BHP (NYSE:BHP) has announced an investment of more than 840 million Australian dollars ($556 million) into growth-enabling copper projects at Olympic Dam in northern South Australia. The funding will expand mining access, upgrade smelting capacity, and reinforce the foundations of the company’s Copper SA operations.
“BHP is the largest producer of copper in the world, and we expect to grow our copper base from 1.7 million tons to around 2.5 million tons per annum,” Chief Operating Officer Edgar Basto said. “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.”
The capex package includes construction of a new underground decline into the Southern Mine Area, providing entry to deeper ore bodies and enabling more efficient material transport. Nearly 200 construction jobs are expected to be created during the development phase. A new cement paste backfill system will stabilize mined-out areas, unlocking previously inaccessible sections of ore.
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To increase the transport efficiency, BHP will extend the underground electric rail system from 4.85 kilometres to more than 6 kilometres, add six locomotives, and reduce truck haulage, improving safety.
The miner is also installing a new oxygen plant to boost its smelting operations. With the planned upgrade, the concentrate smelting rate is expected to rise from 80 to 85 tons per hour, increasing throughput and reducing impurities in the blister copper output. Once refined, the product will include copper cathode, gold, and silver.
BHP’s Copper SA division has consistently produced more than 300,000 tons annually in recent years, and last year’s output reached 316,000 tons. With this expansion, South Australia will reinforce its status on the map of the increasingly important global resource.
“Copper SA is a globally significant province, and BHP’s continued investment is a clear signal of our long-term commitment to its development,” Copper SA Asset President Anna Wiley said. “These investments strengthen the foundations for future growth – creating jobs, boosting local business opportunities, and driving greater operational efficiency across our sites.”
State leaders have welcomed the move. Premier Peter Malinauskas stated that copper is indispensable for decarbonization, describing Olympic Dam as a cornerstone of the energy transition. “There is no zero-emissions future without reliable, accessible supplies of high-quality copper,” he said.
The miner quoted a forecast for copper demand to rise 70% by 2050, driven by electrification, renewable energy, and data center growth. BHP’s projects aim to secure supply for this demand, while positioning Australia as a reliable exporter.
The copper push is both strategic and opportunistic. With China’s disagreements on iron ore imports, BHP’s copper expansion provides a hedge, fortifying the firm’s portfolio against shifting trade dynamics.
Price Action: BHP shares were trading higher by 0.72% to $56.15 premarket at last check Thursday.
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