Tag Archives: Oz Minerals

Swift Access to entertain and engage OZ Minerals Carrapateena FIFO workers

Swift says it has secured an installation agreement and a new three-year subscription agreement with OZ Minerals Limited to service its Carrapateena mine site, in South Australia, with Swift Access.

The total contract value of both agreements is A$1.4 million ($954,680) over the three-year subscription term and includes associated installation revenue, with installation expected to be completed in the first half of the 2023 calendar year.

Swift said this contract represents ongoing subscription revenue for Swift Access: Swift’s premium entertainment and engagement solution powered by proprietary technology developed specifically to enable a reliable service within low bandwidth environments, Swift’s local 24-hour support and other additional channels.

Swift Access will allow OZ Minerals staff to cast their favourite streaming apps from their mobile device straight to their room’s TV, all while maintaining user privacy and offering smart device setup and allows management to improve efficiencies for facility staff.

As part of the agreement, Swift Access will provide OZ Minerals staff with Swift’s full content library including first-release movies and sector-specific mental health and indigenous education resources. Swift Access also allows facility managers to easily upload and distribute site information such as inductions, health and safety messages and more, directly to TVs across the site.

The entire Swift Access experience is managed by Swift’s unique bandwidth management platform and includes support services over the three-year term.

Swift CEO, Brian Mangano, says: “This new contract continues the roll out of Swift Access to the mining industry and is another significant step in our goal to be the product of choice. We are excited to work together with OZ Minerals and look forward to creating new, innovative solutions to address the challenges of the FIFO (fly-in fly-out) lifestyle.”

OZ Minerals breaks through at Carrapateena sub-level cave

OZ Minerals has announced that the Carrapateena cave safely propagated to surface on December 29, 2022, marking the transition from development to production planning at the operation in South Australia.

OZ Minerals Managing Director and Chief Executive Officer, Andrew Cole, said: “The Carrapateena cave safely breaking through to surface marks a significant milestone for the mine and an important de-risking event for ongoing operations. With the cave now through to surface it enables mine planning to be optimised for production rather than prioritising the safe development of the cave, which has been the primary focus over the first two years of the mine’s life.

“I’d like to take this opportunity to congratulate the Carrapateena team for their dedication and focus to deliver a safe working environment and successfully managing the cave propagation to surface.”

Close to a year ago, the Crusher 2 level for the sub-level cave mine at Carrapateena was reached, enabling commencement of the Block Cave Expansion declines and an increase in sub-level cave production rates to from circa 4.7 to 5.0 Mt/y from 2023.

The expansion, which will involve converting the lower part of the current sub-level cave into a series of block caves, is expected to prolong operations at the copper-gold mine, while boosting production to 12 Mt/y. This will see average copper production come in at 110,000-120,000 t/y and gold output average 110,000-120,000 oz/y from 2026, compared with production of 55,262 t and 89,778 oz, respectively, in 2021.

OZ Minerals, Boliden and Rio Tinto to collaborate on tailings initiative

OZ Minerals, Boliden and Rio Tinto have agreed to collaborate to unlock new and innovative technologies for managing tailings, helping the mining industry to further reduce risk while extracting the materials the world needs for the energy transition from what was previously regarded as ‘waste’, they say.

Under the umbrella of the Think & Act Differently (TAD) incubator initiative, the three companies will fund and support innovators who are working to reimagine mining and processing to eliminate, minimise, reuse or find value in mine tailings. The three companies will also collaborate on other selected innovations to pursue improved productivity while delivering benefits such as lower emissions and reduced waste.

The collaboration will support innovators by providing materials, funding, technical guidance and the potential for field trials at mine operations, the companies said. Innovators will retain ownership of their intellectual property rights, with a licence to use those rights granted to the companies that support them.

Michelle Ash, OZ Minerals’ Technology Executive, said: “We can accelerate technology much faster by working together and this is an example of how the industry can collaborate to support technology development. We hope this way of working and supporting innovators provides a model that can be replicated because accelerated technology development is likely to have a positive impact on our industry and society.”

