Develop Global Advances Redevelopment of Woodlawn Copper-Zinc Mine
Develop Global is making substantial progress on the redevelopment of its Woodlawn copper-zinc mine in New South Wales, with first production anticipated in the June quarter of next year. The refurbishment of the processing plant, now 50% complete, is being undertaken by GR Engineering Services (GRES) and Develop’s in-house team, positioning the mine for rapid advancement toward cashflow generation.
Underground ore production is scheduled to commence in the March quarter, with mining teams mobilizing to the site this month. Develop’s board has also made a final investment decision (FID) to back the project’s restart plan, aiming to revitalize the long-dormant site into a key producer of copper and zinc. “Our production re-start plan for Woodlawn is on-time and on-budget,” said Develop Managing Director Bill Beament. “With funding documentation now finalized, the mine recommissioning and the transition to cashflow-positive status is fully funded.”
The re-start study estimates pre-tax cashflow of $1.1 billion based on a 10-year mine plan. At recent spot prices for copper and zinc, the first three years of post-ramp-up production are expected to generate $375 million in free cashflow, enabling the company to repay all its debt while delivering substantial returns.
The redevelopment is supported by a $100 million loan facility with Trafigura, which has now been finalized. Additionally, a five-year offtake agreement for the mine’s production has been executed with Trafigura, further securing the project’s financial foundation.
The Woodlawn project is a pivotal element in Develop’s growth strategy. With construction progressing and funding secured, the mine’s reopening is set to deliver significant economic and operational benefits. This milestone underscores Develop’s commitment to enhancing its portfolio and capitalizing on key opportunities in the mining sector.
