BHP is spending more than A$840 million in a chain of growth-facilitating projects at Olympic Dam, to deepen the pillars of underground mining productivity and keep constructing its world-class copper province in the remote north of South Australia.
The investment is paying for a number of priority projects:
- An underground access tunnel (a decline) into the Southern Mine Area, which will open access to a new part of the resource.
- A new backfill system to transport paste fill through underground pipes to new portions of the mine.
- Increase in ore pass capacity, optimizing ore handling and minimizing haulage distance, complemented by new locomotives and an expanded underground electric rail network.
- Installation of a new oxygen plant to enhance smelter performance and enable expanded copper processing capacity.
Combined, these projects and those in progress elsewhere throughout Copper SA will enhance efficiency and enable future growth opportunities of South Australia’s copper province, securing the state as an internationally important supplier.
The Southern Mine Area decline will enhance access to the underground mine and simplify the material and equipment transport. The project is likely to generate close to 200 construction employment opportunities during the development of the project.
A new cement paste fill backfill delivery system will enhance the stabilization of mined areas. The system will transport cement paste fill through a network of underground pipes and thereby facilitate access to previously inaccessible ore sections.
Olympic Dam is enlarging its underground electric rail system from 4.85 kilometres to over 6 kilometres, supplemented by 6 new locomotives. The ore pass capacity project will improve materials handling in the Southern Mine Area, minimizing truck haulage and enhancing safety and efficiency.
The new oxygen plant will assist in the debottlenecking program of the smelter, with copper concentrate smelting rates lifted from 80 to 85 tonnes an hour. Oxygen is a central ingredient in the smelting process, assisting in separating and stripping out the sulphur and iron impurities to create blister copper at 99% purity. The same is then cast into copper anodes and refined into finished products such as copper cathode, gold, and silver.
“BHP is the world’s largest copper producer, and we anticipate expanding our copper base to 1.7 million tonnes up to about 2.5 million tonnes a year. To achieve that scale, there needs to be substantial copper growth, and we are lucky to have a world-class copper province right here in South Australia to do so.”
The South Australian copper province has already been performing well, consistently producing over 300,000 tonnes annually for the last three years. We are advancing a slate of strategic projects that will enhance our base business and support the foundations for future growth.”
Anna Wiley, BHP Asset President Copper SA
“Copper SA is a province of international importance, and ongoing investment by BHP is an unequivocal indication of our long-term commitment to developing it. Such investments secure foundations for growth in the future – generating employment, creating local business opportunities, and improving operational efficiency across our operations.”
“We are on the cusp of a generation of opportunity to unlock transformative copper growth in South Australia. Through continued collaboration across government and industry, we can seize that opportunity and realise our collective aspiration to grow more Australian copper.”
“Copper SA is already on the world map, and as the competition grows to obtain copper for the energy transition and data centre growth, we are well set to provide more of what the world requires.”
“BHP has been a pillar of South Australia’s economy for generations, underpinning thousands of jobs and local businesses that provide materials to their operations, and this investment in Copper SA’s future is an indication that it will remain so for years to come.”
“With Australia leading the energy transition, where copper is a crucial component, BHP is guaranteeing South Australia’s place as a leading global supplier by securing the ongoing supply of copper from Olympic Dam,”
There can be no zero-emissions future without secure, available supplies of high-quality copper. Copper is central to the electrification of transport fleets, to the construction of renewable energy infrastructure, and to the generation, distribution, and storage of energy.
“South Australia is the epicentre of copper. BHP understands that, which is why it’s spending billions of dollars in South Australia, to unlock the next giant copper opportunity – and it begins with vastly expanding Olympic Dam.”
“The vision more generally across the Copper province is evident – doubling existing production, enabling thousands of new jobs, and building a two-stage smelter.”.
“To get there, we’ll need more water, which is why the State Government is working in close partnership with BHP to closely examine the Northern Water Project.
About Copper SA
BHP’s Copper SA asset is a global-class copper province located in the remote north of South Australia. Olympic Dam, Prominent Hill, and Carrapateena have three underground mines at Olympic Dam, which produce ore for a centralised smelter and refinery at Olympic Dam. There is also an exploration project at Oak Dam, which might be a prospective fourth mine in the province.
Copper SA employs around 8,000 individuals (onsite contractors included) and produced 316,000 tonnes of copper in the last financial year. The world requires more copper, with global demand predicted to increase 70% by 2050 due to population growth, increasing living standards, and the shift towards renewable energy. This is a generational opportunity for South Australia, where two-thirds of Australia’s copper resources – some of the best copper resources globally – are located.
BHP has the world’s largest copper resources in Escondida and Copper SA. In FY25, BHP produced over two million tonnes of copper for the first time.
