The Queensland Government has green lighted the development of a new copper mine in Northwest Queensland as it grants a mining lease to AIC Mines Limited.
This mining lease will allow for surface works to commence at the Jericho Copper Mine and enable operations to expand at the nearby Eloise Processing Plant that will ultimately extend the life of Eloise Copper Mine for another decade.
Surface works at the Jericho Mine will cover a 10-hectare area, with mine development activities to be carried out with a maximum of 20 people employed on site.
“The North West Minerals Province continues to deliver more good jobs for Queenslanders and the critical minerals to power our state’s renewable energy transformation.
“The ripple effects of this new project will resonate far beyond the mine, boosting local and international copper supply for solar, wind and battery energy manufacturing, including Mount Isa’s copper smelter.
“It also means flow-on effects to places like Townsville which is part of the critical minerals supply chain.
“Prioritising and fast-tracking mineral extraction is a key action identified under the Queensland Critical Minerals Strategy, and that’s exactly what we’re doing,” Resources and Critical Minerals Minister Scott Stewart said.
Copper is an essential element to the global energy revolution and in helping Queensland achieve its net zero emission target due to it being a cost-effective conducive material.
The development of the Jericho Mine along with the expansion of the Eloise Processing Plant are anticipated to increase production rate at the mine to more than 20,000 tonnes of copper and 10,000 ounces of gold annually.
Not only will this development increase production of copper and gold, but it will also provide a boost for the region and stimulate the local economy through procurement activities and additional trade with local suppliers.
AIC Mines Limited estimates the Jericho Mine development to support hundreds of jobs through construction and production phases.
“Granting of the Jericho Mining Lease is an important milestone on the Jericho development journey. It allows us to advance surface works in preparation for mining, commit to long-lead time items, and confidently advance negotiations with lenders. The project will employ approximately 150 people over a 24-month construction period and then 100 new permanent employees when in production.
“Development of a new underground mine at Jericho is a game change for our Eloise Copper Mine. It provides a pathway to expanding annual production at Eloise to over 20,000 tonnes of copper and 10,000 ounces of gold in concentrate. Mining at Jericho will be lower cost than Eloise as it it much shallower, commencing below only 50 metres of cover. Expansion of the Eloise Processing Plant will further reduce operating costs through economies of scale and equipment improvements.
“The world needs more copper as we build the infrastructure to transition away from fossil fuels. AIC Mines is focused on delivering into that demand. Queensland is a great place to be operating – it has the copper, the mining infrastructure and the skilled labour force to help fill what is expected to be an insatiable global appetite for copper,” AIC Mines Limited Managing Director Aaron Colleran said.
Just days after the announcement of the mining lease grant, AIC Mines Limited announced that its Board of Directors has approved the development of the Jericho Copper Mine via an underground link drive directly from the Eloise decline.
A mining optimisation studies done on the Jericho Mine has shown that an underground link drive will help reduce initial schedule risk and longer-term operational risks without material change to the capital or operating costs in comparison to a box cut, portal and overland haulage scenario.
“The Eloise to Jericho link drive will have many long-term benefits – access will be considerably easier to maintain during wet season and also allows rapid drilling and development of any new discoveries along the 3 kilometres of prospective strike. Importantly it can be commenced now with equipment and capacity that we already have at Eloise,” Mr Colleran said.
The Jericho deposit is located about 4 kilometres south of the Eloise Processing Plant and it has similar geology, mineralisation and metallurgy to the Eloise deposit.
The next significant approvals that are relevant to the development of the Jericho Mine are the Site Specific Environmental Authority (SSEA) and an amendment to the Eloise Environmental Authority. AIC Mines Limited is currently in discussion with the Queensland Government Department of Environment, Science and Innovation to understand the requirements to achieve these approvals.
Meanwhile, AIC Mine Limited has recently completed a tender process for the Jericho and Eloise developments and has awarded preferred tender status to PYBAR Mining Services. The contract is due to be awarded in June 2024.
Source: Queensland Government – Media Statements; AIC Mines Limited; Australian Mining