And growing copper and gold miner OZ Minerals says annual copper production remains on target, despite a small drop in production in the September quarter.
OZ operates the expanding Prominent Hill mining complex in remote South Australia.
OZ Minerals said in the September quarter production report that on Wednesday that third quarter copper production totalled 27,217 tonnes, down from 28,017 tonnes in the previous corresponding period.
That included a major planned mill shut-down in the quarter.
Despite the dip in output, OZ says it is on track to meet guidance for production of 100,000 to 110,000 tonnes with 80,942 tonnes produced in the fist 9 months of the year.
Gold production in the three months to September fell to 36,064 ounces, from 44,219 ounces in the previous corresponding period.
The company said the fall in gold production was due to a decision made to concentrate on copper mining in order to achieve copper production targets in the quarter.
Anticipated gold production in 2011 is expected to be between 150,000 ounces and 160,000 ounces.
Silver production in the three months to September was 167,620 ounces, up from 152,467 ounces in the previous corresponding period.
Cash costs in the three months to September were 71.8 US cents per pound, higher than in the June quarter, due to higher mining costs, OZ Minerals said.
Year-to-date costs are 65.9 US cents per pound and full year costs are expected to average less than 70 US cents per pound.
OZ said the Ankata underground development progressed well and remains on schedule to provide first ore for processing from underground in the first quarter of 2012.
The underground operation will step up over the course of 2012 "and is anticipated to reach its full 1.2 Mt per annum mining rate in Q3 2012."
The company said that "pre-production capital for the project is now expected to be approximately $148 million (compared with the original budget of $135 million – an increase of less than 10%)."
OZ Minerals shares rose 1.6% or 19c to $11.55.
