Fluor-Hatch bags EPCM contract for BHP’s Olympic Dam smelter and refinery expansion in South Australia

BHP has awarded a crucial engineering, procurement, and construction management (EPCM) contract to a joint venture between Fluor Corporation and Hatch, marking a significant step toward expanding copper production capacity at the Olympic Dam mine in South Australia. The contract supports a proposed smelter refinery project, which, if approved, will drastically increase refined copper output to meet surging global demand.

The expansion plan is part of BHP’s long-term copper production strategy, aiming to increase refined copper cathode production from its current 200,000 tonnes per year to over 500,000 tonnes by the early 2030s, with a pathway to reach 650,000 tonnes annually from the mid-2030s. The project remains subject to a Final Investment Decision (FID) by BHP, expected in the first half of 2027. In the meantime, Fluor and Hatch will lead early-stage planning, feasibility studies, and strategy development under an initial A$40 million investment.

How Will the Olympic Dam Expansion Boost South Australia’s Copper Industry?

BHP’s expansion of the Olympic Dam smelter refinery project is a major milestone in its South Australia copper growth plan. The initiative aims to solidify the region’s role as a global leader in copper production expansion, driven by rising demand for critical minerals in electric vehicles (EVs), renewable energy infrastructure, and advanced technology manufacturing.

The project is expected to strengthen Australia’s position in the global copper market by ensuring a stable supply of high-quality refined copper. It will enhance local economic development through increased investment, job creation, and infrastructure improvements. Sustainability will also be a key focus, with plans to incorporate cutting-edge refining technologies to reduce environmental impact.

A key component of the expansion includes the installation of a second smelter furnace to increase copper matte production while repurposing the existing Direct-to-Blister Flash Furnace to facilitate additional refining processes. Additionally, significant upgrades to water supply infrastructure and electricity transmission networks will support the new capacity.

Why Is Copper Demand Surging, and How Will BHP’s Expansion Address It?

Global copper demand is forecast to rise by 70% by 2050, driven by rapid growth in renewable energy projects, EV adoption, and increasing industrial applications. Copper plays a crucial role in electric vehicle batteries, wind turbines, solar panels, and data center infrastructure, making it a key element in the global energy transition.

BHP’s investment in South Australia copper production aligns with this growing demand, ensuring a steady supply of refined copper while reducing reliance on overseas processing. The company’s multi-phase copper production expansion strategy will significantly contribute to Australia’s standing as a top-tier copper producer.

Rashpal Bhatti, BHP’s Group Procurement Officer, underscored the importance of Fluor and Hatch’s involvement in delivering the smelter refinery project. He stated that Fluor and Hatch bring extensive experience in managing large-scale EPCM projects, ensuring that BHP can efficiently progress toward a final investment decision while maintaining cost discipline and sustainability commitments.

How Will Fluor and Hatch Drive the Smelter Refinery Project?

As part of the joint venture, Fluor and Hatch will oversee engineering, procurement, and construction management for the expansion. The companies will leverage their expertise in mega-project execution and sustainable refining technologies to ensure that the smelter and refinery upgrades align with BHP’s production goals.

Harish Jammula, President of Mining & Metals at Fluor, highlighted the strategic importance of this expansion. He stated that the project is a significant step in supporting Australia’s transition to a leading copper refining hub. By expanding downstream processing capacity, local supply chains will remain robust while advancing sustainable smelting technologies.

Similarly, Tina Armstrong, Global Managing Director – Metals at Hatch, emphasized the importance of collaboration. She stated that Hatch is excited to work alongside BHP and Fluor to help drive this critical expansion. The smelter refinery project will play a vital role in South Australia’s economic and industrial growth, reinforcing its position as a major copper production hub.

What Are the Next Steps for BHP’s Smelter and Refinery Expansion?

With Fluor and Hatch now leading engineering and procurement operations, BHP will continue refining its investment strategy for the South Australia copper expansion. The contract’s phased execution aligns with BHP’s commitment to making a Final Investment Decision in 2027, allowing time for further technical assessments and regulatory considerations.

If approved, construction will commence immediately after FID, with full-scale production increases anticipated by the early 2030s. BHP’s Olympic Dam expansion is poised to transform copper production expansion in Australia, ensuring long-term economic benefits and supporting the global push toward clean energy and technological advancements.