OZ Minerals today outlined a clear pathway to doubling production, amid growing demand for modern minerals driven by global electrification.
At a market presentation on OZ Minerals’ province potential and growth outlook, CEO Andrew Cole outlined the company’s unique value proposition.
This included a suite of quality, long-life, low-cost, low carbon intensity operating assets in low-risk jurisdictions; key assets with brownfields expansions underway to increase production and extend mine Life; and near term greenfields developments such as West Musgrave approaching Final Investment Decision (FID) in the second half of 2022.
The CEO also noted the company had an extensive pipeline of growth opportunities; a strategy of mining modern minerals, focusing on copper and nickel; which is all framed by a backdrop of forecast significant demand for modern minerals and in an environment where economic projects in low-risk jurisdictions are scarce.
“We’ve spent the past seven years creating the company we have today with an abundance of choice and growth options, enabled by a track record of strong operational performance, project execution and prudent capital management.
We have evolved from a single open pit mine to three operating assets in two countries with expansions underway, and we are now developing these assets at speed into multi-generational mining provinces.
“Our next growth phase offers options to more than double copper equivalent production from circa 140,000 tonnes at present to over 340,000 tonnes per year”
Our next growth phase offers options to more than double copper equivalent production from circa 140,000 tonnes at present to over 340,000 tonnes per year.
Importantly, we have a culture of innovation, collaboration, agility, and inclusiveness: OZ Minerals is a place where people want to work. Our stakeholders identify with our strategy, which is now evolving to mining modern minerals as we position ourselves for the electrification era.
Our strategy is supported by a series of strategic aspirations which focus on decarbonising our operations, lowering our environmental impact, automation, and digitalisation, as well as advancing our culture.
Over the past 7 years we’ve built a company culture and suite of assets that have delivered a 780% return to shareholders. We’re now poised for our next chapter of growth.”
OZ Minerals’ core metals of copper and nickel are some of the most widely used across the clean energy transition.
Copper is expected to play a key role in renewable energy as vital components in wind turbines and solar panels, as well as grid infrastructure and electric vehicles essential to supporting global electrification.
The company reports that unique, long-life, low-cost assets in low-risk jurisdictions underpin OZ Minerals’ growth options to more than double its production in copper equivalent terms.
Rather than just developing a single asset, OZ Minerals looks for province potential where a hub can be established for wider extraction opportunities.
With only 57% of the company’s existing Resources currently outside of Reserve, there is considerable optionality and upside embedded in the portfolio.
The company notes additional greenfields opportunities include OZ Minerals’ West Musgrave copper nickel project in Western Australia, which is on track for a Final Investment Decision later this year, as well as the potential Kalkaroo copper project in South Australia, which is subject to Havilah Resources’ shareholder vote on 31 August 2022.
Images: OZ Minerals Ltd
