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Capital costs around Copper Mountain's Eva copper mine in Australia have increased due to disruptions caused by COVID-19.
Total CAPEX for the project has climbed 18.7% to A$836.4 million since Copper Mountain first released the Eva feasibility study in May 2020.
Increases in steel, mechanical, concrete, and construction labour were the most significant drivers in the higher costs, particularly in the processing plant area. Tight COVID-19 restrictions in Queensland have restricted the movement of raw material and finished equipment.
Infrastructure costs increased due to an expanded camp facility, as well as increased power infrastructure and water development.
Total life of mine sustaining capital also increased to US$46.6 million, compared to US$33.8 million in the May 2020 feasibility study.
After-tax Net Present Value at an 8% discount rate has increased by 42%, from A$437 million in May to A$622 million in December, with post-tax internal rate of return increasing from 29% to 35%.
Detailed engineering plans for the mine and processing plant will be completed in the September quarter of 2022, with the commissioning of the mine pushed back to 2024.
Eva is expected to produce over 100 million pounds of copper per year.
