BHP is investing over A$840 million ($555 million) in a series of growth-enabling projects at Olympic Dam, in South Australia, to strengthen the foundations of underground mining productivity and continue building its world-class copper province in the far north of the state.
The investment is funding several key projects, including an underground decline into the Southern Mine Area, providing access to a new section of the resource; a new backfill system to deliver paste fill via underground pipes to new areas of the mine; expansion of ore pass capacity, streamlining ore handling and reducing haulage distances, supported by new locomotives and an extended underground electric rail network; and installation of a new oxygen plant to improve smelter performance and support increased copper processing capability.
Together, these projects and those underway elsewhere across Copper SA, part of BHP, will improve efficiency and support future growth options of South Australia’s copper province, reinforcing the state’s role as a globally significant supplier, BHP says.
The Southern Mine Area decline will improve access to the underground mine and streamline the transportation of materials and equipment. The project is expected to create nearly 200 construction jobs throughout the project development.
A new backfill delivery system will improve how mined areas are stabilised. The system will deliver cement paste fill directly through an underground pipe network, allowing access to previously inaccessible ore sections.
Olympic Dam is expanding its underground electric rail network from 4.85 km to more than 6 km, supported by six new locomotives. The ore pass capacity project will streamline materials handling in the Southern Mine Area, reducing truck haulage and improving safety and efficiency.
The new oxygen plant will support the smelter’s debottlenecking program, increasing copper concentrate smelting rates from 80 t/h to 85 t/h. Oxygen plays a key role in the smelting process, helping to separate and remove the sulphur and iron impurities to produce blister copper at 99% purity, BHP explains. This is then cast into copper anodes and refined into final products including copper cathode, gold, and silver.
Ore that is mined underground is hauled by an automated train system to crushing, storage and ore hoisting facilities, or trucked directly to the surface via declines, at Olympic Dam. The metallurgical complex consists of grinding, flotation and leach circuits, a hydrometallurgical plant incorporating solvent extraction circuits for copper and uranium, copper smelter, copper refinery and a recovery circuit for precious metals.
Edgar Basto, COO, BHP, said: “BHP is the largest producer of copper in the world, and we expect to grow our copper base from 1.7 Mt to around 2.5 Mt 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 t/y 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.”
Anna Wiley, BHP Asset President Copper SA, added: “Copper SA is a globally significant province, and BHP’s continued investment is a clear signal of our long-term commitment to its development. These investments strengthen the foundations for future growth – creating jobs, boosting local business opportunities, and driving greater operational efficiency across our sites.
“We are standing at the edge of a generational opportunity to unlock transformational copper growth in South Australia. By continuing to work together across government and industry, we can capture that opportunity and achieve our shared vision to increase Australian copper production.”
BHP’s Copper SA asset is, according to the mining company, a world-class copper province in the far north of South Australia. Copper SA has three underground mines at Olympic Dam, Prominent Hill and Carrapateena, which feed a centralised smelter and refinery at Olympic Dam. There is also an exploration project at Oak Dam, which could be a future fourth mine in the province.
