BHP is advancing its copper production ambitions in South Australia, with the recent announcement by the South Australian Government marking a crucial step forward.
The State Government revealed it had commenced the application and assessment process for BHP’s planned smelter and refinery expansion at Olympic Dam, which will support BHP’s strategy to potentially double copper production in the region over the next decade.
BHP’s plans were highlighted in its full-year results for the 2023–24 financial year (FY24), which revealed a phased approach to increasing refined copper cathode production to 500,000 tonnes annually by the early 2030s, with a possible boost to 650,000 tonnes by the mid-2030s.
This would be a significant jump from the approximately 322,000 tonnes produced in FY24.
“Today’s announcement is an important step for BHP and the South Australian Government as we work together towards our shared ambition to significantly increase copper production in this state,” BHP’s asset president copper South Australia Anna Wiley said.
“We are already growing BHP’s copper production in South Australia with projects and studies underway at all of our operating sites, and we’re moving at pace to potentially double our current production by the middle of the next decade.”
Central to BHP’s operations in South Australia are the Olympic Dam, Prominent Hill, and Carrapateena underground mines, which provide copper concentrate to the smelter and refinery complex at Olympic Dam.
BHP is also progressing its Oak Dam project, where it recently declared an inferred mineral resource of 1.34 billion tonnes at 0.66 per cent copper grade, including a higher-grade mineralisation area.
The State Government’s declaration of BHP’s proposed development as an ‘impact assessed development’ sets the stage for a rigorous consultation and decision-making process.
“This declaration marks the beginning of a robust consultation and decision-making process,” South Australian Minister for Energy and Mining Tom Koutsantonis said.
“It’s an opportunity for BHP to make a case for this proposal, and allowing the South Australian community to weigh up the benefits the project could bring against any economic, social and environmental impacts it could have.
“It’s very encouraging to see BHP planning for ongoing significant investment in South Australia – as we’d expect, they’ve done a mountain of work before reaching this point and their public statements about the potential of this copper plan are significant.”
BHP’s final investment decision on phase one of the expansion is anticipated in the first half of FY27, a pivotal moment for both the company and the state.