Season of cyclones takes out Capricorn Copper

29Metals has suspended operations at Capricorn Copper after another punishing wet season at the North-West Queensland site, which was still clawing its way back after an extreme weather event in March last year. This will involve 'a significant reduction in headcount and activity at site' as mining and milling activity winds down, according to an announcement this morning. 29Metals plans to focus on managing the water inventory and related compliance activities at the copper operation during the suspension, and preparing the asset for a future restart. The company said the decision followed an extended period of rainfall between late January and mid-March 2024 in the aftermath of consecutive tropical cyclones. This has resulted in a steady accumulation of water similar to the levels following the March 2023 extreme weather event. With water at these levels, dewatering of Esperanza South underground mine cannot continue which, in turn, delays the restart of mining at ESS as part of the Capricorn Copper Recovery Plan required by return to full operations. The latest blow comes after 29Metals last month reported a net loss after tax of $440 million for 2023, dragged down by the impact of the extreme weather event at Capricorn Copper. Related: 29Metals figures mauled by Capricorn Copper pain “The decision to suspend operations has not been taken lightly, particularly because of the impact it will have on our team at Capricorn Copper who have worked tirelessly following the extreme weather event in March 2023, as well as the local community, our contractors, and the businesses across the region and the state of Queensland that support the site," managing director and chief executive officer Peter Albert said. "Unfortunately, the combination of elevated water levels at the beginning of the wet season (as a result of the event a year ago) and the sustained rainfall since late January this year has more than offset our successes reducing water levels through mechanical evaporation and authorised releases of treated water within prescribed limits. "The duration of the suspension will be dependent on a number of factors, including reducing the water levels held on site and securing the regulatory approvals required to set Capricorn Copper on a sustainable footing. "29Metals’ objective will be to ensure the period of suspension is as short as possible. "Planning for the restart will start almost immediately and we will use this pause in operations to build back stronger and set Capricorn Copper up for the future. "During the suspension, 29Metals will continue to progress the growth potential at Capricorn Copper, including the targeted exploration activity currently underway to test the new mineralised zone identified last year east of the Mammoth orebody, and evaluation of the potential to produce a cobalt product. “ 29Metals said it was committed to restarting operations as soon as practicable to realise the potential of Capricorn Copper, with its substantial mineral endowment of nearly 65Mt in mineral resources and 19Mt of ore reserves at 1.7 per cent copper - supporting an estimated mine life of at least 10 years. The support of the Queensland Government would be critically important, building upon the Prescribed Project and Critical Infrastructure Project status conferred late last year to help the site restore operation, it noted.

Season of cyclones takes out Capricorn Copper

Industry Queensland

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