Anglo Pacific Group has welcomed the decision by Oz Minerals to go ahead with the development of the West Musgrave copper-nickel project in Australia.
UK-listed Anglo Pacific has a 2% net smelter royalty interest over the project where the first production is scheduled for the second half of 2025.
Average annual production in the first five years is forecast at 35,000 tonnes of nickel and 41,000 tonnes of copper with 28,000tpa nickel and 35,000tpa copper estimated over the 24-year life of the mine.
Costs are a bottom quartile US$0.50/lb (Ni payable net of by-product credit) and US$(1.10)/lb (Cu payable net of by-product credit), Anglo Pacific added, noting it will also be one of the largest fully off-grid, hybrid renewable powered mines in the world.
Marc Bishop Lafleche, Anglo Pacific’s chief executive, added: "West Musgrave is everything we look for in a royalty acquisition, a high-quality project and operator in a recognised mining jurisdiction with strong sustainability credentials.
“We are delighted to see OZ Minerals continue to progress the project in line with the expected timetable."