NSW copper-zinc mine nears first production

Develop Global is making significant progress on the redevelopment of its Woodlawn copper-zinc mine in New South Wales, which is on track for first production in the June quarter of next year.

The refurbishment of the Woodlawn processing plant is now 50 per cent complete, with the work of GR Engineering Services (GRES) and Develop’s in-house team meaning the mine is rapidly advancing towards first cashflow.

Underground ore production is scheduled to commence in the March quarter, with mining teams mobilising to the site this month.

In a show of confidence, Develop’s board has made a final investment decision (FID) to support the project’s restart plan, which aims to revitalise the long-dormant mine into a key producer of copper and zinc.

“Our production re-start plan for Woodlawn is on-time and on-budget,” Develop managing director Bill Beament said.

“With funding documentation now finalised, the mine recommissioning and the transition to cashflow-positive status is fully funded.

“Our re-start study shows Woodlawn will generate pre-tax cashflow of $1.1 billion based on a 10-year mine plan.”

Beament said at recent spot prices for copper and zinc, the first three years of post-ramp up production yields $375 million of free cashflow, providing substantial cash generation while repaying all the debt.

The redevelopment of Woodlawn is underpinned by a $100 million loan facility with Trafigura, which has now been finalised.

A five-year offtake agreement with Trafigura for the mine’s production has also been executed.

The Woodlawn project marks a critical step in Develop’s growth strategy, with its redevelopment expected to deliver significant economic and operational returns.

With construction advancing and funding secured, Develop is on course to bring the Woodlawn mine back into operation.

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