Name of the Project
West Musgrave base metals project.

Location
West Musgrave Ranges of Western Australia.

Project Owner/s
Copper/gold miner OZ Minerals.

Project Description
The West Musgrave includes the Nebo-Babel nickel/copper and Succoth copper deposits and is considered to be one of the world’s biggest, lowest-cost and lowest-emissions copper/nickel projects.

The processing capacity has increased from 12-million tonnes in the December 2020 updated prefeasibility study (PFS) to 13.5-million tonnes in the 2022 feasibility study 

The 2022 feasibility study envisages average nickel production at 35 000 t/y nickel and 41 000 t/y copper in the first five years, and 28 000 t/y nickel and 35 000 t/y copper over a 24-year life-of-mine.

The project aims to source about 80% of its renewable energy from wind and solar, and includes a pathway to net zero Scope 1 emissions by 2038.

Potential Job Creation
The project is expected to create about 1 500 jobs during construction and about 400 jobs in ongoing operations.

Net Present Value/Internal Rate of Return
The 2022 feasibility study estimates a net present value of between $1.5-billion to $2.2-billion on capital of $1.7-billion, and an internal rate of return of between 18% and 22%, with project payback estimated at 6.5 to 7.5 years.

Capital Expenditure
$1.7-billion.

Planned Start/End Date
First concentrate is targeted for the second half of 2025.

Latest Developments
OZ Minerals has taken a final investment decision (FID) on the A$1.7-billion West Musgrave copper/nickel project.

All key regulatory approvals for the project are in place, and OZ has signed a land access agreement with Traditional Owners in the region, and secured a A$1.2-billion syndicated funding facility from key relationship banks, subject to final binding agreements.

With the FID now taken, the OZ Minerals team will award major contracts, increase capacity at the mining camp, mobilise equipment to start earthworks and finalise the power purchase agreement and Living Hub agreements.

OZ Minerals fielded a surprise A$8.4-billion takeover offer from major BHP in August this year, which had offered the copper company A$25 a share.

OZ Minerals said at the time that the offer did not reflect the company’s unique investment proposition, as it is the only primary copper company in the ASX100; the low carbon intensity of the company’s assets, relative to its peers; or the quality of the company’s growth projects, which includes the West Musgrave asset.

Key Contracts, Suppliers and Consultants
Not stated.

Contact Details for Project Information
OZ Minerals, tel +61 8 8229 6600 or email info@ozminerals.com.