One of the country's major copper-silver mines has announced it will not be fully operational until the first half of 2024 after unprecedented floods ravaged north-west Queensland in March.
Capricorn Copper's mine, 120 kilometres north of Mount Isa, was inundated with 1.5 billion litres of water – the equivalent volume of 600 Olympic swimming pools – after record rainfall and flooding across the region.
The underground mine formally suspended operations on March 9, along with several other mines in the North West Minerals Province.
Some of those mines, such as the Ernest Henry copper-gold mine near Cloncurry, have recently resumed operations.
Capricorn Copper, which employs about 60 people directly plus a large number of contractors, reported a complete loss of major infrastructure, including its water treatment plant, site workshops and warehouses, mine owner 29 Metals announced in an ASX statement on Thursday.
One of its main tenements, the Esperanza South underground mine, copped the brunt of the damage after it was swamped by 500 million litres of floodwater.
The mine hoped to have two of its tenements, the Mammoth and Greenstone sites operational by September, however, the Esperanza site will not be usable until the first half of 2024, 29 Metals said in the ASX statement.
The main focus of recovery efforts was managing water quality to meet regulatory requirements, dewatering mine sites and rebuilding damaged infrastructure.
29 Metals said it had "substantial liquidity (before any insurance proceeds) to support the recovery".
Impact on productivity and employees
About 110 employees and contractors had been engaged to work on the clean-up while 29 Metals considered transferring other employees to its Golden Grove copper mine in Western Australia.
Force majeure notices were issued to some contractors, whereas other contractors had increased site presence to assist in the recovery process, 29 Metals said.
In a statement the company said it expected financial losses from lack of productivity and cost of recovery efforts would be reported in mid-May.
Along with Capricorn Copper, Ernest Henry and New Century were among several minerals mines that suspended operations after the floods.
Port facilities in the Gulf of Carpentaria also impacted.
Much of the material mined in the North West Minerals Province is exported.
Queensland Resources Council chief executive Ian Macfarlane said the suspension of operations would have a ripple effect on export markets.
"Any loss of production will be felt not just in Queensland, in terms of economic return and royalty taxes, but internationally it has the potential to create shortages in commodities," he said.
"Right around the world, people will be watching how soon these mines can open."
