OZ Minerals has been granted the option to acquire Havilah Resources’ Kalkaroo copper project in South Australia.
Havilah’s shareholders gave OZ the nod, enabling the copper miner to commence a scoping study into Kalkaroo’s potential, which it said would take 18 months to complete.
OZ Minerals managing director and chief executive officer Andrew Cole said the study would assess a range of modern mining opportunities, processing improvements and local infrastructure that would reduce project costs and improve productivity.
“The aim of the study is to improve our understanding and confidence in the project, and it will include an infill drilling program to confirm the current mineral resource estimate, prior to making a decision whether to exercise the option to acquire 100 per cent of the Kalkaroo project,” Cole said.
“If the option is exercised, timing for development of the project would remain at OZ Minerals’ discretion. This enables progressive capitalising of internal project development skills which follows on from the success achieved to date with Carrapateena and opportunities with West Musgrave.”
OZ Minerals would have the opportunity to purchase Kalkaroo for a fixed acquisition price, which Cole said ensures OZ can capture additional value identified through the study, while providing Havilah shareholders with price certainty.
If OZ Minerals was to purchase Kalkaroo, it would add one of Australia’s largest undeveloped copper-gold deposits to a portfolio already boasting the emerging West Musgrave project in WA and established Prominent Hill and Carrapateena operations in SA.
It’s a suite of assets that’s drawing plenty of interest from the broader resources industry, including BHP, which launched a takeover bid for the copper miner in early August.
OZ swiftly rejected that offer, and its share price has since jumped above BHP’s $25-per-share proposal.
In an effort to shake off any takeover incursions, OZ Minerals recently announced a plan to more than double its copper production from 140,000 tonnes to 340,000 tonnes.