A Genesee & Wyoming Australia train travelling north to Darwin derailed in bad weather on Tuesday morning near Edith River, Northern Territory.

OZ Minerals understands the two GWA employees on the train were evacuated and are now safe.

Some of the wagons on the train were carrying copper concentrate from Prominent Hill. The total tonnage of copper concentrates being railed on the train was approximately 1,500 dry tonnes.

Limited access to the area has made it difficult to determine exactly how much copper concentrate may have been directly impacted by the derailment but early assessments indicate that the amount in the wagons which derailed into the river might be in the order of 1,000 tonnes to 1,200 tonnes.

As soon as there is safe access the Company will be able to better assess this. From an environmental perspective, in consultation with the relevant authorities, concentrate that is accessible will be cleaned up when the area can be safely accessed. Given the large volume of water flowing through the system it is likely that any concentrate that has been impacted by the water would be highly diluted. The OZ Minerals Crisis Management Response was initiated on notification of the incident on Tuesday.

The total value of the concentrates on the train was in the order of USD 7 million to USD 8 million and preliminary discussions on the loss have been initiated with various parties. This is not considered financially material for the company. As stated to the market previously it is our intention to start our new containerised rail transport through Adelaide and Darwin early in the first quarter of 2012.

It is expected that copper concentrates shipments planned for Q1 2012 will all be completed before the end of the quarter.

There has been no impact to operations at Prominent Hill.