Joanna Lindahl, Boliden Mines’ Sustainability Director, added: “By collaboration on generic challenges for the mining industry in a pre-competitive setting we will be able to make progress faster and more resource efficient. For the inventors and startup companies in the TAD incubator, it is also an excellent opportunity to get insights and business understanding from several different mining companies. We are very much looking forward for this collaboration and hope to find new opportunities to strengthen the industry in the future.”

Mark Davies, Chief Technical Officer for Rio Tinto, said: “It isn’t very often that competitors come together to collaborate on industry-critical work. One such area historically has been health, safety and environment, where we learned that sharing leading practices boosts our collective performance. We think collaborating on tailings management capability improvement could have a similar, industry-wide impact. We’re excited to be partnering with Boliden and OZ Minerals through the TAD program.”

The Think & Act Differently program, powered by OZ Minerals, works towards building an ecosystem of partners who will explore and accelerate themes that prioritise social and environmental responsibility for the development of the modern mine, the company says.

Photo courtesy of Exact Consulting

OZ Minerals Carrapateena debottlenecking accelerates with HIGmill addition

OZ Minerals’ Carrapateena operation in South Australia is gaining momentum with its processing plant running in excess of nameplate through a cost-effective and efficient debottlenecking strategy.

The latest sign of this strategy taking shape comes in the form of the installation of a second HIGmill from Metso Outotec.

This high-intensity grinding mill has been installed in parallel to the existing mill at the copper-gold operation to increase regrind capacity for all ore types to maintain optimal concentrate grades, the company says.

“We selected HIGmills due to the simplicity of installation and the total cost of ownership,” the company told IM. “As both HIGmills are identical, this allows for commonality of spares and predictable operation.”

The initial processing plant at Carrapateena was designed to produce at a nameplate of 4.25 Mt/y, yet, through debottlenecking and continued process improvement, the plant has recently run at annualised run rate in excess of 5 Mt/y, the company said. This is also an increase on the 4.6 Mt/y processed in 2021.

Like other ‘connected’ equipment within the Carrapateena processing plant, the new HIGmill has been fully integrated into a SCADA system monitored by the control room. It can also be monitored remotely at OZ Minerals’ Adelaide remote operations centre, the company added.

Beyond debottlenecking, OZ Minerals is planning a major expansion at Carrapateena through the development of a block cave operation, which was signed off by the OZ Minerals Board in early 2021.

The expansion, which will involve converting the lower part of the current sub-level cave into a series of block caves, is expected to prolong operations at the copper-gold mine, while boosting production to 12 Mt/y. This will see average copper production come in at 110,000-120,000 t/y and gold output average 110,000-120,000 oz/y from 2026, compared with production of 55,262 t and 89,778 oz, respectively, in 2021.

Under the expansion project, the company is targeting block cave 1 to begin operations by 2026 and block cave 2 by 2038.

While the block cave is being established, a second process plant will be built in parallel to the existing one. Below surface, construction of the second crusher is expected to be completed towards the end of next year, and processing plant optimisation is ongoing. These will help produce a concentrate to be transported to port and subsequently to smelters by ships, the company told IM.

BHP eyes South Australian copper basin consolidation with latest OZ Minerals offer

BHP has submitted a revised non-binding indicative proposal to the Board of OZ Minerals Limited (OZL) that, subject to a successful four-week due dilligence period, could see the major miner acquire the mid-tier base metal-focused miner.

The offer to acquire 100% of OZ Minerals by way of a scheme of arrangement for a cash price of A$28.25/share ($18.9/share) is a 13% increase on the offer BHP previously put forwad and was rejected by the OZ Minerals Board. It, according to BHP, represents the best and final price the mining major is willing to offer under, in the absence of a competing proposal.

