BHP's Olympic Dam Expansion Moves Forward, Aiming To Boost South Australia's Copper Output

BHP, the world's largest mining group, plans to expand its copper smelter and refinery at Olympic Dam in South Australia, with the application currently awaiting approval from the state government.

"We are already growing BHP's copper production in South Australia with projects and studies underway at all of our operating sites, and we're moving at pace to potentially double our current production by the middle of the next decade," Reuters quoted Anna Wiley, BHP Asset President Copper South Australia.

"Today's announcement is an important step for BHP and the South Australian Government as we work together towards our shared ambition to significantly increase copper production in this state," Wiley added.

Faced with challenges in the iron ore sector, BHP is expanding into copper production, signaling its shift toward green energy. Sale of iron ore, which is its main revenue source, has been affected after its leading customer China's economy has slowed down. A final decision on the investment will be made in 2027.

The miner expects to raise its annual output from 322,000 tons to 500,000 metric tons of cathode by the early 2030s and up to 650,000 by the mid-2030s.

Across the world, miners are expanding into copper resources, as the metal is a key contributor in energy transition, according to BNN Bloomberg.

Despite a surplus now, the rising demand for copper may create a deficit leading to higher prices in the coming years, BHP warned.

Prominent Hill and Carrapateena underground mines together supply copper concentrate to a centralized smelter and refinery complex at Olympic Dam, which produces refined copper cathode.

The company is also exploring the Oak Dam project. Earlier this week, BHP announced that they discovered 1.34 billion tonnes of rock containing 0.66% copper and 0.33 grams of gold per tonne at Oak Dam.