Picture a man with a high-level role at BHP. He decides to take his expertise and see if he can’t grow a smaller company elsewhere. But right before his new life is set to begin in the exciting copper exploration sector, everything he’s just worked towards is now submerged underwater.
You haven’t entered the Twilight Zone – you’re just on-site at 29Metals’ (ASX:29M) Queensland-based Capricorn Copper mining project.
For the last two years, 29Metals has been battling water inundation at Capricorn. Heavy flood-inducing rain has been overlapping with the normal wet season, ultimately hitting the copper explorer again and again.
After similar troubles in 2023, the company had to straight up suspend all operations on-site in March of this year – and in that mothball state the company still remains.
It’s perhaps unsurprising the company is nervous ahead of the upcoming wet season, which is effectively to begin any day now.
But to that end, the company has delivered 29Metals some respite. In short, the QLD environmental department tasked with regulating this kind of thing has removed limits on how much treated water the company can discharge.
The main thing is water needs to be treated before it’s released, given where Capricorn sits means water evacuated ends up, literally, downstream in natural creeks.
“This interim mechanism, along with the significant investment in water treatment and release infrastructure through 2024, further positions the site for optimal water reduction outcomes during the 2024/25 wet season,” 29Metals’ CEO James Palmer said.
(Palmers is the ex-BHP hire.)
“We look forward to the ongoing support of the Queensland Government, which will be important as we continue to progress Capricorn Copper towards a successful and sustainable future restart of operations,” he added.
29M last traded at 41.5cps.
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