BHP reveal almost $1bn investment at Olympic Dam to unlock Copper SA province
Mining giant BHP has revealed hundreds of millions of dollars will be poured into “transformational” copper expansion creating hundreds of jobs in the state’s Far North.
Almost $1bn will be poured into game-changing projects at the vast Olympic Dam mine, in the strongest signal yet of mining giant BHP’s commitment to a “transformational” copper expansion in the state’s Far North.
In a high-powered announcement, BHP executives were flanked by Premier Peter Malinauskas and three federal cabinet ministers as they unveiled the $840m plans, which include a huge new underground access tunnel and underground rail network extension.
The projects are branded as “growth-enabling” ahead of a 2027 decision on a two-stage copper smelter – the linchpin of a planned multibillion-dollar expansion to double annual copper production BHP’s three SA underground mines from 316,000 tonnes.
The $840m announcement, at Olympic Dam on Wednesday, follows the unveiling a week ago of a $105m, 1000-plus room expansion of mine village accommodation.
BHP Copper SA asset president Anna Wiley said the operation was “standing at the edge of a generational opportunity to unlock transformational copper growth in South Australia”.
“Copper SA is a globally significant province and BHP’s continued investment is a clear signal of our long-term commitment to its development,” she said.
The key projects include the underground access decline tunnel to unlock Olympic Dam’s massive Southern Mine Area, plus a new oxygen plant to boost smelter efficiencies.
The underground electric rail network will be extended from 4.85km to more than 6km, supported by six new locomotives, boosting copper ore transport capacity.
BHP’s Copper SA province has three underground mines feeding a central smelter and refinery at Olympic Dam.
The new projects also include opening up previously inaccessible ore sections with a new backfill delivery system, which boosts stabilising of mining areas by delivering cement paste directly through an underground pipe network
About 200 construction jobs are expected to created just for the Southern Mine Area tunnel project, which will improve access to the underground mining operation and streamline transport of materials and equipment.
The new oxygen plant will increase copper smelting rates from 80 to 85 tonnes per hour, because oxygen helps separate and remove sulphur and iron impurities to eventually result in almost perfectly pure copper.
BHP chief operating officer Edgar Basto said the firm, already the world’s largest copper producer, wanted to grow annual global production from 1.7m tonnes to 2.5m.
“Achieving that scale requires significant copper growth and we are fortunate to have a world-class copper province right here in South Australia to do just that,” he said.
Labelling the SA copper province a consistently strong performer, Mr Basto said BHP was “progressing a series of strategic projects that will strengthen our base business and help lay the foundations for future growth”.
About 8000 people work in the Copper SA operation, which has Olympic Dam, Prominent Hill and Carrapateena mines and a potential fourth being explored at Oak Dam.
Mr Malinauskas said BHP realised SA was “at the epicentre of copper”, so it was “investing billions of dollars … to unlock the next massive copper opportunity – and it starts with Olympic Dam”.
“To get there, we’ll need more water, which is why the state government is working in close partnership with BHP to closely examine the Northern Water Project,” he said.
A final investment decision on the Northern Water project, a 260 megalitre desalination plant and 600km pipeline network to SA’s north, is expected in the first half of 2026 after a major Environmental Impact Statement.
BHP in late August formally started an application and assessment process for the planned Olympic Dam smelter and refinery expansion, for which a final investment decision on phase one is scheduled for 2027.
The company has ambitions to make Olympic Dam one of the world’s largest copper smelters, by boosting Copper SA production to more than 500,000 tonnes of refined copper cathode per year by the early 2030s, and as much as 650,000 tonnes by the mid-2030s.
The reporter travelled courtesy of BHP.
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Originally published as BHP reveal almost $1bn investment at Olympic Dam to unlock Copper SA province
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