BHP Plans to Double South Australia Copper Production, Eyes Major Smelter Upgrade at Olympic Dam

BHP has announced plans to more than double its copper production in South Australia over the next decade, with a final investment decision on a significant smelter upgrade at Olympic Dam expected within the next two and a half years. The global mining giant also revealed a substantial increase in copper and gold resources at its Oak Dam deposit, located 65 kilometers southeast of the Olympic Dam mine and smelter.

The company has delineated 1.34 billion tonnes of copper and gold ore at Oak Dam and is currently seeking approvals from the state government for new shafts at both Oak Dam and Olympic Dam. These new shafts would allow BHP to explore the deposits at greater depths, further expanding its resource base.

BHP has expanded its copper operations in South Australia through the $6.4 billion acquisition of OZ Minerals in May last year, adding the Prominent Hill and Carrapateena copper and gold mines to its portfolio. This integrated operation, now known as Copper South Australia, contributed $928 million in underlying earnings to BHP in the last financial year, with total revenue of $4.1 billion.

For the current year, BHP is projecting copper production in South Australia to rise to between 310,000 and 340,000 tonnes, up from 322,000 tonnes last year. The company is also exploring options for a major expansion of the Olympic Dam smelter and refinery, with plans to increase output to more than 500,000 tonnes by the early 2030s and potentially up to 650,000 tonnes by the mid-2030s.