in the port – particularly the installation of our state‐of‐ the‐art mobile harbour crane – as this wouldn’t have been possible with our old facilities.
“We will be able to transport this material safely, efficiently and with a high standard of environmental care; and expect our performance to lead to further long‐term contracts in the near future.”
Containers of OZ Minerals’ copper concentrate will be transported 165 kilometres from the Carrapateena mine to the port.
The concentrate will be shipped in 5000–10,000 tonne cargoes, with an expected increase in shipments as mining activity ramps up at Carrapateena.
“We’ve stated for some time that our port is open business, and the last few years have demonstrated that through the number and variety of trials we’ve undertaken,” SIMEC mining executive managing director Matt Reed said.
“To take that to the next level and secure an ongoing contract is testament to our increased capability; and an exciting step in the evolution of the Whyalla Port.”
State environmental controls have been put into place, which includes sprays to manage dust.
The new contract follows a long list of third-party trials at Whyalla Port.