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BHP target Oz Minerals hits go on $1.7b nickel mine

ASX-listed miner Oz Minerals has dedicated to constructing its $1.7 billion West Musgrave copper-nickel undertaking in WA, simply six weeks after it rejected an $8.4 billion takeover bid from assets large BHP as opportunistic.

The Adelaide-based miner stated it plans to begin manufacturing on the distant WA desert web site close to the NT and SA borders in late 2025 when it predicts the nickel market buoyed by demand for electrical automobile batteries will enter a sustained interval of undersupply.

Andrew Cole has led Oz Minerals for eight years after twenty years with Rio Tinto.Credit score:Ben Searcy

Oz Minerals chief govt Andrew Cole stated the choice unlocked one of many largest undeveloped nickel initiatives on this planet and manufacturing prices have been anticipated to be within the backside quartile.

The development price of $1.7 billion excludes energy era, the truck fleet and employee’s lodging that shall be offered by third events.

The associated fee to construct West Musgrave has risen $600 million since late 2020 however the up to date design has a 12 per cent greater ore processing capability of 13.5 million tonnes a yr and considerably greater nickel and copper manufacturing within the first 5 years.

Oz has secured a $1.2 billion 18-month bridging mortgage facility to assist early building whereas it considers long-term funding choices that embody companions desirous to safe offtake for the supplies they should decarbonise.

Latest studies have speculated that BHP might look forward to the West Musgrave remaining funding resolution earlier than making a second transfer at Oz after its $25 a share supply in early August fell flat.

4-trailer street trains will truck West Musgrave output about 800km alongside largely unsealed roads to a hub at Leonora the place product for export shall be railed 600km south to the port of Esperance.

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