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$1.7B ‘net zero’ mining project approved

West Musgrave project
West Musgrave project

A modern mineral producer will proceed with a major low-emissions development.

OZ Minerals recently reached a final investment decision on its West Musgrave Project, 110km east of Warburton.

The board approved investing $1.7 billion into constructing a mine capable of processing 13.5 million tonnes per annum of nickel and copper for about 24 years. A tailings storage facility, 30km of road upgrades between the mine site and Jameson, and 650-room village and aerodrome will also be required.

The entire operation will be powered with renewable solar, wind and battery technology. Diesel thermal generation will be reserved for backup use only. A 50 megawatt power purchase agreement will also be signed after a vendor has been selected.

“In addition to the [near] 80 per cent renewable energy sourced from wind and solar for power generation, the project scope includes a pathway to net-zero scope one emissions by 2038,” OZ Minerals CEO Andrew Cole said in a public statement.

The mine will also start implementing autonomous haulage systems and remote operations from “day one”.

“The pathway is aligned with the potential transition to an electric haulage fleet at the first engine change out, together with exploring other initiatives to reduce diesel and the application of offsets,” Cole said.

The final product will be transported in containers to Leonora by road then by rail to Esperance for bulk shipping to customers based in Asia and Europe. There is also potential to source new buyers in the battery manufacturing industry.

Site mobilisation is set to commence in October 2022. An estimated 1500 construction jobs and 400 operational positions will be created in the process. Positions will be advertised here.

Contracting partners have also been identified for 80 per cent of material contracts. GR Engineering Services won the processing plant tender and engaged German-headquartered LOESCHE to supply vertical roller mills that support “high energy efficiency and low operating costs”.

The proponent is also studying potential benefits of downstream nickel processing via mixed hydroxide precipitate. The method is promised to process concentrate, increase product grade, reduce volume for transport and add “further value”.

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