From clark888 on OZL hot copper forum:In my opinion, BHP should...

From clark888 on OZL hot copper forum:



In my opinion, BHP should continue with the Kalkaroo Call Option for the following business reasons:

1. Kalkaroo copper concentrate has very low uranium impurity. That copper concentrate could be blended at Olympic Dam to bring down its relatively high uranium contaminant.

In addition, Kalkaroo has got 'native copper' (almost pure copper) in the first ~100 metres of the Kalkaroo deposit.

2. Kalkaroo pyrite can generate sulphuric acid via a roaster. Olympic Dam uses a lot of sulphuric acid. Some of it is imported as elemental sulphur from Asia.

3. Kalkaroo also has a cobalt mineral resource and potentially molybdenum and REE (all 'forward-facing' commodities).

4. The Curnamona Province Strategic Alliance would give BHP access to 12,000 sq km of mineral tenements for exploration, including the Jupiter MT anomaly (see Post # 64404976).


5. BHP could construct one of the largest green industrial complexes in Australia, a massive two-part smelter driven by electricity generated by solar and wind. If it advances, Havilah's Kalkaroo copper could also feed into this much larger smelter in South Australia.

"While there are obvious economies in mining BHP's Olympic and Oak Dam at the same time as the Prominent Hill ore bodies, the characteristics of the different ores allowing a much larger smelter to be erected was an important motivation for BHP in the takeover. Once it is consummated, feasibility planning for the smelter will begin. But of course, BHP will not confirm that investment until that feasibility is completed." ['BHP’s OZ takeover hints at a new minerals revolution' article, by Robert Gottliebsen, The Australian on 22 November 2022]


Note: 3 major new smelters outside China are planned for the second half of 2024: Adani Enterprises Ltd. in India; Freeport McMoRan in Indonesia; and Ivanhoe Mines Ltd at its Kamoa-Kakula mine in Democratic Republic of Congo.

Cheers

These are only my thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.

Consult your advisor or professional expert before before making any financial or investment decisions.