South Australia in prime position as mining powerhouse
The state is in prime position to play host to nationally strategic infrastructure that delivers expanded downstream processing of the critical minerals needed for the energy transition.
South Australia is in prime position to play host to nationally strategic infrastructure that delivers expanded downstream processing of the critical minerals needed for the energy transition.
I’ve spent more than 30 years in the mining industry and worked all over the world, including running one of the world’s leading copper mines in Chile and BHP’s iron ore business in Western Australia.
In that time, I’ve seldom witnessed a more exciting opportunity than the one we see in South Australia through the potential to grow in copper.
The world is going to need a lot more copper to support increasing urban populations and the energy transition. As one data point, it takes up to four times more copper to build an electric vehicle than a normal combustion vehicle, and the 45 million EVs currently on the world’s roads could swell to more than 300 million in 2030.
Add to that all the solar panels, wind turbines and electrical wiring needed to build new networks, including to charge the EVs, and you can see why demand for copper is set to grow so significantly.
South Australia has some of the largest and best quality copper resources in the world, and growing copper production presents huge potential for the economy through major capital investment, well-paid jobs and supply chains.
Benefits will flow to regional communities including the Upper Spencer Gulf, through local supplier capacity building, and skills and training opportunities such as the Port Augusta Technical College.
BHP spent $2.7bn with suppliers in South Australia last financial year through “business as usual”, and we are increasing our spend with Indigenous-owned businesses.
BHP has owned and operated the Olympic Dam underground mine for over 20 years – itself one of the major global deposits of copper, uranium, gold and silver.
Last year, we added the Carrapateena and Prominent Hill mines to our portfolio.
By bringing these operations together, we have created a new copper province that we hope will bring the scale required to economically and sustainably mine and process additional copper in Australia and deliver it to global customers.
We’re also busy exploring for more copper at the Oak Dam prospect and in the area deep below Olympic Dam, as well as studying options to build a larger smelter and refinery complex at the heart of the province.
Our exploration projects and plans will require several years of study and planning before they can progress to a decision on the capital investment required to develop.
In doing this, our growth options in South Australia will need to compete against other opportunities elsewhere in Australia and around the world.
This is where the rubber hits the road. It will take collective effort to ensure the settings are right to encourage long-term investment in South Australia – efficient permitting that upholds high standards, a skilled workforce, a thriving METS sector and strategic enabling infrastructure – all underpinned by stable fiscal, policy and regulatory settings.
The South Australian government has been very supportive and understands the need to maintain the state’s reputation as a destination for capital.
The Northern Water Supply Project is an excellent example of government and industry working together to progress studies into a new source of water supply to the Upper Spencer Gulf and Far North, with the potential to benefit many businesses and industries in regional SA through a commercially viable, multi-user desalination plant and pipeline.
This project constitutes strategic infrastructure that would support expanded downstream processing in Australia of the critical minerals (like copper) needed for the energy transition.
There is a wonderful opportunity within our collective reach, but there is a lot still to be done in order to grasp it.
Edgar Basto is BHP’s chief operating officer
To join the conversation, please log in. Don't have an account? Register
Join the conversation, you are commenting as Logout