BHP to Inject $555M to Ramp Up Copper Production in Australia

This past week, BHP announced its plan to invest over $555.1 million dollars in its Olympic Dam project. The project is located in the province of South Australia, on the traditional lands of the Arabana, Dieri, and Kokatha people. This province has 3 underground mines in Carrapateena, Prominent Hill, and Olympic Dam. 

BHP also operates an exploration project at Oak Dam, which could become the province’s fourth mine in the future. Olympic Dam holds one of the biggest deposits of copper, gold and uranium in the world, making it a major operation for the firm. 

In its announcement, the mining firm explained that this project would enhance operational efficiency and enable future growth prospects within the copper industry in South Australia. Its latest investment is expected to generate around 200 construction roles, strengthening the country’s standing as a leading global producer of copper. 

The funds will be directed towards the completion of an underground access tunnel into a mine area in the south of these operations, allowing access to a new section of the copper resource. They will also facilitate the installation of a new oxygen plant, which is expected to increase smelting rates for copper concentrate to 85 tons per hour. This will, in turn, support increased ability to process the red metal. 

Oxygen plays a crucial role in the smelting process as it helps separate and eliminate the iron and sulfur impurities from copper. 

Additionally, BHP plans to install a new backfill system that’ll deliver paste fill through underground pipes to different areas of the mine. Furthermore, these funds will improve ore transfer efficiency and minimize transport distances, supported by an upgraded underground electric rail system and six new locomotives. 

BHP plans to expand the rail system on the project to over 6km, from its current 4.8km. These changes come as the major miner works towards doubling output from the project. Over the last 3 years, the Olympic Dam project has produced over 300,000 metric tons of copper every year. In the last financial year, total output from the project stood at 316,000 tons of copper. 

By the mid-2030s, BHP hopes to be producing 650,000 tons of copper annually from this project. As the biggest copper producer globally, the company plans to grow its red metal base to roughly 2.5 million tons annually, from its current 1.7 million tons. The company plans to reach a final investment decision on a smelter and refinery expansion at this operation by 2027. 

The prospects of future copper supplies look bright given that in other regions around the world, entities like Aston Bay Holdings Ltd. (TSX.V: BAY) (OTCQB: ATBHF) are also advancing their copper exploration projects and extraction could start in the years to come. 

NOTE TO INVESTORS: The latest news and updates relating to Aston Bay Holdings Ltd. (TSX.V: BAY) (OTCQB: ATBHF) are available in the company’s newsroom at https://ibn.fm/ATBHF 

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