Copper miner Oz Minerals will invest AUD600mn ($434.8mn) towards shaft expansion at its Prominent Hill mine in South Australia to extend its mine life and raise production capacity.
This outlay will be used to build a hoisting shaft to lengthen the lifespan of the mine to last through 2036 and also give it access to 67mn mt of additional deposits and improve ore production capacity by around 6mn mt per year.
The Wira shaft is also expected to cut emissions and operating risks by 27pc as well reducing operating costs by 20pc, which is equal to $14-20/mt. The installation of the shaft is expected to begin in the first quarter of next year and will be completed by 2024.
Oz’s investment will also implement a trucking operation, which is expected to increase total ore production volumes from 4.5mn mt to about 5mn mt annually, starting next year. After 2025, copper production is expected to increase by 23pc to 53,000mt annually.