BHP goal 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 challenge in WA, simply six weeks after it rejected an $8.4 billion takeover bid from assets big BHP as opportunistic.

The Adelaide-based miner stated it plans to start out 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 car batteries will enter a sustained interval of undersupply.

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

The development price of $1.7 billion excludes energy technology, the truck fleet and employee’s lodging that might be supplied 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 larger ore processing capability of 13.5 million tonnes a yr and considerably larger nickel and copper manufacturing within the first 5 years.

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

Current stories have speculated that BHP could await the West Musgrave closing funding determination earlier than making a second transfer at Oz after its $25 a share supply in early August fell flat.

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