Mining in the Pilbara region of Western Australia is concentrated around iron ore, but the state government has just given approval for a mine of a different sort.
Venturex Resources Ltd plans to develop its Pilbara copper-zinc project at Sulphur Springs, 50km west of Marble Bar.
The company’s managing director Michael Mulroney says the plan is to build a new mine and processing complex at the site to produce copper and zinc concentrates.
“This is the final stage of the headline approvals… as this is the first time the project has been permitted it’s had a fairly long gestation,” he said.
“We’re working through the development strategy now, in terms of funding and other steps we need to put in place to commence construction.
“We expect we’ll be working towards that by sometime later this year.
“Once we commit to construction the total time frame [before production] is about 20 months.”
Mr Mulroney says the company expects to be a mid-range producer, with 16 500 tonnes of payable copper, 34 000 tonnes payable zinc and 250 000 ounces of silver per annum.
Ultimately the company plans to truck the concentrates to Port Hedland, from there they’ll be shipped to Asia.
“The bulk of the concentrates for copper will be sold internationally, most probably into north Asia or India.
“The zinc concentrate at this point is contracted on a first right of refusal basis to Toho Zinc in Japan.”
Venturex also has interests at Whim Creek, between the towns of Roebourne and Port Hedland.
However, Mr Mulroney says development of that site is still several years away.
“Later in the life of the project we’ll be returning to Whim Creek to mine some of the resources under the exisiting open pits.
“It’ll probably be five or six years into the life of the project before we get to that point.”
The price of copper has felt the effects of a volatile market this week, but Mr Mulroney says his company isn’t too worried about the long term prospects.
“We’re quite comfortable about the long term outlook for copper, in terms of its demand and off-take and more importantly we’re quite positive, particularly in the next five years, about the outlook for zinc.
Source: http://www.abc.net.au/news/2014-03-14/copper-mine-wa/5319502