Melbourne-based OZ Minerals has completed a pre-feasibility study (PFS) on its Carrapateena copper and gold project in Australia, claiming that it can generate $20.58bn of revenue during its mining life.
According to the PFS, the project will support mining for 24 years at a production rate of 12.4 million tonnes a year.
Carrapateena is expected to produce around 114,000t of copper and 117,000oz of gold a year.
Carrapateena copper and gold is located 130km north of Port Augusta in South Australia and around 100km south-east of BHP’s copper-uranium Olympic Dam mine, and the company expects each pound of copper from the project to cost $0.49 to produce.
OZ Minerals CEO and managing director Terry Burgess said: “We have reviewed in detail numerous copper-gold projects around the world over the past five years and there are very few like Carrapateena which offer the potential of multi-decade production at low operating costs, with the demonstrated potential for further discoveries nearby, located relatively close to all necessary infrastructure and in one of the best and safest mining jurisdictions in the world.
“We believe these features will be highly attractive to potential partners to join with OZ Minerals in advancing the development of the Carrapateena project.”
The company is looking for partners to raise around $3bn for the required construction of the mine.
The 18 month study will cost $18m, which included metallurgical testwork and geotechnical drilling, managed by Aecom.