BHP Group Ltd. is advancing a major expansion of its copper smelter and refinery at Olympic Dam in South Australia, aiming to meet the surging global demand for copper, crucial for the green energy transition. The South Australian Government has initiated an application and assessment process for this expansion, signaling a vital development in the region’s mining capabilities​.

The expansion strategy detailed by BHP in its FY24 results outlines an ambitious plan to increase annual copper production from approximately 322,000 tonnes to 500,000 tonnes by the early 2030s, with a potential increase to 650,000 tonnes by the mid-2030s​.

This significant boost in production is projected as part of BHP’s broader efforts to strengthen its copper output, which plays an extensive role in the global shift towards renewable energy. The increase in production capacity is critical as it aligns with the decreased demand for iron ore, previously BHP’s top revenue generator​.

The proposed project includes the construction of a new, second smelting furnace at Olympic Dam, which would enhance the current facilities and allow for the processing of increased material volumes from BHP’s extensive copper asset portfolio in South Australia, including Prominent Hill and Carrapateena mines​. This expansion is not just a technical upgrade but is poised to have substantial economic, social, and environmental impacts, warranting a rigorous assessment and community consultation process.

In addition to infrastructure expansion, BHP is also pushing forward with its exploration activities at the nearby Oak Dam prospect, which has shown promising high-grade copper and gold mineralisation​. This exploration is part of BHP’s strategy to secure a robust supply chain of raw materials essential for copper cathode production.

The expansion’s final investment decision is scheduled for the first half of FY27, indicating BHP’s calculated approach towards escalating its production capacity while ensuring environmental and social governance standards are met​.

This development could transform South Australia into a leading copper jurisdiction, underpinning the state’s economic growth and positioning it as a crucial player in the global copper market, essential for technologies such as electric vehicles and renewable energy infrastructure​.

Olympic Dam, located in South Australia, is one of the world’s largest and most diverse mining operations. It is a significant poly-metallic deposit, meaning it contains more than one substantial body of ore. Primarily, it is known for its vast resources of copper, but it also holds significant quantities of uranium, gold, and silver.

The Olympic Dam site was discovered in 1975 by Western Mining Corporation (WMC) following an extensive exploration campaign. Its unique ore body is hosted in a large underground deposit, which lies under the arid desert of northern South Australia, approximately 560 kilometers north of Adelaide.

Mining operations began in 1988, and since then, the site has developed into a fully integrated processing facility that includes a mine, concentrator, smelter, and refinery. This allows Olympic Dam to produce copper cathodes, uranium oxide, gold, and silver.

The mine is renowned not only for its size and production capacity but also for its substantial reserves. The deposit is the world’s largest known single deposit of uranium and the fourth-largest copper deposit. Its reserves allow for potential expansion and long-term production sustainability, which BHP, the current operator after acquiring WMC in 2005, has been planning through various proposed expansion projects aimed at increasing output and extending the life of the mine.

Olympic Dam is also a key player in the local economy, providing employment and development opportunities, and it plays a significant role in the global commodities market due to its production of essential metals. The operation of this site is considered to be a cornerstone in BHP’s portfolio of assets, reflecting its significance in the mining sector.

  Anna Wiley, BHP, copper production, green energy, mining expansion, Oak Dam, Olympic Dam, Prominent Hill, renewable resources, South Australia