BHP’s Olympic Dam Expansion Set to Boost Australia’s Role in Global Copper Supply
BHP Group’s decision to expand its smelter and refinery at the Olympic Dam operation in South Australia aims to position the country as a key player in the global copper supply chain, particularly outside of China. The expansion, announced on August 30, could raise Olympic Dam’s refined copper cathode output to 500,000 metric tons annually by the early 2030s, with potential growth to 650,000 metric tons by the mid-2030s. Current production stands at 322,000 metric tons per year as of fiscal 2024.
As nations such as the US and EU prioritize reducing reliance on China's dominance in battery metal processing, Australia’s role in providing sustainable, strategic minerals is set to grow. South Australia, which contains over two-thirds of the nation’s copper resources, is seen as a key area of development. In 2023, Australia ranked as the eighth-largest copper producer globally.
Coda Minerals CEO Chris Stevens emphasized the importance of increasing domestic copper processing capacity. "If you're dependent on smelters overseas, especially in China, you're creating a huge supply chain risk," Stevens said.
BHP’s expansion plans come at a critical time, as Glencore’s Mt Isa smelter in Queensland is set to close in 2030, leaving Olympic Dam as Australia’s main copper smelting facility. A final investment decision on phase one of the project is expected by mid-2027.
Anna Wiley, BHP’s Asset President for Copper South Australia, stated that the company is already working on several projects to expand copper production, highlighting the growing demand driven by the energy transition, including electric vehicles, renewable energy, and power infrastructure.
Global copper supply constraints are becoming more apparent, with a forecasted 219,000 metric-ton deficit in the copper concentrate market this year. BHP’s expansion efforts are aimed at addressing this shortfall as demand for smelting and refining increases globally.
