Cyprium Metals, a copper developer focused on recommencing production at the Nifty Copper Complex in Western Australia, has entered into a non-binding Heads of Agreement (HoA) for a strategic alliance with global mining services provider Macmahon Holdings to accelerate Cyprium’s redevelopment of Nifty.
It is envisaged that Macmahon will take the lead role with the bankable feasibility study (BFS) and contribute internal engineering, planning, estimation and project management resources needed to complete the BFS and restart copper production, through an Early Contractor Involvement (ECI) contract and subject to stage gates. Cyprium will fund BFS costs related to work scopes not completed by Macmahon.
The BFS will build on Cyprium’s 2024 prefeasibility study (PFS), which demonstrated the economic viability of a new surface mine to feed a refurbished plant to produce 694,000 t of copper in concentrate across a 20-year project life, and a low capital, high returning opportunity to reprocess existing above-ground heap leach reserves to quickly establish revenues by producing copper cathode.
The HoA includes an exclusive period during which the parties commit to progressing the feasibility studies and executing an alliance-style life-of-mine contract. The parties expect this contract to cover all operations on site including surface mining, concentrator refurbishment, cathode startup and ancillary infrastructure. The exclusive period commences from the execution of the ECI contract.
Upon execution of ECI contract, Macmahon will also take up site operations at Nifty. Macmahon’s on-the-ground presence is expected to accelerate the feasibility and planning process by increasing the knowledge of the as-built environment at Nifty and pulling that into redevelopment plans, Cyprium says.
Nifty already benefits from a 2.8 Mt/y sulphide concentrator (in care and maintenance since November 2019), a 25,000 t/y copper cathode heap leach SX/EW facility (in care and maintenance since January 2009), a 21 MW gas turbine power station, full heavy vehicle workshops and accommodation village, and fully sealed all-weather airstrip.
Macmahon will also examine alternate startup scenarios that can reduce capital and time to revenue generation. A key objective is to shorten project timelines outlined in Cyprium’s PFS, which detailed a 17-month construction schedule that was driven by the expansion of the concentrator capacity and a deferred startup of the cathode plant.
Cyprium Executive Chair, Matt Fifield, said: “The strategic alliance with Macmahon represents a significant step forward in enhancing our operational and execution capacity, building required capability through partnership. Macmahon is a recognised leader in mining services, bringing extensive expertise in engineering, procurement and best-in-class operating and environmental systems. Their operations align with the scale required for the new open-pit development at Nifty. They operate at the scale of mine and equipment that a new open pit at Nifty will require. Macmahon’s expertise brings real-life experience to the feasibility process that further de-risks Nifty and sets parameters of our execution plans.
“It’s clear that Cyprium and Macmahon share a common vision for long-term success – deliver on the 20-year reserve life potential of the Nifty Copper Complex and exploit accretive near-term revenue opportunities.”
Macmahon Managing Director and CEO, Mick Finnegan, said: “Nifty, the Paterson Range, and copper more broadly, are very interesting to us. The project requirements fit many of our core capabilities including engineering services, operational execution and providing end-to-end value for our clients. We look forward to the redevelopment of Nifty and resuming its history as a leading producer of Australian copper and being a value-adding execution partner for Cyprium.”