As the DeGrussa copper project reaches the end of its life, Sandfire Resources has begun shopping the operation – if only it had more legs.
The copper outlook is undeniable. According to a recent report from S&P Global, copper’s role in building electric vehicles (EVs), transmission lines, and solar and wind farms will double demand for the metal in the coming decades.
“Copper – the ‘metal of electrification’ – is essential to all energy transition plans,” the report stated. “But the potential supply–demand gap is expected to be very large as the transition proceeds.
“Substitution and recycling will not be enough to meet the demands of EVs, power infrastructure, and renewable generation.
“Copper demand is projected to grow from 25 million metric tons (MMt) today to about 50MMt by 2035, a record high level that will be sustained and continue to grow to 53MMt by 2050.”
Producing 67,740 tonnes of copper in the 2021–22 financial year (guidance: 65,000–68,000 tonnes), DeGrussa would have been a key asset in the renewable energy transition.
The Western Australian operation was a success story when it began, and it was a success story throughout its life.
Propelling Sandfire from junior explorer to mid-tier copper producer in less than three-and-a-half years, DeGrussa set the benchmark for consistency, achieving 10 straight years of production guidance.
DeGrussa mining activities were completed in October 2022, and processing will continue until at least January 2023, where the treatment of mineralised waste and oxide stockpiles is taking place.
The processing plant is expected to treat approximately 310,000 tonnes of ore at an average grade of 1 per cent copper until January 2023. Approximately 2000 tonnes of copper and 2000 ounces of gold is expected to be produced from the process.
There could be scope for processing beyond January 2023, depending on plant scale trials of further oxide stockpile processing which are set to be completed in the December quarter.
Sandfire is looking to sell DeGrussa inclusive of the Old Highway gold project and associated Bryah Basin gold exploration tenements, the DeGrussa and Monty underground mines and near-mine tenements.
Given the Doolgunna region within which DeGrussa is located is known for being a highly prospective area for precious and base metals, it is possible another company can capitalise on DeGrussa’s strong foundations to deliver more copper produce from the region.
For the meantime, however, once final processing has been completed, DeGrussa will be progressively rehabilitated until it is off Sandfire’s books.