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Highlights:
- OZ Minerals announced on Friday that it has received a ‘green light’ for investing in the West Musgrave Project in Western Australia.
- The company will be making a direct capital investment of approximately AU$1.7 billion for the development of this project.
- This project is expected to generate an undiscounted cash flow of AU$9.8 billion throughout its life of 24 years.
Australian copper miner and explorer OZ Minerals Limited (ASX:OZL) announced on Friday (23 September 2022) that its final investment has got approved by the board to develop the West Musgrave copper-nickel project, the fourth operating asset of the company in Western Australia.
OZ Minerals has secured the approval for a direct capital investment of around AU$1.7 billion towards the West Musgrave project.
Meanwhile, shares of OZ Minerals have ended Friday’s trading session on a positive note after marking a gain of 1.304% to AU$24.4 per share on ASX.
Andrew Cole, Chief Executive Officer, OZ Minerals Limited, said:
Andrew also added that the company has received immense support from the people of Ngaanyatjarra and the Australian government for securing all the necessary regulatory approvals. Apart from that, OZ has also received credit-approved commitment letters from several relationship banks of the company for another AU$1.2 billion syndicated facility which will help OZ with the development of the West Musgrave Project.
Furthermore, the update revealed that the board of OZ Minerals is planning to sell down a minority interest in the project to a strategic partner, building on the inbound interest the company has received in the past six months. OZ Minerals has mentioned in the update that it will use 80% of renewable energy generated from wind and solar power during the project. As a result, the project scope leads to the pathway towards achieving net zero scope 1 emissions by 2038.