The OZ Minerals Board has confirmed to BHP that it intends to unanimously recommend the revised proposal to OZ Minerals shareholders as being in their best interests in the absence of a superior proposal, subject to the parties entering into a binding scheme implementation agreement (SIA) following completion of BHP’s confirmatory due diligence and an independent expert concluding that the revised proposal is in the best interests of OZ Minerals shareholders, it said.

The proposed transaction, valuing OZ Minerals at an enterprise value of A$9.6 billion, is expected to deliver significant value creation for both BHP and OZ Minerals shareholders, BHP says, explaining that OZ Minerals shareholders would receive an offer price significantly above trading levels and average broker price targets, prior to BHP’s initial proposal on August 5, 2022. At the same time, BHP shareholders would gain increased exposure to future-facing commodities, adding copper and nickel resources that are essential to support the global megatrends of decarbonisation and electrification.

The deal would also create a South Australian copper basin, which, according to BHP, could unlock potential operational synergies due to the proximity of OZ Minerals’ Carrapateena and Prominent Hill operations with BHP’s existing Olympic Dam asset (pictured) and Oak Dam development resource.

The West Musgrave project, meanwhile, will add a large greenfield nickel option to BHP’s Nickel West premier nickel sulphide resource position in Western Australia.

BHP has now entered into a Confidentiality and Exclusivity Deed with OZ Minerals in relation to the revised proposal. This has seen OZ Minerals grant BHP four weeks to undertake exclusive confirmatory due diligence and negotiate a binding SIA reflecting the key terms of the revised proposal. The four-week period is expected to commence on or around November 21, 2022.

BHP CEO, Mike Henry, said: “BHP’s proposal represents a highly compelling offer for OZ Minerals shareholders, providing certainty at a time of macroeconomic uncertainty and market volatility, and increasing risks for the industry.

“The combination of BHP and OZ Minerals’ assets, skills and technical expertise provides a unique opportunity not available under separate ownership, with complementary resources including the Oak Dam exploration prospect and existing facilities within close proximity, backed by BHP’s strong balance sheet, capital discipline and commitment to sustainable development.”

OZ Minerals Managing Director and Chief Executive Officer, Andrew Cole, said: “BHP’s revised proposal is a clear reflection of OZ Minerals’ unique set of highly strategic, quality assets in quality jurisdictions and an enviable multi-generational growth pipeline of copper and nickel
assets in strong demand due to global electrification. We look forward to working with BHP in a collaborative way to progress the revised proposal in the best interests of OZ Minerals’ and its stakeholders.”

OZ Minerals’ West Musgrave copper-nickel plan receives board approval

The OZ Minerals Board has greenlit the build of the West Musgrave copper-nickel project in Western Australia, paving the way for the development of a remote asset using dry grinding technology, autonomous haulage and a significant volume of renewable power.

West Musgrave is set to become OZ Minerals’ fourth operating asset when it starts producing concentrate in the second half of 2025, in the process becoming the company’s cleanest and greenest mine with plans to reach net zero Scope 1 emissions by 2038.

The feasibility study the board signed off on details a 13.5 Mt/y operation with average production of circa-28,000 t/y of nickel and circa-35,000 t/y of copper over a 24-year operating life. Coming with a A$1.7 billion ($1.1 billion) direct initial capital expenditure bill, West Musgrave could provide cash flow generation of circa-A$1.9 billion during the first five years of production based on OZ Minerals’ projections.

One of the interesting additions to the process flowsheet – which has been mentioned in previous economic studies – is the use of LOESCHE’s Vertical Roller Mill (VRM) technology.

Two VRMs will operate in parallel after the primary and secondary crushing circuit at West Musgrave, with OZ Minerals noting benefits in reducing power consumption by around 20%, supporting higher flotation recovery and the operational flexibility to be ramped up and down. The latter is particularly important given OZ Minerals plans to make West Musgrave one of the largest fully off-grid, hybrid renewable powered mines in the world with an initial circa-80% renewable penetration rate, powered off wind and solar energy with a battery energy storage system in tow.

