Oz Minerals targets A$150m cost cuts
Mining News Pro - Copper/gold miner Oz Minerals on Monday maintained its production guidance for the full 2020, but announced a A$150-million deferral in overall capital expenditure for the year.

AThe company told shareholders that in light of the Covid-19 pandemic, the company had undertaken an extensive review of all growth, exploration and other expenditure with the objective of maintaining low cost metal production at its operating assets.

As a result, certain growth-related activities have been postponed, including low risk and non-time critical capital spend at the Prominent Hill operation, and capital expenditure at Carrapateena not related to the ramp-up of the project.

“To date, we have not experienced any significant disruptions at our sites, however, plans are in place to respond should conditions deteriorate. While the circumstances remain fluid, an extensive range of preventative and contingency measures have been actioned across the company to ensure our employees remain safe and our sites continue to operate,” said CEO Andrew Cole.

“Our cultural investment over the past five years is paying off and our teams have remained calm and continue to perform well. The introduction of flexible work arrangements for much of our non-frontline workforce over the past 18 months has also allowed a relatively seamless transition to the current remote working environment.

“With over 85% of Australian sites’ workforces based in South Australia, the recently announced South Australian border closures will have limited impact on the continued operations of Carrapateena and Prominent Hill, with all non-frontline functions already working remotely.”

Coleman said that Oz Minerals had planned for a range of scenarios, including operating with a South Australian workforce only, extending rosters to enable isolation of sites through to care and maintenance.

“As we develop our action plans our overarching objectives are the health and safety of our people, job protection and liquidity. Our Brazil workforce is locally based and not currently experiencing border or other movement restrictions.”

Meanwhile, operations at the Prominent Hill project continue as normal, and no changes are currently expected to the production guidance. Plant ramp-up at Carrapateena is progressing ahead of plan, with current stockpiles standing at around 305 000 t. First bulk shipment from Carrapateena is expected in the second quarter of this year, and the project is expected to reach run rates of 4.25-million tonnes a year by year-end.

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