Parts palaver delays Carrapateena concentrate

DELIVERY of the wrong parts for the mineral processing plant has caused OZ Minerals to push back the target date for first saleable concentrate production from its Carrapateena copper-gold mine from November to December.
Parts palaver delays Carrapateena concentrate Parts palaver delays Carrapateena concentrate Parts palaver delays Carrapateena concentrate Parts palaver delays Carrapateena concentrate Parts palaver delays Carrapateena concentrate

Delivery of the wrong parts has set back first Carrapateena concentrate production.

The correct parts have been sourced and remediation works are underway.

OZ Minerals CEO Andrew Cole said the postponement of first concentrate production was disappointing, considering the remainder of the project construction was either complete or nearing completion.

However, he said it would have no influence on the project ramp up in 2020 given the advanced stage of the underground development.

"More than 200,000t of ore is now stockpiled in preparation for commissioning of the minerals processing plant and underground development and installation of underground infrastructure is progressing well," Cole said.

As a result of the delay the 2019 production guidance provided for Carrapateena of 2000-4000t of copper and 3000-6000 ounces of gold has been removed.

Growth capital expenditure for Carrapateena remains at $540-$570 million.

However, with the delay of the first concentrate milestone, concurrent mine development and underground infrastructure will continue to be allocated into pre-production capital.

The project development cost of Carrapateena at first concentrate is now expected to be in the $950-$980 million range as a result.