Dr Thomas Loesche, Managing Shareholder and owner of LOESCHE, said: “As a mining engineer with a degree in mineral processing, it has always been a vision of mine to develop dry-comminution technologies that enable better sorting efficiencies, reduced power and consumables. We are very pleased to be involved in such an important project. OZ Minerals is breaking new ground and proving that sustainability does not stand in the way of project development, but rather makes such projects possible.”

The application of the VRM technology has been peer reviewed for the project by independent experts and has been de-risked through pilot test work campaigns, OZ Minerals added.

Further upstream of the VRMs, OZ Minerals has stated plans to operate the mining fleet remotely from day one at West Musgrave, with the acquisition of an autonomous haulage system-enabled fleet on a leasing basis in the feasibility study outline.

OZ Minerals did not include details of the size of truck involved in the latest study, but the prefeasibility study originally released in 2020 highlighted the use of up to 25 220-t payload haul trucks.

There is also potential for these haul trucks to be electric in the future, with OZ Minerals saying its pathway is aligned with the potential transition to an electric haulage fleet at the first engine change out.

While OZ Minerals says it has the capacity to fully fund West Musgrave with a new A$1.2 billion syndicated facility supported by key relationship banks awaiting final binding agreements, it said potential strategic partnership in the project via a minority interest was being explored.

The next steps for the project involves award of contracts with major partners – it has already signed up GR Engineering to build the process plant; increasing the capacity of its camp to around 250 beds by early 2023; mobilisation of equipment to commence earthworks; finalise the power purchasing agreement and Living Hub – the latter of which has 350 permanent ensuite rooms; and increasing its owner team resources in line with the plan, including operational-readiness personnel.

Byrnecut to use six Sandvik 18-t-payload BEVs at OZ Minerals mines

Leading Australia-based contract miner Byrnecut is embracing the many benefits of battery-electric vehicles (BEVs) by purchasing six Sandvik battery-powered loaders with AutoMine® for use at OZ Minerals’ operations in South Australia.

Under a deal with Sandvik Mining and Rock Solutions, Byrnecut will take delivery of the LHDs in 2023 and 2024 for use at the Prominent Hill copper, gold and silver mine, south-west of Coober Pedy, and the Carrapateena copper and gold mine, north of Port Augusta. Byrnecut has been engaged by OZ Minerals to provide underground mining services at the mines and currently has a fleet of Sandvik LH621i loaders equipped with autonomous solutions operating on both sites.

We’re excited to be leading the way with battery-electric vehicles in Australia by putting these six Sandvik loaders into service over the next two years,” Max Woods, Asset Manager for Byrnecut, said. “Not only will the use of electric vehicles significantly improve the working environment underground, but it will also help our customers to work toward their emissions reduction goals – something that is increasingly important in the mining sector.”

Woods says the purchase of the electric loaders is part of Byrnecut’s commitment to explore and embrace new technologies that make its operations safer, more efficient and more sustainable.

“Eliminating emissions from loaders from the underground environment helps us create a better workplace, as does AutoMine technology that enables operators to work from comfortable remote control rooms,” he said.

Another major benefit to Byrnecut is the anticipated increased performance the new loaders could provide, Sandvik says.

The company worked closely with Sandvik prior to purchase to model various application scenarios, including both manual and automated operation.

“We’re expecting the loaders to provide greater throughput in both manual and automated modes while delivering a similar total cost of ownership per tonne delivered to their predecessors,” Woods says.

The new Sandvik loaders are also expected to bring major cost savings across their entire lifecycles, according to Woods. They are likely to require fewer replacement parts than their predecessors, and servicing is also more efficient and simpler.

Sandvik 18-t battery loaders are the most compact on the market, according to the OEM. The powerful electric motors, innovative electric driveline and the smaller tyres on the rear compared with the front, result in a small machine size, high payload with good visibility and unmatched speeds.

