The South Australian government has initiated the application and assessment process for BHP’s proposed expansion of its Olympic Dam copper smelter and refinery. If approved, this project would significantly boost BHP’s copper production capabilities, potentially doubling current output by the mid-2030s.
BHP, the world’s largest mining company, views this expansion as a key milestone in its strategy to enhance copper output in South Australia. The expansion plans include the construction of a second copper smelting furnace at Olympic Dam. This would allow BHP to increase production to 500,000 tons per year of refined copper cathode by the early 2030s, with the potential to reach 650,000 tons per year by the mid-2030s. This represents a significant increase from the approximately 322,000 tons produced in the last financial year.
BHP’s copper operations in South Australia extend beyond Olympic Dam. The company also operates the Prominent Hill and Carrapateena underground mines, which supply copper concentrate to the Olympic Dam smelter and refinery complex. Furthermore, BHP is actively exploring the Oak Dam prospect, where it recently announced an inferred mineral resource of 1.34 billion tons at a copper grade of 0.66% and a gold grade of 0.33 grams per ton. This includes a higher-grade area containing 220 million tons of 1.96% copper and 0.68 grams per ton of gold.
This expansion of copper production is driven by BHP’s recognition of the growing importance of copper in the global energy transition. Copper is a critical resource for electric vehicles, renewable energy infrastructure, and various electronic applications. Despite anticipated short-term surplus, BHP forecasts copper pricing to move into a phase of durable outperformance, as stated in a recently published commodity outlook.
The final investment decision on the first phase of the smelter and refinery expansion is anticipated in the first half of the 2027 financial year. BHP shares are currently trading lower by 0.11% to $55.07 premarket.
BHP’s commitment to expanding its copper production in South Australia highlights the growing demand for this essential metal in a world transitioning to cleaner energy sources. This project could have significant economic benefits for the region, creating jobs and boosting the local economy.
