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OZ Minerals Copper Concentrate Spills After Train Derails Due to Floodwater

A second train was derailed on Tuesday caused by floodwater brought by ex-tropical cyclone Grant. The accident involved OZ Minerals (ASX: OZL) whose $8-millon shipment of copper concentrates partly spilled into the Edith River.

According to the company's statement, early assessment showed that between 1,000 and 1,200 tonnes of 1,500 tonnes of copper concentrates spilled into the river. The materials were shipped by rail from OZ's Prominent Hill mine in South Australia to Darwin for export.

"From an environmental perspective, any concentrate that has settled will be cleaned up. 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," OZ said in a statement issued on Wednesday.

OZ Minerals said in its statement filed with the Australian Stock Exchange that as soon as there is safe access it would be able to provide a better assessment of the extent of the damage on the river.

The train was operated by Genesee & Wyoming Australia, which also ran another train that derailed in the Northern Territory on the same day due to flood waters. The first accident involved iron ore shipment by Rio Tinto.

OZ told shareholders that the rail accident would not financially affect the company nor operations at Prominent Hill. However its share prices traded 13 cents lower at $10.28 on Wednesday afternoon.

The company added that copper concentrate shipment targets for the first quarter of 2012 would be met before the quarter ends.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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