The OZ Minerals Board granted final investment approval for the Pedra Branca underground mine.
First development ore is targeted for mid-2020.
With a mine life of eight years, Pedra Branca has a standalone net present value (NPV) of circa US$55 million for a pre-production capital investment of approximately US$35 million.
When combined with the sale of concentrate to Vale, the NPV increases to circa US$75 million.
Shares in OZ Minerals (ASX:OZL) trading 1.2 per cent higher at $10.66.