BHP completes $350 million upgrade of smelter at Olympic Dam mine
BHP has completed a $350 million upgrade of its smelter at Olympic Dam, putting the resource giant on track to more than double its copper production by June.
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BHP has completed a $350 million upgrade of its smelter at Olympic Dam, putting the resource giant on track to more than double its copper production by June.
There will also be new investments to further expand the 30-year-old operation.
Marking the milestone at the mine site yesterday, Olympic Dam Asset president Jacqui McGill said that the investment had created a “foundation for the future”.
The underground mine, 600km north-west of Adelaide, is one of the world’s most significant deposits of copper, uranium, gold and silver.
The smelter shutdown and maintenance project began in August 2017, ran for over 100 days and created 3100 short-term jobs – almost as many as BHP’s existing 3500-strong mine workforce. BHP also upgraded other surface infrastructure, including the refinery, concentrator and other key infrastructure and site technology. The full ramp-up of the smelter is due to be completed by March and the company has hired 20 of the 120 workers it wants to find by November. Ms McGill has previously indicated a three-phased expansion.
The first phase exploration of the Southern Mine Area will increase production to 230,000 tonnes of copper by 2020.
The second $2.76 billion expansion phase will go before the BHP board for sign-off in mid-2020 and would take production to 330,000 tonnes by 2023. A third phase being planned could boost production to 450,000-500,000 tonnes of copper per year in the future.
The SA Government’s copper production target is 1 million tonnes by 2030. “I think it’s great to have an audacious goal,” Ms McGill said. “I think based on the resource wealth of this state, having an audacious goal is important and we are doing our bit.”
On the issue of energy security, BHP said it had pointed out to Premier Jay Weatherill and Mineral Resources Minister Tom Koutsantonis the investment it had made to protect its assets while also securing new power contracts to manage costs.
“We have protections in place to manage that risk if the blackout ever happens again,” Ms McGill said.
While a study into power options is being conducted, the company would continue to buy power off-grid and work with all federal and state stakeholders on ensuring stability of energy security for industry, she said.
The reporter travelled to Olympic Dam courtesy of BHP
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