Ora Banda Mining has approved a $63.2 million investment to advance its growth projects, including a new 3Mtpa processing plant and the Waihi open pit mine, marking a significant step in expanding its Western Australian operations.
- $10 million allocated to progress 3Mtpa processing plant from DFS to FEED
- $30 million committed to commence Waihi open pit mining, third operation
- $23 million earmarked for accommodation expansions at Davyhurst and Siberia camps
- Projects fully funded from existing cash reserves with strong operational cashflow
- Updated FY26 capital guidance reflects increased growth investments
Strategic Investment in Processing Capacity
Ora Banda Mining Ltd (ASX, OBM) has taken a decisive step forward in its organic growth strategy by approving a $63.2 million capital investment package. Central to this is the commitment of $10 million to advance the development of a new 3 million tonnes per annum (Mtpa) processing plant, moving from the definitive feasibility study (DFS) phase into front-end engineering design (FEED). This new standalone mill will sit alongside the existing 1.2Mtpa Davyhurst processing plant, aiming to significantly boost processing capacity and operational efficiency.
Waihi Open Pit, A New Mining Frontier
Complementing the plant expansion is the greenlighting of a $30 million pre-production capital spend to kickstart open pit mining at Waihi, located just 3 kilometres from Davyhurst. This development will establish Waihi as Ora Banda’s third mining operation, with mining activities expected to commence in the March 2026 quarter. The open pit is projected to yield approximately 12,700 ounces over eight months, feeding ore into the existing processing facility. Notably, ongoing drilling at Waihi’s Golden Pole lode continues to reveal promising results, underpinning the potential for future underground mining operations.
Supporting Growth with Accommodation Expansion
To support the operational scale-up, Ora Banda is investing $23 million in expanding accommodation capacity. This includes constructing a new 150-room village at Siberia and adding 100 rooms to the existing Davyhurst camp, increasing its capacity to 400 rooms. These expansions are critical to housing the growing workforce required for the company’s expanding mining activities and are scheduled across FY26 and FY27.
Financial Strength and Updated Guidance
Importantly, these capital projects are fully funded from Ora Banda’s robust cash reserves, which stood at A$155 million as of December 2025, alongside strong cash flows from ongoing operations. Reflecting these investments, the company has revised its FY26 capital guidance, increasing growth capital expenditure by $57 million to $143 million, while maintaining exploration and resource development budgets.
Looking Ahead
With these projects underway, Ora Banda is positioning itself for a significant uplift in production capacity and operational footprint in Western Australia. The upcoming resource model update for Waihi, incorporating recent drilling success, will be a key milestone to watch in the June quarter of 2026, potentially unlocking further underground mining opportunities.
Bottom Line?
Ora Banda’s bold capital commitment signals a transformative phase, but execution and resource expansion will be critical to sustaining momentum.
Questions in the middle?
- How will the updated Waihi resource model impact the feasibility of underground mining?
- What are the potential risks to the timeline and budget for the new processing plant’s FEED phase?
- How might increased accommodation capacity influence operational efficiency and workforce stability?