Mining Giants Clash Over Strategic South Australian Tenements
Altair Minerals Limited (ASX:ALR) has announced its intention to proceed to South Australian Wardens Court against BHP Olympic Dam Corporation. The dispute centres on BHP’s infrastructure plans for the Oak Dam Deposit and the valuation of Altair’s adjoining Olympic Domain Project.
The companies have engaged in months of negotiations regarding BHP’s development of its Oak Dam Deposit. BHP requires access through Altair’s project area for infrastructure and development purposes. Both parties have exhausted commercial discussions and now seek judicial resolution.
BHP Offer Rejected as Significantly Undervalued
BHP presented an offer to Altair for use of the Olympic Domain Project area. Altair’s board believes the offer significantly undermines the project’s true value. The company provided a counteroffer to BHP but neither party reached agreement.
Both companies have agreed to proceed with Wardens Court for adjudication on the matter. Altair has retained leading commercial mining lawyers for the legal proceedings. The decision to pursue court action follows extensive bilateral negotiations that failed to produce mutually acceptable terms.
Court directions have been scheduled for 10th September 2025. BHP has completed its submissions according to mail confirmation received by Altair. The legal process will now move forward with both companies presenting their respective cases to the court.
Strategic Location Drives Value Proposition
Altair’s Olympic Domain Project comprises three exploration licences spanning 267 square kilometres. The tenements EL6675, EL6122 and EL6183 remain in good standing according to the company. Each licence contributes to the strategic positioning that makes the project valuable for infrastructure development.
The project sits directly between BHP’s Oak Dam Deposit and the Olympic Dam Highway across a 30-kilometre stretch. BHP’s Oak Dam contains resources of 1.34 billion tonnes at 0.66 per cent copper and 0.33 grams per tonne gold. This positioning creates what Altair describes as the path of least resistance for any infrastructure corridor in the district.
BHP seeks to construct an access road and infrastructure corridor connecting Oak Dam to the Olympic Dam Highway. The company has applied for a Miscellaneous Purposes Licence to facilitate this development. The proposed corridor would provide the most direct route from the deposit to existing transport infrastructure.
Altair rejected the MPL application under Section 80 of the South Australia Mining Act 1971. This rejection triggered the subsequent commercial negotiations between both parties. The rejection demonstrates Altair’s commitment to securing fair compensation for access rights.
Exploration Investment Supports Valuation Case
Altair has invested approximately $8 million in exploration across the Olympic Domain Project. The exploration program has identified significant mineralisation requiring follow-up drilling. This substantial investment forms part of Altair’s argument for higher compensation from BHP.
Two drill intercepts demonstrate the project’s potential value. Hole HWDD08 returned 115 metres at 0.32 per cent copper equivalent from 1040 metres depth. Hole HWD1 intersected 61 metres at 0.33 per cent copper equivalent from 901 metres. These results indicate the presence of substantial mineralisation within the proposed infrastructure corridor.
Both intercepts narrowly missed geophysical anomaly cores and represent high-priority exploration targets. The proposed infrastructure corridor overlaps these highly prospective drill intercepts. Altair argues that BHP’s offer fails to consider the impact on these exploration prospects.
The company has identified numerous other significant intercepts across the project area. These results suggest potential for major discovery that would significantly benefit Altair shareholders. The copper equivalent calculations use current market prices of $4.36 per pound for copper and $3,371 per ounce for gold.
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Alternative Partners Confirm Value Assessment
Altair has commenced negotiations with two other major mining companies regarding joint venture opportunities. These discussions involve potential investment into the Olympic Domain Project. The alternative negotiations demonstrate market interest in the project beyond BHP’s requirements.
The discussions reinforce Altair’s belief that BHP’s offer significantly undervalues the project. The company considers these negotiations validate its counteroffer position. Multiple interested parties suggest the project holds substantial commercial value beyond BHP’s infrastructure needs.
CEO Faheem Ahmed emphasises Altair’s commitment to defending fair value for exploration rights. The company believes BHP’s offers undermine fairness principles for the junior exploration industry. Ahmed states the company will continue to rigorously defend the fair value of its exploration rights.
Minimal Financial Impact Expected
Altair confirms the Wardens Court proceedings will have immaterial impact on its cash balance. The company maintains its planned exploration programs will continue without disruption. The legal costs represent minimal exposure compared to potential project value.
Altair believes the court process will result in obtaining a fair offer from BHP. The company states it will vigorously defend asset values for shareholder benefit. Altair aims to uphold fairness principles and set precedent for other junior exploration companies.
The Olympic Domain Project represents both exploration opportunity and strategic infrastructure position. Any agreement must adequately compensate Altair for exploration rights and future development potential. The court decision will establish important precedents for similar disputes in the Australian mining sector.
