Legal Battle Looms as Altair Challenges BHP’s Undervaluation of Key Mining Land

Background to the Dispute

Altair Minerals Limited (ASX – ALR) has announced it will proceed to the South Australian Wardens Court to resolve a valuation dispute with mining giant BHP over the Olympic Domain Project. The project, which lies adjacent to BHP’s Oak Dam Deposit; a massive copper-gold resource; has become a focal point due to BHP’s plans to use Altair’s land for critical infrastructure development.

BHP’s Oak Dam Deposit boasts 1.34 billion tonnes at 0.66% copper and 0.33 grams per tonne gold, making it a significant asset in the region. Altair’s Olympic Domain Project covers a 267 square kilometre stretch of land strategically positioned between Oak Dam and the Olympic Dam Highway, a vital corridor for any infrastructure connecting the deposit to broader transport routes.

Negotiations and Valuation Disagreement

Over several months, Altair and BHP engaged in negotiations after BHP sought to establish an access road and infrastructure corridor through Altair’s tenements. BHP’s initial offer to Altair was deemed by the junior explorer as significantly undervaluing the project’s worth, especially considering the approximately $8 million already invested in exploration and the presence of promising mineralisation intercepts.

Altair responded with a counteroffer reflecting the project’s potential and strategic importance, but the parties failed to reach an agreement. Consequently, both have agreed to submit the matter to the Wardens Court for adjudication, with Altair scheduled for directions on 10 September 2025.

Strategic and Exploration Significance

The Olympic Domain Project is not only a key exploration asset with encouraging drill results; such as intercepts of 115 metres at 0.32% copper equivalent and 61 metres at 0.33% copper equivalent; but also a critical landholding for infrastructure development in the district. Altair stresses that any infrastructure corridor connecting Oak Dam to the highway must involve its land, underscoring the necessity of a fair valuation.

Moreover, Altair is actively negotiating with two other major mining companies for potential joint ventures or investments, reinforcing its belief that BHP’s offer undervalues the project relative to market interest.

Financial and Operational Outlook

Altair assures shareholders that the legal proceedings will have an immaterial impact on its cash position and will not hinder its planned exploration activities. The company has retained leading commercial mining lawyers to vigorously defend the value of its assets and uphold principles of fairness for junior explorers in the industry.

While the outcome of the Wardens Court adjudication remains uncertain, Altair is confident that the process will lead to a fairer offer from BHP, potentially unlocking additional value for shareholders and setting a precedent for future negotiations in the region.