Four million tonnes of copper exported as Olympic Dam celebrates its 30-year milestone
AN ESTIMATED four million tonnes of copper has been exported to the world from SA’s biggest operating mine over the past three decades, unlocking billions in economic returns and shaping the state’s future.
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IT IS regarded as one of the world’s greatest mineral deposits. And three decades since after the day in June 1988 when Olympic Dam unearthed its first copper, SA’s biggest underground mine continues to unlock billions in economic returns to shape the state’s future.
About four million tonnes of SA copper has been exported globally in that time — enough to produce about a trillion smartphones and tablets or 50 million electric cars.
Owner BHP — which bought the mine 560km north of Adelaide in 2005 — is trying to quantify the total economic contribution to the state over that time, but it’s clear Olympic Dam has generated tens of billions of dollars in export revenue, taxes and royalties. Thousands of jobs have been created and, with more expansions on the cards, there is more to come.
BHP is this year marking 30 years of a growing operation — and the dogged pursuit of then owner Western Mining Corporation and its explorers to bring the project to fruition.
It was July 1975 when Ted Whenan used a surface drilling rig to search for copper near a muddy stock watering hole named Olympic Dam.
The Western Mining worker eventually found copper ore after passing through 350m of sedimentary rock, shale and sand. Later drilling found copper, uranium and rare metals further down.
Had he decided to set up his drill just a few paces further on in the scrub, the mine might not have been discovered.
A hunch, based on theoretical geological models, had produced the world’s biggest copper, uranium, gold and silver find, Mr Whenan told The Advertiser in a 1995 interview.
Olympic Dam’s first mine shaft, 500m deep, is named after Mr Whenan, who died in April 1998.
“It took us about three weeks to drill the first hole but we didn’t hit anything really promising. Later we found we were right in the middle of the find,” he said.
“It’s pretty thrilling to see what a find like that can lead to.”
It took another 13 years before copper was produced at the site, with the project one of the most controversial developments in the state’s political history.
Labor MLC Norm Foster crossed the floor of Parliament in 1982 to vote against his party and support an indenture bill allowing Roxby Downs to go ahead.
“Blind Freddy could have seen the great benefits in this mine for employment for South Australians,” Mr Foster told The Advertiser in 1998on the 10th anniversary of the mining operation.
Meanwhile, a struggling sheep station in the red-sand wilderness was transforming into Roxby Downs.
An oasis for a young community with an average age of 27, it was for a time the town with Australia’s highest annual birthrate.
BHP bought the project in 2005 and announced plans to expand the mine. However, by 2012, ambitious plans to invest billions of dollars on an open-pit operation were abandoned, leading to widespread public and political disappointment.
It was replaced by a more staged expansion of the underground mine, with a goal to lift production to 450,000 tonnes of copper by 2024.
Today Olympic Dam directly employs 3500 people in South Australia and supports thousands more jobs through its contractors and suppliers.
There will be a change of reins with Laura Tyler coming in as head of Olympic Dam operations on July 1, replacing Jacqui McGill. BHP is spending $600 million on underground infrastructure and above-ground processing operations. Research work is under way on using heap leach technology, which may enable BHP to expand production to more than 450,000 tonnes a year — its 2024 target.
The FY18 production will be about 135,000 tonnes following a planned major smelter maintenance campaign.
BHP president operations, minerals Australia Mike Henry said, “We are very pleased that this operation, with its unique resource and options for growth, continues to provide thousands of jobs and investment in the state.
“We look forward to celebrating this milestone with our people and the wider Roxby Downs and SA community.”
Early settlers here to stay
KATHY Ehrig remembers her early days in Roxby Downs in 1992 like it was yesterday.
“There was a lot of smiling and nodding. You didn’t know too many of the thousands of people on site, but everyone knew you. I was only one of two Americans on site getting used to the Aussie accent and culture,” she says.
US-born Ms Ehrig, a 31 year old metallurgy student with a passion for geology, refused 12 other job offers to make SA’s remote outback home in 1992 after being head hunted by WMC.
“There was no internet, but there were reports in scientific journals about OD. It was one of the only deposits of its kind — and a great opportunity for me to work where I wanted and my desire to come to Australia.”
“Olympic Dam was different back then. We used to know the drillers by their missing fingers.”
Now an industry leader, Ms Ehrig says her work as superintendent geometallurgy in Olympic Dam’s Geoscience and Resource Engineering team.continues to be exciting as the mine looks for newer, safer ways to operate.
“I’ll stay working here as long as it is interesting and I can add value.”
Laurie Benson, a senior specialist in the casting area (smelter) of the mine, has always loved the community feeling of Roxby Downs.
“When I came in 1988, the town was just a dirt road. There were people from different country areas. It was great because at the time there was a feeling of embarking on a journey where we didn’t know what to expect.
“It was a hard grind, but we problem-solved and kept the show up and running.
“When I look back at what this mine has done for the state, the inclusiveness and diversity of the operation, I feel very proud.”
SA Energy Minister Dan van Holst Pellekaan was pleased the operation was set for more growth after the start of production from its massive southern mining area where more than 70 per cent of the resource is located.
“Having been associated with Olympic Dam since the late 80s I have learned a great deal about the challenges of mining a multi-mineral ore body and operating a complex mineral processing plant,” he said.
COPPER TRAIL
4M tonnes of copper = 1 trillion smartphones and tablets / 400bn white goods / 12bn PCs and laptops / 50m electric cars.
Key Dates
1975 Olympic Dam discovered by WMC
1979 WMC forms joint venture with BP
1982 — Roxby Downs (Indenture Ratification) Act 1982 passed. The legislation is still in place today.
1988 (June) OD produces first ore. (November) OD & Roxby Downs opened.
2005 BHP buys OD, plans multi-billion dollar expansion.
2012 Open-pit expansion shelved.
2014 New staged expansion to lift copper production to 450,000 tonnes by 2024.
2017 First ore produced in Southern Mine Area.
FY2018 OD produces about 135,000 tonnes of copper, directly employs 3500 people in SA.
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