Austral Resources Upgrades Equipment at Mt Kelly Plant to Support Long-Term Copper Production

Austral Resources Australia (ASX: AR1) has confirmed the arrival of a new agglomeration drum at its Mt Kelly copper processing facility in north-west Queensland.

A critical component of the heap leach process, Austral expects the drum to improve copper recovery and operating efficiency while strengthening Mt Kelly’s long-term processing capability.

The existing drum being replaced at Mt Kelly has processed more than 22 million tonnes of ore, and contributed to the production of more than 155,000t of London Metals Exchange Grade A copper cathode.

Investment in the upgrade was approved by the renewed Austral board last year, reflecting its commitment to building the long-life infrastructure required to support a long-term copper production strategy and future growth.

The decision was made as part of a disciplined strategy to renew plant equipment ahead of operational needs and before the end of an item’s service life.

Queensland Copper Strategy

Austral is building a platform for the next generation of copper production in north-west Queensland to support organic growth, regional consolidation and sustainable value creation for shareholders.

The company is also positioning itself as the natural consolidator of copper assets throughout the region.

Mt Kelly forms the cornerstone of the Western Operations, producing LME Grade A copper cathode through the region’s only SX-EW (solvent extraction and electrowinning) processing facility.

Austral assesses all major capital investments at Mt Kelly and Rocklands with the objective of building a sustainable copper business capable of operating through commodity cycles while delivering long-term shareholder value.

Long-Term Production Support

Chief operating officer Shane O'Connell said the drum upgrade would ensure Mt Kelly remains capable of supporting copper oxide production over the long-term.

“Our operational reset has never been about achieving short-term production milestones, but about rebuilding Austral with the infrastructure required to support decades of reliable copper production,” he said.

“The board’s decision to approve this investment early demonstrates confidence in the future of Mt Kelly and our Western Operations.”

He said Mt Kelly’s long-term copper oxide production would complement a growing sulphide processing capability at the refurbished Rocklands project, which makes up the company’s Eastern Operations.