The miner announced the buyback as it outlined its updated capital management framework to the ASX on Friday morning.

“OZ Minerals’ strong operational performance and enviable cash position means that we can chart a course for both value accretive growth and shareholder return,” managing director and CEO Andrew Cole said.

“We are determined to reward shareholders through both developing keystone value accretive projects like Carrapateena and capital management.”

Earlier this morning, Oz Minerals announced plans to push forward with its Carrapateena copper and gold project, north of Port Augusta.

The plans are expected to add a projected $A150 million in average annual cashflow by 2019 and hundreds of mining jobs.

The project aims to create about 400 construction jobs and a similar number of permanent jobs and is welcomed news to SA resources sector that has felt the impact of falling global mineral prices.

“Our plan for Carrapateena to become a world-class project that generates strong returns has taken a big step forward,” Cole said.

“Whatever lens you look through, whether it is value, rate of return, grade, cost, mine life, production profile, jobs or scalability, we believe Carrapateena will be an outstanding project.

“We have identified a stand-out option that we expect will bring hundreds of jobs to the region and make a lasting difference to the local community.”

OZ Minerals said its updated framework would focus on maximising shareholder value through strong competition for the application of surplus capital between paying dividends; and/or buybacks, and/or value accretive investments.

The allocation of surplus capital between paying dividends (including franked dividends subject to available franking credits in the near term), buybacks and value accretive investments will be reviewed in each period.

OZ Minerals said it would continue to target a minimum dividend payment of 20 per cent of net cash generation subject to the attractiveness of conducting buybacks and/or investment opportunities.

The buyback will be funded from existing cash reserves and will be implemented in the coming weeks.

The total number of shares to be purchased under the buyback will be dependent on business and market conditions and will be subject to normal black-out and other listing restrictions.

“With Prominent Hill’s strong cash flows and our current cash balance, we are confident that we can fund the construction of Carrapateena, continue returns to shareholders and also target value accretive growth investments,” Cole said.

with AAP