Battery machines produce no underground exhaust emissions and significantly less heat than traditional diesel engines, supporting the mines to reach sustainability targets, through reduced CO2 emissions.

Andrew Dawson, Business Line Manager for Load & Haul at Sandvik, praised Byrnecut for helping to pioneer the use of BEVs in Australia.

“The first Sandvik battery-electric loaders only began arriving in the country about a year ago, and the interest has been extremely strong,” he says. “We’re very pleased that Byrnecut and Oz Minerals see the benefits of this technology and is demonstrating it to the rest of the industry. We have always had an excellent working relationship with Byrnecut and look forward to cooperating with them throughout the roll-out and beyond.”

OZ Minerals backs in-situ copper-gold recovery project

OZ Minerals has committed funds to support in-situ recovery (ISR) research at the Kapunda copper-gold ISR project in South Australia, putting the project owners closer to outlining the potential economic extraction of copper resources via ISR.

Kapunda is being steered by EnviroCopper Ltd, which, itself, has a joint venture in place with tenement holder Terramin to earn up to a 75% interest in the mineral rights over metals which may be recovered via ISR.

As part of the agreement with OZ Minerals, the company has committed to A$2.5 million ($1.75 million) over 18 months to support ISR research at the Kapunda project, according to Thor Mining, which as a 30% interest in EnviroCopper.

This funding will continue studies into the potential economic extraction of copper resources via ISR, with collaboration between the two companies kicking off this quarter.

EnviroCopper plans to develop a Mining Lease application for the Kapunda project, which, from 2018-2021, was subject to extensive research into solving existing knowledge gaps in the ISR industry. Funded by a Cooperative Research Centres (CRC) Program Grant from the Dept of Industry, Innovation and Science to the total value of A$6 million (cash and in-kind), EnviroCopper partnered with industry, CSIRO and University of Adelaide to carry out this work.

The key objective was to research the core values of environmental, social and economic impacts of ISR mining, a proven method of metal recovery that has been used for over 50 years and, with recent technological improvements, is being considered for the recovery of metals like gold and copper from mineral deposits that can not be mined by conventional methods.

Kapunda is a town with a rich mining history, growing from Australia’s first ever commercial copper mine in the 1840s. Even though the mine ceased production in the early 1900s, successive mining companies have looked at recovering the remaining copper over time, but, due to the proximity to town, conventional mining would not be possible. ISR mining is a possible solution to extracting this remaining copper in an environmentally- and community-sensitive manner.

Zero Automotive overcoming barriers with BEV conversion offering

Zero Automotive is one of several Australia-based companies looking to supply the clean and green light utility vehicles the domestic hard-rock sector requires over the next decades to achieve crucial sustainability goals while retaining high productivity levels.

Thanks to the support of a significant copper-gold miner in Australia, its membership of the Electric Mine Consortium (EMC) and METS Ignited backing, the company finds itself in a strong position to deliver these machines against a backdrop of supply chain issues and ever-evolving safety and regulatory requirements.

“We’ve got commitments for six machines altogether and are in the process of offering our production version to the market,” Dan Taylor, Business Development Manager for Zero Automotive, says.

The first and second units are already running at OZ Minerals’ Carrapateena copper-gold mine in South Australia – Zero Automotive’s home state.

The first machine – a ZED70 Ti™ battery-electric light vehicle – was originally delivered to the mine at the back end of 2020 for testing. After successful trials, the company acquired this unit outright and, in early-2022, added a second Zero Automotive ZED70 Ti to enable its workforce to familiarise themselves with the capabilities and charging methodology that come with electric light utility vehicles.

Since then, the company has delivered a third ZED70 Ti conversion to Barminco, which is now on site at its client IGO Ltd’s Nova nickel-copper-cobalt operation in Western Australia. This vehicle is the first single cab conversion developed by Zero Automotive and will be deployed to site foremen to allow the mining contractor to gain a good understanding of its capabilities.

