OZ Minerals estimates it’s newly acquired Carapateena asset will cost about USD 2 billion to develop and the company will at the same time continue to hunt for acquisitions.

Mr Terry Burgess CEO of OZ Minaral said that "I would like to be able to keep our options open. At this stage, I think we'll be able to do both. The miner has USD 750 million budgets for business development activities and has been seeking acquisitions since mid 2009."

It bought the Carapateena copper and gold deposit in South Australia for USD 250 million earlier this year, saying it could be in production in seven to 8 years with 15 to 20 year mine life.

Mr Burgess said that OZ Minerals may have a sufficient cash balance and cash flow from its flagship Prominent Hill gold and copper mine in South Australia to develop Carapateena where exploration was ramping up.

He said that it would be a reasonable guesstimate that a planned underground mine development at Carapateena would cost USD 1 billion while a processing plant would cost a further USD 1 billion. The USD 750 million business development budgets would be kept aside for purchases and not be used for general business activities. We need to be ready to look at opportunities.

OZ Minerals annual copper production target remained on track, despite a drop in output for the three months to the end of September to 27,217 tonnes from 28,017 tonnes in the previous corresponding period.

The company seeks to produce 100,000 tonnes to 110,000 tonnes of copper for the full year. Gold production in the September quarter was 36,064 ounces down from 44,219 ounces in the previous corresponding period. Anticipated gold production in 2011 is expected to be between 150,000 ounces and 160,000 ounces.

(Sourced from the Australian)