Copper-focused OZ Minerals Ltd. revealed a two-phase plan to secure power for its South Australian assets, saying that current infrastructure in the region did not support the company's current activities and future regional expansion plans.
The company will construct a new 270-kilometer high voltage power line to replace infrastructure after a BHP Billiton Group subsidiary announced that it will terminate a power connection and access agreement for the company's Prominent Hill copper mine, effective Aug. 30, 2020.
Preliminary work is underway and the line is expected to be operational by mid-2020, according to the March 9 release. As part of the second phase, OZ Minerals will enter power purchase agreements in the second half.
The company is also undertaking energy-saving initiatives at the Prominent Hill and Carrapateena copper projects, and is considering renewable energy initiatives including solar plants with battery storage.
OZ Minerals has received conditional approval for an up to A$2.5 million grant from the South Australian government to install a solar plant and storage capabilities at Prominent Hill.
