Al Hadeetha Resources, partly owned by Australian-based Alara Resources, has announced a delay in its maiden shipment of copper concentrate due to a technical snag at its new plant in Al Sharqiyah North Governorate, Oman. The issue involves a 'tailing filter press' that has not been performing optimally at the 1 million tonne per annum capacity copper concentrator facility.
The delay affects the delivery of the first copper concentrate shipment, which was initially scheduled for April 2024. This project marks a significant milestone as it represents the first operation by an international mining firm to develop copper and associated gold resources in Oman following the recent overhaul of the country's mining law.
Trafigura, a global commodities group, is set to be the offtaker for the copper concentrate produced by the project, based on an eight-year agreement that locks in all output from the start of production. The pricing of the copper concentrate is determined by the official London Metal Exchange cash settlement quotation for Grade A copper at the time of delivery.
Although the copper concentrator plant was successfully commissioned earlier this year, processing initially low-grade ore to produce a low-grade concentrate, the tailing filter press's underperformance has hindered the plant’s ramp-up to full capacity. Engineers are currently addressing the issue, and a resolution is anticipated.
Al Hadeetha Resources has stated that a new timeline for the first sale of copper concentrate will be announced once more information is available.