All three of these machines – and the three to follow – are based off battery-electric conversions of the Toyota LandCruiser 79 Series, a vehicle that has been part of the Australian mining landscape for many years.

The modular nature of the Zero Automotive platform enables its long-life battery energy system to be reused in multiple chassis, lowering the total lifecycle cost of the fleet as well as the cost of Scope 1 emissions, according to the company.

They also include dual AC-DC charging with the CCS Combo2 connection, which is becoming increasingly standardised in the mining space.

Data and feedback from the second OZ Minerals machine and the initial Barminco vehicle will be fed back into the EMC ecosystem under the Light and Auxiliary Equipment Working Group as part of the consortium’s continual improvement and knowledge sharing remit.

The EMC said of the consortium’s ongoing light and auxiliary equipment electrification ambitions: “Converting light and auxiliary vehicles as rapidly as possible to electric is key to the industry building the broader understanding and familiarity with electric equipment and infrastructure that will accelerate adoption across all aspects of operations.”

The EMC is a growing group of over 20 mining and service companies driven by the imperative to produce zero-emission products for their customers and meet mounting investor expectations. The objective of the EMC, backed by METS Ignited, is to accelerate progress toward the zero-carbon and zero-particulate mine.

The following three machines are also expected to be deployed to EMC members, with METS Ignited agreeing to provide some A$400,000 ($297,938) of funding towards the diesel-to-battery conversion projects outside of the vehicles already delivered to OZ Minerals.

“The key thing with all of these vehicle deployments is the ZED70 Ti being able to do the job the miners need to perform safely and reliably, getting the associated charging infrastructure right and working with key stakeholders on the change management process,” Dave Mitchell, founder and CEO of Zero Automotive, says. “Operators also need to get used to the power under the hood and how to maximise the battery re-charging capabilities when going down ramp.

“As a matter of course, we train up and educate the sites about the best way to utilise these vehicles,” he said.

To this point, the two prototype vehicles already operating out at Carrapateena have shown that they can work for a typical shift without requiring a re-charge and can then utilise the battery’s AC/DC-DC fast-charge option during shift changeover to enable another user to run the machine for the following shift.

The use of LTO (Lithium Titanate Oxide) battery chemistry and a 60-kWh battery capacity has been behind this performance. This electric motor can generate continuous power of 75 kW and peak power of 134 kW, plus 358 Nm of continuous torque. These values will be increased to 100 kW, 200 kW and 520 Nm (1,200 Nm peak) for the production version.

To this point, the power dimension has often been the main metric quoted with any battery-electric machine, but Taylor pointed out that safety and regulatory considerations were often the biggest barriers to overcome in terms of getting machines operating at underground mines – a hurdle that Zero Automotive has cleared.

“We were able to successfully commission our second ZED70 Ti for OZ Minerals within two days of the machine arriving on site,” he said. “A lot of people are putting out offerings for light utility vehicles, but the required risk analysis in terms of deploying a vehicle underground has not been successfully worked through. This is rightfully a high bar to clear.

“We address any safety or regulatory considerations during our design process – not when the machine is on site – to make sure that operators can start using them quickly.”

Mitchell adds: “The user case is what we are focused on. That has allowed us to scale our offering quickly and ensure our clients can start running the machine underground as soon as they have it on site.”

Zero Automotive is expecting to deploy the other three machines on its books to the same companies (OZ Minerals and Barminco), but the final two machines of the six to be delivered will be under a revised platform to the original ZED70 Ti.

“It will be a platform that is designed from the ground up that incorporates the desired features and learnings from the first conversions, but we will simplify it to reduce complexity, weight and cost,” Mitchell said. “We’re sticking with the same battery configuration – which has proven itself in terms of power, safety and longevity – but we’re adding some auxiliary power outputs and ensuring the machine is multi-purpose.”

