Copper mining giant BHP is investing US$555 million (AUS$840 million) in several projects at its Olympic Dam copper operations in South Australia to boost production and processing capabilities at the site.
With the investment, BHP will fund an underground access tunnel into the Southern Mine Area, providing access to a new section of the resource, viewed as critical for global technology development and the energy transition. BHP’s investment will also fund a new backfill system to deliver paste fill via underground pipes to new areas of the mine, expand ore pass capacity, and install a new oxygen plant to improve smelter performance and support increased copper processing capability.
“BHP is the largest producer of copper in the world, and we expect to grow our copper base from 1.7 million tonnes to around 2.5 million tonnes per annum,” the mining giant’s chief operations officer, Edgar Basto, said in a statement on Wednesday.
“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.”
Australia’s Trade and Tourism Minister, Don Farrell, said,
“Australia is at the forefront of the energy transition in which copper is a vital resource and by securing the continued flow of copper from Olympic Dam, BHP is ensuring South Australia’s position as a key global supplier.”
BHP expects global copper demand to jump 70% by 2050 driven by population growth, rising living standards, and the energy transition.
The mining giant holds the world’s largest copper resources with Escondida in Chile and Copper SA in Australia. In the financial year 2025 ended June 30, BHP produced more than two million tons of copper for the first time. BHP’s copper production has increased by 28% over the past three years, the company said in its annual report in August.
By Tsvetana Paraskova for Oilprice.com
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