The South Australian government has started the assessment process for BHP’s proposed smelter and refinery expansion at Olympic Dam, aiming to boost copper production.
The South Australian government has kicked off the application and assessment process for BHP’s proposed expansion of its smelter and refinery at Olympic Dam. If approved, the project will include a new, second copper smelting furnace, expanding the existing facilities at Olympic Dam.
The announcement, published in the South Australian Government Gazette on Thursday, was highlighted by BHP as a critical step toward increasing its copper production. BHP is advancing a phased strategy to boost copper output at its South Australian operations, as detailed in the company’s full-year results presentation earlier this week.
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“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,” said Anna Wiley, BHP asset president for copper in South Australia.
The miner aims to increase production to 500,000 tonnes per year of refined copper cathode by the early 2030s, with potential further growth to 650,000 tonnes per year by the mid-2030s, up from about 322,000 tonnes in the last financial year. BHP’s copper operations in South Australia include the Olympic Dam, Prominent Hill, and Carrapateena underground mines, which supply copper concentrate to the Olympic Dam smelter and refinery complex.
Expansion Plans and Exploration at Oak Dam
BHP is also advancing exploration at its Oak Dam prospect, where it recently announced an inferred mineral resource of 1.34 billion tonnes at a copper grade of 0.66% and a gold grade of 0.33 g/t. This includes a higher-grade area containing 220 million tonnes at 1.96% copper and 0.68 g/t gold at a 1% copper cut-off. A final investment decision (FID) on the first phase of the smelter and refinery expansion is expected in the first half of the 2027 financial year.
South Australian Premier Tom Koutsantonis emphasized the importance of the assessment process, stating that it would allow for robust consultation. “It’s an opportunity for BHP to make a case for this proposal, and for the South Australian community to weigh up the benefits against any economic, social, and environmental impacts it could have.”
The Strategic Importance of Copper for South Australia
The South Australian Chamber of Mines and Energy (Sacome) welcomed BHP’s staged approach to positioning South Australia as a leading copper jurisdiction. “South Australia was known as ‘The Copper Kingdom’ in the 1840s when copper was first discovered. Today’s copper renaissance is crucial to our everyday lives and to our energy transition,” said Sacome CEO Rebecca Knol.
Koutsantonis highlighted that BHP’s expansion proposal arrives at a time when South Australia is ideally positioned to capitalize on the global push towards decarbonization. He acknowledged the historical challenges, noting, “We’ve been down this path before, and South Australians have a right to be sceptical. Following the assessment process, BHP’s FID rests with them.”
A Major Step Forward for South Australia’s Copper Industry
BHP’s proposed expansion at Olympic Dam represents a significant investment in South Australia’s future as a key player in the global copper market. The outcome of the assessment process and the company’s final investment decision will be critical in shaping the next phase of copper production in the state, reinforcing South Australia’s legacy as a major copper hub.