The latter element is tied to the company’s medium-to-long-term ambitions, which include the potential to supply battery-electric machines specific to the extended range space too.

For now, Zero Automotive is focused on getting its machines underground at hard-rock operations, ensuring operators and mining companies start realising the productivity and emission benefits that come with these zero-emission conversions.

OZ Minerals turns down BHP’s A$25/share cash offer

OZ Minerals says it has rejected an unsolicited, conditional and non-binding indicative proposal from BHP to acquire all shares in the company for A$25/share ($17.3/share) in cash, valuing the company at an reported A$8.34 billion.

Having assessed this proposal, which represents a 13.1% premium to the volume weighted average price (VWAP) of OZ’s share price for the six months prior, the Board has unanimously determined that the offer significantly undervalues OZ Minerals and, as such, is not in the best interests of shareholders.

For its part, BHP points out in a separate press release that the consideration represents an “attractive premium” of 32.1% to OZ Minerals’ closing price of A$18.92/share on August 5 and 41.4% to OZ Minerals’ 30-day VWAP of A$17.67/share up to and including August 5.

OZ Minerals says the proposal is subject to a number of conditions including:

  • The completion of extensive financial, legal, technical and operational due diligence over a proposed six-week timeframe;
  • Various financial assumptions;
  • A unanimous recommendation of the OZ Minerals Board; and
  • Entry into a scheme implementation agreement subject to a range of conditions including no material adverse change, regulatory, shareholder and court approvals and conduct of business restrictions.

OZ Minerals says the Board has been advised by BHP that it has accumulated an interest in OZ Minerals shares via derivative instruments amounting to an interest of less than 5%.

OZ Minerals Managing Director and Chief Executive Officer, Andrew Cole, said: “We have a unique set of copper and nickel assets, all with strong long-term growth potential in quality locations. We are mining minerals that are in strong demand particularly for the global electrification and decarbonisation thematic and we have a long-life resource and reserve base. We do not consider the proposal from BHP sufficiently recognises these attributes.”

In coming to its decision, OZ Minerals says the Board considered that the proposal does not adequately compensate shareholders for:

  • The unique nature of OZ Minerals’ core business which represents a high-quality portfolio of copper and nickel assets, located in a Tier-1 mining jurisdiction with long mine lives, first quartile cost positioning and extensive strategic optionality;
  • The unique investment proposition which OZ Minerals provides as the only primary copper company in the ASX 100;
  • The low carbon intensity of OZ Minerals’ assets relative to its peers with a defined and market- leading plan for further decarbonisation to meet our target of net zero Scope 1 and 2 operational emissions by 2030;
  • The high-quality nature of OZ Minerals’ growth projects which include the West Musgrave project (final investment decision scheduled for H2 2022), the Carrapateena Block Cave and the Prominent Hill Extension which together are expected to generate significant production growth over the next five years;
  • The strong long-term outlook for both the copper and nickel markets underpinned by increasing geological scarcity, global electrification and accelerating decarbonisation, to which OZ Minerals is highly leveraged; and
  • The strong and consistent returns that the OZ Minerals management team has delivered with a total shareholder return of circa-145% over the past five years.

In addition to the above, OZ Minerals would deliver significant synergies and other benefits to BHP which the Board considers are not reflected in the value of BHP’s indicative proposal.

Among there are the operational synergies in both South Australia (between Olympic Dam, Carrapateena and Prominent Hill) and in Western Australia (between Nickel West and West Musgrave).

BHP says the cash offer it has made would deliver immediate value to OZ Minerals shareholders and de-risk any value which may (or may not) eventually be reflected in the company’s share price.

BHP CEO, Mike Henry, said: “Our proposal represents compelling value and certainty for OZ Minerals shareholders in the face of a deteriorating external environment and increased OZ Minerals operational- and growth-related funding challenges.

“We are disappointed that the Board of OZ Minerals has indicated that it is not willing to entertain our compelling offer or provide us with access to due diligence in relation to our proposal.”