Altair Minerals (ASX:ALR) is taking BHP (ASX:BHP) to South Australia’s Wardens Court after disputing the mining giant’s plan to build an infrastructure corridor for its neighbouring Oak Dam deposit.
BHP’s development plans for its Oak Dam deposit include a proposal to construct an access road and infrastructure corridor which directly connects Oak Dam to the Olympic Domain highway through applying for a miscellaneous licence.
If granted, the tenements enable BHP to construct twin declines and the supporting infrastructure needed to allow underground access to the deposit where controlled, targeted exploration can continue closer to the ore body.
Following BHP’s submission, Altair rejected the application under its right within the South Australian Mining Act 1971, after which, both companies negotiated alternative arrangements.
BHP presented an offer to Altair, which the company believes “significantly undermines” the value for the Olympic Domain Project. Altair subsequently provided a counteroffer, however, neither party reached an agreement.
Altair, which has a market capitalisation of $50 million, says it will continue to defend the fair value of its rights and the core value of its asset. The company notes the proceedings will have no material impact on its cash position or towards its anticipated exploration programs.
To date, drilling has defined numerous areas of mineralisation at Olympic Domain, which requires follow-up exploration.
Altair says these programs can only be executed either free from infrastructure impediments and liabilities pertaining to BHP’s development plans or if BHP is able to provide a suitable offer for the inherit project value and its exploration rights.
The Olympic Domain Project, covering 267km2, represents an iron-oxide copper-gold asset located in the Gawler Craton of South Australia.
The Oak Dam deposit contains a resource of 1.34 billion tonnes @ 0.66% copper and 0.33 grams per tonne gold.
Write to Aaliyah Rogan at Mining.com.au
Images: BHP
