The Olympic Dam mine in South Australia. Source: BHP
BHP has provided an update on the progress of its Olympic Dam expansion, with a maintenance campaign to occur two years from now.
BHP chief financial officer Vanita Pant said the company remained committed to growing production in the state despite a reshuffle of spending plans.
“Our aspiration to double copper production out of copper South Australia remains unchanged,” Pant said. “What we have done is a minor re-sequencing of capital and construction to accommodate a smelter maintenance campaign in 2027.
“Following that, we would then take a final investment decision on the first phase of our major smelter and refinery expansion.”
Pant said consistency of policy would be essential to making the expansion a success and is what would give the company confidence to put billions of dollars of capital to work for the long term.
BHP chief executive Mike Henry highlighted copper’s central role in BHP’s performance and outlook.
“We’ve made so much progress in recent years, and copper today accounts for 45 per cent of the underlying profit of the company,” he said.
“South Australia has some of the best copper endowment in the world, and we think there’s still more to come. We’ve got a tremendous resource base there and strong opportunities to keep growing.”
BHP’s growth pipeline extends beyond Australia, with projects in Argentina and the United States. In Argentina, the company is part of the Vicuña joint venture, which combines the Josemaría and Filo del Sol deposits.
“Filo del Sol is one of the biggest copper discoveries globally in the last 30 years,” he said. “We expect to have a development plan out in the first quarter of next year, and we’re also working with government on the RIGI bill which, if passed, will help make that project become even more attractive.”
The RIGI scheme is an initiative by the Argentine Government designed to attract investment in industries such as mining.
The likes of Glencore and BHP are participating in the scheme, with eligible projects able to secure tax breaks and deductions, as well as a stability agreement over 30 years that cannot be repealed by future governments.
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