OZ Minerals (ASX:OZL) says construction has started at the Pedra Branca mine and a suite of agreements with Vale, Brazil’s largest miner and Carajás tenement holder.
The OZ Minerals Board granted final investment approval for the Pedra Branca underground mine.
First development ore is targeted for mid-2020.
With a mine life of eight years, Pedra Branca has a standalone net present value (NPV) of circa US$55 million for a pre-production capital investment of approximately US$35 million.
When combined with the sale of concentrate to Vale, the NPV increases to circa US$75 million.
Shares in OZ Minerals (ASX:OZL) trading 1.2 per cent higher at $10.66.