29Metals has netted $115 million all up in its insurance claim for loss and damage suffered as a result of extreme weather at the Capricorn Copper operation in March 2023.

The company today announced it had reached an in-principle agreement on a full and final settlement of the claim following extensive engagement with insurers.

This will result in a final payment to 29Metals of $54 million, in addition to $61 million in unallocated progress payments paid to date.

“The proceeds from the full and final settlement of the claim enhance group liquidity and flexibility as we progress our immediate-term strategic objectives,” chief executive officer James Palmer said.

“Specifically, the Gossan Valley project at Golden Grove, continuing to progress the imperatives for a future successful and sustainable restart of operations at Capricorn Copper and ongoing exploration programs.”

Image at top of page: Mechanical evaporators at work at the Capricorn Copper site

Capricorn Copper operations were most recently suspended in March last year after an extended period of rainfall resulting in a steady accumulation of water within regulated water storage structures.

The site, 120km north of Mount Isa, had still been clawing back from the impact of a deluge in 2023 – when about 500mm of rain fell at Capricorn Copper over seven days in early March.

29Metals in January stressed the importance of flow levels in Gunpowder Creek during this wet season in making inroads in shifting the on-site water that has halted operations for months.

An Environmental Enforcement Order for the 2024/25 wet season removed limits (that exist under the current Environmental Authority) on the maximum volume of treated water releases.

But controlled treated water releases from the mine site are subject to flow rates in Gunpowder Creek, and the company has stated that meaningful water level reduction is likely to take more than one wet season.

Its progress should be revealed when the company releases its report for the March 2025 quarter, which is due to come out tomorrow (April 29).