BHP is accelerating its copper production in South Australia with the planned expansion of its Olympic Dam smelter and refinery. The South Australian Government has commenced the application and assessment process for this expansion, marking a significant step forward in BHP’s strategy to double copper production in the region over the next decade.
BHP’s Copper Growth Strategy
The company highlighted its ambitions in South Australia in its FY24 financial results. The results revealed a phased strategy to increase refined copper cathode production to 500,000 tonnes annually by the early 2030s. By the mid-2030s, production could potentially reach 650,000 tonnes. It would represent a significant increase from the 322,000 tonnes produced in FY24.
Anna Wiley, company’s Asset President of Copper South Australia, emphasised the importance of this step. “Today’s announcement is crucial for both BHP and the South Australian Government as we work together towards our shared ambition to significantly increase copper production in this state,” Wiley said.
Ongoing Projects in South Australia
BHP is already growing its copper production in South Australia. The company has multiple projects and studies underway across all its operating sites. It includes the Olympic Dam, Prominent Hill, and Carrapateena underground mines. These sites provide copper concentrate to the Olympic Dam smelter and refinery complex, which produces refined copper cathodes.
In addition to these operations, BHP is progressing its Oak Dam project. Recently, the company declared an inferred mineral resource of 1.34 billion tonnes at a 0.66% copper grade at Oak Dam. It includes a higher-grade mineralisation area containing 220 million tonnes at a 1.96% copper grade.
South Australian Government’s Role
The South Australian Government has declared BHP’s proposed development an “impact-assessed development.” This declaration marks the beginning of a rigorous consultation and decision-making process. South Australian Minister for Energy and Mining, Tom Koutsantonis, explained the importance of this process. “It’s an opportunity for the company to make a case for this proposal and allow the South Australian community to weigh up the benefits the project could bring against any economic, social, and environmental impacts it could have,” Koutsantonis said.
Koutsantonis also expressed optimism about company’s ongoing investment in South Australia. He acknowledged that while the proposed development has potential, South Australians have the right to be cautious. The final decision of investment for phase one of the smelter and refinery expansion is anticipated in the first half of FY27. “Following the assessment process, BHP’s final investment decision rests with them,” Koutsantonis added.
BHP’s Strategic Timing
BHP’s proposed expansion aligns with the global push for decarbonisation. The timing is just right since South Australia is in a prime position to benefit from the rising need for copper, a vital component in renewable energy technologies.BHP’s investment could solidify South Australia’s role as a tier-one copper province, ensuring a significant contribution to the global energy transition.
The State Government’s declaration underscores the significance of the project. The copper opportunity in South Australia has already been outlined in the State Prosperity Project. “Our state is home to over two-thirds of Australia’s total copper resources,” Koutsantonis noted. “BHP’s proposal represents an opportunity to consolidate their huge investments and make significant returns to shareholders.”
Impact on South Australia
For South Australia, BHP’s expansion could substantially boost the value added to the state’s natural resources. This, in turn, could lead to more significant economic opportunities for South Australians. The potential doubling of copper production would strengthen South Australia’s position in the mining commodities sector, especially in copper mining. This expansion would also enhance South Australia’s contribution to the global energy transition, solidifying its reputation as a leader in mining commodities.
Conclusion
BHP’s copper mining ambitions in South Australia are gaining momentum. The planned expansion of the Olympic Dam smelter and refinery, supported by the South Australian Government, is a crucial step toward doubling copper production in the region. With ongoing projects and strategic investments, BHP can play a key role in the global copper market.
As the world moves towards a greener future, BHP’s commitment to copper production in South Australia is timely. The company’s investments in mining commodities will benefit its shareholders and bring economic growth to South Australia. The coming years will be critical as BHP and the South Australian Government work together to realise their shared vision for the state’s copper industry.
