{"id":1152296,"date":"2019-11-28T05:53:27","date_gmt":"2019-11-28T11:53:27","guid":{"rendered":"https:\/\/www.mining.com\/?p=1007900"},"modified":"2019-11-28T05:53:27","modified_gmt":"2019-11-28T11:53:27","slug":"oz-minerals-to-kick-off-construction-at-35-million-mine-in-brazil-after-vale-deals","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1152296","title":{"rendered":"Oz Minerals to kick off construction at $35 million mine in Brazil after Vale deals"},"content":{"rendered":"<p>Australian copper-gold&nbsp;miner OZ Minerals (ASX:OZL) has <a href=\"https:\/\/www.ozminerals.com\/uploads\/media\/191128_OZ_Minerals_ASX_Release_-_Carajas_Hub_strategy_gains_pace.pdf\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">pulled the trigger on its $35 million underground copper-gold mine in Brazil<\/a>\u2019s minerals-rich Caraj\u00e1s region, following a series of inter-linked strategic agreements with Vale (NYSE: VALE), the country\u2019s largest miner.<\/p>\n<div class='d-flex justify-content-center'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>Since <a href=\"https:\/\/www.mining.com\/oz-minerals-complete-brazil-focused-avanco-takeover\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">taking over Avanco Resources last year<\/a>, Oz has been working towards transforming the small open-cut Pedra Branca mine into a larger underground operation.<\/p>\n<p>The goal, it has repeatedly said, is to develop a hub-and-spoke mining complex around the Antas mine\u2019s concentrate processing facility.<\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p>Decline construction is expected to start in December and first development ore from Pedra Branca has been targeted for mid-2020.<\/p>\n<\/blockquote>\n<\/figure>\n<p>The Adelaide-based company<br \/>\nenvisions a one-million-tonne-a-year underground operation with a mine life of<br \/>\neight years, expected to have an annual production of about 18,000 tonnes of copper<br \/>\nand 11,000 ounces of gold.<\/p>\n<p>Decline construction will start in<br \/>\nDecember and first development ore from expected in mid-2020, the company said.<\/p>\n<p>Pre-concentrate ore from the Pedra<br \/>\nBranca mine will be trucked 75 km to the existing Antas plant, marking the<br \/>\nfirst spoke in Oz Minerals\u2019 Caraj\u00e1s Antas hub.<\/p>\n<p>The decision to go ahead with the mine<br \/>\nconstruction comes as the Australian company inked a number of agreements with<br \/>\nVale, securing new momentum to its low-key, relatively low-cost entry into the<br \/>\ncopper and gold mining sector in the South American country.<\/p>\n<p>The deals will allow Oz Minerals to<br \/>\naccelerate progress and simplify activities thanks to the Brazilian mining<br \/>\ngiant\u2019s extensive support network.<\/p>\n<p>The multilayered plan will see Vale<br \/>\ninitially transporting Pedra Branca\u2019s output to Antas, then marketing the<br \/>\nconcentrate produced from that ore.<\/p>\n<p>\u201cThe Vale Caraj\u00e1s concentrate sales<br \/>\nagreement utilizes Vale\u2019s extensive in-country transport infrastructure, which<br \/>\nprovides logistics and marketing cost savings, and simplifies our activities in<br \/>\nthe region,\u201d Oz Minerals\u2019 Brazilian boss,&nbsp;Carlos Gonz\u00e1lez, said in the<br \/>\nstatement.<\/p>\n<p>The deal also contemplates the<br \/>\noption to process the mine\u2019s production at a Vale facility that is much closer<br \/>\nto the mine than Antas. That alternative would be triggered if the plant fills<br \/>\nup with production from other mines closer to it than Pedra Branca.<\/p>\n<p>The immediate advantage is a<br \/>\ncapital and risk profile reduction of OZ Minerals\u2019 first international endeavour,<br \/>\nwhile offering new medium-term opportunity and long-term upside.<\/p>\n<p>Another plus is that Oz will have<br \/>\nthe option of acquiring Vale\u2019s share in two copper exploration projects in the<br \/>\nregion, one of which is at a relatively mature stage.<\/p>\n<p>The Aussie miner also announced it would exercise its option to purchase the Pantera advanced exploration project, which it acquired <a href=\"https:\/\/www.mining.com\/oz-minerals-closer-ever-grabbing-brazil-focused-avanco\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">as part of the takeover of Avanco<\/a> last year.<\/p>\n<p>At around 1,800km2, Caraj\u00e1s is the<br \/>\nsecond largest land holding in a region known for iron oxide copper-gold deposits<br \/>\nof which Vale\u2019s 200ktpa Salobo is the prime example.&nbsp;<\/p>\n<p>It has similar geology to South Australia, where copper mines such as Oz\u2019s Prominent Hill, and the soon to start producing Carrapateena, as well as BHP\u2019s <a href=\"https:\/\/www.mining.com\/bhp-unveils-world-class-copper-find-near-olympic-dam-south-australia\/\"  rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">Olympic Dam<\/a> are located.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Pedra Branca underground mine is expected to have an annual production of about 18,000 tonnes of copper and 11,000 ounces of gold over an eight-year mine life.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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