BHP invests $840m in Olympic Dam

BHP (ASX: BHP) is investing in a series of growth-enabling projects at Olympic Dam in a move to strengthen the foundations of underground mining productivity.

According to BHP chief operating officer Edgar Basto, the miner expects to grow its copper base from 1.7mtpa to about 2.5mtpa.

“Achieving that scale requires significant copper growth and we are fortunate to have a world-class copper province right here in South Australia to do just that,” Mr Basto said.

“The South Australian copper province is already performing strongly, consistently delivering more than 300,000tpa for the past three years. We are progressing a series of strategic projects that will strengthen our base business and help lay the foundations for future growth.”

The investment is funding numerous projects, including a new decline, backfill delivery system, an expanded underground electric rail network supporting an ore pass capacity project and a new oxygen plant.

The new decline in the Southern Mine Area, providing access to a new section of the resource. Additionally, a new backfill system will be funded to deliver paste fill via underground pipes to new areas of the mine.

The Southern Mine Area decline will improve access to the underground mine and streamline the transportation of materials and equipment. The project is expected to create nearly 200 construction jobs throughout the project development.

The new backfill delivery system will improve how mined areas are stabilised. The system will deliver cement paste fill directly through an underground pipe network, allowing access to previously inaccessible ore sections.

Olympic Dam is expanding its underground electric rail network from 4.85 kilometres to more than 6 kilometres, supported by 6 new locomotives. The ore pass capacity project will streamline materials handling in the Southern Mine Area, reducing truck haulage and improving safety and efficiency.

Additionally, a new oxygen plant will support the smelter’s debottlenecking program, increasing copper concentrate smelting rates from 80 to 85t/hr.

BHP asset president Copper SA Anna Wiley says the asset is a globally significant province and continued investment is a clear signal of the miner’s long-term commitment to its development.

“We are standing at the edge of a generational opportunity to unlock transformational copper growth in South Australia,” she said.

“By continuing to work together across government and industry, we can capture that opportunity and achieve our shared vision to increase Australian copper production.

“Copper SA is already on the global map, and as the race intensifies to secure copper for the energy transition and growth in data centres, we are well positioned to supply more of what the world needs.”

South Australia Premier Peter Malinauskas says the ambition more broadly in the Copper province is clear — doubling current production, supporting thousands of new jobs and developing a two-stage smelter.

“To get there, we’ll need more water, which is why the [South Australia] Government is working in close partnership with BHP to closely examine the Northern Water Project.”