BHP has locked in a major contract to support the proposed expansion of its copper smelter and refinery facilities in South Australia.
The engineering, procurement and construction management (EPCM) contract was delivered late last week to a joint venture between engineering and construction company Fluor Australia and engineering consultant Hatch.
The $40 million contract will be executed in stages as BHP progresses towards a final investment decision on the smelter and refinery expansion in the first half of the 2026–27 financial year (FY27), and through to subsequent construction.
“BHP is building momentum in South Australia, and this is another step forward in our strategy to increase the production of SA’s high-quality copper resources to support the global energy transition,” BHP Copper SA asset president Anna Wiley said.
“BHP has established a world-scale copper province in South Australia and we are working at pace to progress our plans to lift production further over the coming decade.”
According to BHP, global copper demand is forecast to increase by around 70 per cent by 2050, driven by ongoing growth in traditional copper uses such as house construction and household appliances, the global transition to electric vehicles and renewable energy, and growth in data centres.
Last year, BHP outlined a pathway to increase copper production in SA to more than 500,000 tonnes (t) of refined copper cathode a year by the early 2030s, and a strategy to deliver up to 650,000t from the mid-2030s – up from around 322,000t last financial year.
“Fluor and Hatch are experienced global EPCM partners with significant shared experience in delivering mega projects, who will bring the right level of scale and expertise to help BHP progress its copper growth plans in South Australia,” BHP group procurement officer Rashpal Bhatti said.
“The growth potential for Copper SA is exciting and this first stage of EPCM works will be key as we progress the proposal for an expanded copper smelter and refinery at the heart of South Australia’s growing copper province towards a final investment decision.”
“It is critical that we prudently manage our spending to achieve the vision that BHP shares with many others to grow copper production in South Australia, and we have worked closely with Fluor and Hatch on a contract structure that supports this.”
Phase one of the increased copper production project would involve an upgrade of the existing smelter and refinery at Olympic Dam, to a two-stage smelter and extension of refinery facilities with capacity to produce more than 500,000t per year.
“Hatch is delighted to be partnering with BHP to support its Copper South Australia growth plans,” Hatch global managing director – metals Tina Armstrong said.
“Together with Fluor, we look forward to working closely and collaboratively with the Copper South Australia team.”
Flour mining and metals president Harish Jammula said the company will support BHP on its plans to increase production of refined copper cathode in SA.
“Accelerated expansion of the downstream processing sector is increasingly important to secure local supply of mined materials, become independent of overseas supply and drive sustainable production technologies,” Jammula said.