PERTH (miningweekly.com) – Copper/gold miner Oz Minerals has announced plans to cut the ramp-up time of its Carrapateena project, from 18 months to 12, following the production of its first saleable product at the South Australian operation in December last year.

Oz Minerals is targeting throughput rates of 4.25-million tonnes a year by the end of 2020 from Carrapateena, and between 4.7-million and 5-million tonnes from 2023 onwards.

CEO and MD Andrew Cole told shareholders on Wednesday that the company’s focus for 2020 would be delivering and further embedding the operational rhythm of its major projects, as well as safe and environmentally sustainable performance.

“As we develop the existing growth pipeline, our disciplined capital management framework will continue to be applied to ensure we prioritise and focus our efforts to create maximum value for shareholders and our other stakeholders and stay within our conservative gearing limits.

“As anticipated, we expect to draw on our debt facilities as the year progresses. Our intent remains to prioritise shareholder returns while continuing to invest in growth, primarily in Carrapateena, to improve cave establishment, enable a faster ramp-up and to increase annual throughput rates to target 4.7-million to 5-million tonnes a year from 2023, bringing value forward.

“Carrapateena now enters a faster, circa 12-month, ramp-up towards 4.25-million tonnes a year throughput rate by the end of 2020, dependent upon the cave performing as expected. We will test and optimise the plant in the first half of 2020, leading to gradual throughput and recovery increases which will drive progressively higher output in the second half, before turning cash positive in 2021,” Cole said.

Meanwhile, the miner on Wednesday reported that copper production for the fourth quarter ended December had reached 28 659 t, up from the 24 663 t produced in the previous quarter, while gold production reached 30 346 oz, up from the 27 072 oz produced in the previous quarter.

C1 cash costs for the quarter were nearly halved at 46.9c/lb, compared with the 83.4c/lb, on the back of stronger copper prices, lower fixed costs per pound of copper produced at the Prominent Hill operation, in South Australia, and less stope filling activities at the underground operation, as well as the absence of planned plant shutdowns.

“2019 was a year of major progress for Oz Minerals. We marked a fifth consecutive year of reliable performance at Prominent Hill, where we again achieved or surpassed our production and cost guidance,” said Cole.

Looking ahead to the rest of 2020, Oz Minerals is expecting copper production to reach between 83 000 t and 100 000 t, while gold production has been targeted at between 207 000 oz and 234 000 oz, at C1 cash costs of between 70c/lb and 80c/lb.