20974 29Metals AR23 WEB V1 - Flipbook - Page 7
2023 key
results
Chair letter and
CEO report
About
29Metals
Our
assets
Sustainability
& ESG Report
Mineral Resources
and Ore Reserves
Annual
Financial Report
Suspension of Operations at Capricorn Copper
On 26 March 2024, following the impact of
successive tropical cyclones affecting northwest
Queensland in the period since late January 2024,
29Metals announced that it had taken the difficult
decision to suspend mining and milling operations at
Capricorn Copper. The decision was guided by key
priorities – the health and safety of our workforce,
managing our environmental responsibilities,
conserving cash and preserving the value of
the asset.
Rainfall associated with successive tropical cyclones in
the period from late January 2024, resulted in a signi昀椀cant
accumula琀椀on of water held in regulated structures on site,
increasing water levels to levels similar to those immediately
following the Extreme Weather Event in March 2023.6
With water at these levels, dewatering of the Esperanza
South underground mine (‘ESS’), could not con琀椀nue which,
in turn, would delay the restart of mining at ESS – cri琀椀cal to
successfully comple琀椀ng the Recovery Plan announced on
23 May 2023.
During the suspension period, 29Metals’ focus will be
managing the water inventory (and related compliance
ac琀椀vi琀椀es) and preparing the asset for a restart.
29Metals is commi琀琀ed to restar琀椀ng opera琀椀ons at Capricorn
Copper as soon as possible. Planning for a successful restart
has commenced. Key drivers for a successful and sustainable
restart at Capricorn Copper will be:
■
■
■
■
reducing water inventory held on site, including
comple琀椀ng the dewatering of ESS and implemen琀椀ng
further measures to enhance the resilience of the site
to future weather events;
establishing long term tailings storage capacity;
comple琀椀ng the design, procurement and installa琀椀on
of the new water treatment plant, providing a reliable
and sustainable source of water suitable for mining
and milling opera琀椀ons; and
iden琀椀fying and implemen琀椀ng opportuni琀椀es to
enhance produc琀椀vity and reduce costs.
The con琀椀nuing support of the Queensland government will
also be cri琀椀cally important, building upon the Prescribed
Project and Cri琀椀cal Infrastructure Project status conferred
late last year7 to secure the regulatory approvals required to
support the restart and the enablers outlined above.
During the suspension, 29Metals will also con琀椀nue to
progress the growth poten琀椀al at Capricorn Copper, including
targeted explora琀椀on ac琀椀vity to test the new mineralised
zone iden琀椀昀椀ed last year east of the Mammoth orebody8,
and evalua琀椀on of the poten琀椀al to produce a cobalt product.
In parallel to the ongoing Capricorn Copper recovery
plan, seeking to return the site to full opera琀椀ons following
the Extreme Weather Event6, 29Metals is evalua琀椀ng
opportuni琀椀es to realise the substan琀椀al opportunity that
Capricorn Copper presents, including poten琀椀al to increase
the future mining rate of the Esperanza sub level cave
the poten琀椀al future recovery of cobalt.
From a balance sheet perspec琀椀ve, the decision will
enable 29Metals to reduce cash ou琀昀lows in the nearer
term (a昀琀er ini琀椀al one‑o昀昀 termina琀椀on and redundancy
costs), and we will con琀椀nue to focus on produc琀椀vity and
sustainable cost reduc琀椀on ini琀椀a琀椀ves, progressing the
Capricorn Copper insurance claim, and o昀�ake 昀椀nance
arrangements to provide addi琀椀onal liquidity.
As we work through the ramp down in mining and milling
opera琀椀ons, and enter into the suspension, we will focus
on suppor琀椀ng our workforce who have worked 琀椀relessly
since the Extreme Weather Event6 last year and who,
along with our business partners and local community,
will be heavily impacted by the suspension.
6. Refer to: “Impact of Extreme Rainfall on Capricorn Copper Opera琀椀ons”
released to the ASX announcements pla琀昀orm on 9 March 2023;
“Capricorn Copper Opera琀椀ons Update” released to the ASX
announcements pla琀昀orm on 15 March 2023; and “Strategic
Update” released to the ASX announcements pla琀昀orm on
23 May 2023.
7. Refer to 29Metals’ ASX release en琀椀tled ‘Capricorn Copper
Conferred Prescribed Project Status’ released to the ASX
announcements pla琀昀orm on 16 November 2023.
8. Refer to 29Metals’ ASX release en琀椀tled
‘Explora琀椀on Update – Capricorn Copper”
released to the ASX announcements
pla琀昀orm on 12 April 2023.
Kobi, Bailey & Tyezae
Capricorn Copper
3
