The Olympic Dam copper mine posted a full year loss, impacted by major smelter maintenance

BHP’s Olympic Dam mine in the state’s Far North has posted a loss for the full year, but the company says production is picking up sharply.

BHP’s Olympic Dam mine in the state’s Far North has booked a $US9m loss as a result of smelter maintenance work, as the broader group delivered a massive $US30.9bn annual profit.

The company’s full year report shows Olympic Dam, which produces, copper, gold, uranium and silver, posted a large fall from a $US214m profit the year before, on record copper production figures since BHP bought the asset in 2005, to a loss-making position in the most recent year to the end of June.

The company said production fell from a record 205,000 tonnes of copper in the previous year to 138,000 tonnes - a 38 per cent fall - as a result of a major smelter maintenance program which was completed in January this year.

A BHP worker at the Olympic Dam mine site in Roxby Downs.

Full year revenue fell from $US2.2bn to $US1.8bn.

However production at the mine is expected to return to around record levels this year, with BHP forecasting copper output at 195,000-215,000 tonnes.

“Near-record production in the June 2022 quarter followed the successful ramp up of the smelter to full capacity in April 2022,’’ BHP said in a statement to the Australian Securities Exchange.

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BHP recently launched an $8.4bn takeover bid for fellow copper miner OZ Minerals, with the Adelaide-based company rejecting the $25 per share offer as too low.

If the bid is eventually successful, it would pave the way for a tie up of Olympic Dam and OZ’s two copper and gold mines - Prominent Hill and Carrapateena.

It would also arguably smooth the path for the accelerated development of Oak Dam – BHP’s major copper discovery - which is located just 30km from the Carrapateena mine.

BHP said it currently had six drill rigs operating at Oak Dam, up from two initially.

“This program is focused on resource definition and potential development pathways,’’ BHP said on Tuesday.

It is understood that by the end of this financial year, about 150 people will be working on site at Oak Dam.

The mining giant’s net profit was boosted by a $US7.3bn gain delivered through the merger of its oil and gas assets with Woodside, and a $US9.3bn turnaround in the results from its Queensland coal operations.

BHP declared a $US1.75 final dividend, down from $US2 the previous year. Overall, BHP paid $US3.25 per share in dividends in the past financial year, up from $US3.01.