Olympic Dam expansion revealed in 2017 given major project status by State Government
Rebooted plans for a significant expansion of the Olympic Dam mine that could deliver more than 1800 jobs have taken a key step forward, gaining major project status to help expedite the development.
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Rebooted plans for a significant expansion of the Olympic Dam mine that could deliver more than 1800 jobs have taken a key step forward, gaining major project status to help expedite the development.
The $3 billion proposal is markedly different from the gargantuan expansion that was ultimately shelved in 2012, and uses new technology to achieve a near doubling of the mine’s annual production.
Energy and Mining Minister Dan van Holst Pellekaan said major-project status for the new Olympic Dam expansion was “a very important announcement” but “nobody should be jumping the gun”.
“We will look at this proposal in every way possible to determine if it is in SA’s best interests and, if it is, then this project can go ahead,” he said.
The $30 billion expansion proposed a decade ago by BHP became a key political focus for the former Labor government, which later conceded it “over-spruiked” the chance of success.
Mr van Holst Pellekaan said: “The previous government made a lot of mistakes — jumping the gun, letting off firecrackers and trying to sell projects before they were real.
“We will proceed through this very carefully, very sensibly.”
Major-project status is reserved for developments “of state economic, social or environmental significance”. It requires applicants to produce substantial documents that include environmental impact statements, to be examined by the State Commission Assessment Panel before approval.
The Government estimates 1800 jobs could be created in construction and 600 extra ongoing jobs added at the mine.
The proposal would increase Olympic Dam’s annual copper production from 200,000 tonnes to up to 350,000 tonnes and lift the level of gold, silver and uranium production. It is already the state’s largest mine.
BHP proposes to increase the use of water from the Great Artesian Basin to up to 50 megalitres a day.
The company welcomed the major-development status, stressing a “comprehensive” process must be followed before expansion.
BHP Olympic Dam asset president Laura Tyler said the company aimed to achieve “stable operations and sustainable growth” at the mine, with a “staged and capital-efficient approach over the long term”.
“Olympic Dam is a world-class resource with the potential to deliver value to BHP and SA for many decades to come, especially given our positive outlook for global copper demand,” Ms Tyler said.
“Our team continues to refine the scope for targeted underground development in the Southern Mine Area, strategic investment surface processing facilities, new technology and supporting infrastructure.
BHP continues to progress growth studies for Olympic Dam as it works towards seeking board approval for a capital project in mid-to-late 2020.”
Olympic Dam employs about 3500 people in SA. In the coming weeks, BHP expects to submit a formal application to the Government.
Opposition mining spokesman Tom Koutsantonis said the new proposal seemed “a good idea and I’m very glad that BHP are investing in SA”.
“I’m glad they are seeing it through,” he said. “I think BHP have done a lot more due diligence and hopefully it works for the state. We want it to.”
BHP’s chairman Ken MacKenzie told shareholders last year at the company’s annual meeting that Olympic Dam was a core asset and an opportunity to “move the needle on the whole company”.
“Olympic Dam is core. Olympic Dam is of BHP scale. It’s a terrific resource,” he said last November.
“Olympic Dam is an opportunity for us to move the needle on the company. We have a plan to move it forward.”
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