Global mining giant BHP Ltd (ASX: BHP) has announced $840 million in growth projects at the massive Olympic Dam copper, gold, and uranium mine in South Australia.
The company, which derived 45% of its underlying earnings from copper last financial year, on Wednesday said several new projects would be funded.
These included a new tunnel into the Southern Mine Area to access a new part of the deposit, a new backfill system, and an expansion of the ore handling capacity "supported by new locomotives and an extended underground electric rail network''.
A new oxygen plant to improve smelter performance and support increased copper processing would also be installed.
The company said on Wednesday:
Together, these projects and those underway elsewhere across Copper SA will improve efficiency and support future growth options of South Australia's copper province, reinforcing the state's role as a globally significant supplier.
The Southern Mine area tunnel project was expected to create 200 new construction jobs alone.
BHP Chief Operating Officer Edgar Basto said BHP was focused on boosting its copper output.
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. 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. The South Australian copper province is already performing strongly, consistently delivering more than 300,000 tonnes a year for the past three years. We are progressing a series of strategic projects that will strengthen our base business and help lay the foundations for future growth.
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BHP a multi-asset producer
BHP owns the Olympic Dam project in South Australia – the largest polymetallic deposit of its kind in the world – as well as the Carrapateena and Prominent Hill copper and gold mines, which it acquired through its buyout of OZ Minerals in 2023.
The company is also working to prove up the Oak Dam deposit in the region; however, at this stage, it has not announced firm plans to develop that project.
Copper stocks have been performing well over the past week, following New York Stock Exchange-listed Freeport-McMoran Inc (NYSE: FCX) announcing last week that mining at its Grasberg Block Cave mine in Indonesia would be on hold indefinitely.
At least two people were confirmed dead in a mudslide at the Grasberg mine, and Freeport stated that the mining stoppage would result in a 4% decline in its copper sales for the third quarter of 2025 and a 6% decline in its gold output.
Copper futures spiked more than 4% on the news last week, and companies such as Capstone Copper Corp (ASX: CSC) and Sandfire Resources Ltd (ASX: SFR) have experienced solid share price gains.
