(Bloomberg) -- BHP Group Ltd. is moving ahead with a major expansion of the Olympic Dam copper smelter and refinery in South Australia, with permit applications now before the state government.
The world’s biggest miner aims to increase yearly output from 322,000 tons of cathode to 500,000 tons in the early 2030s, according to a statement on Friday, with a possible further boost to 650,000 tons also under consideration. It comes as BHP prepares for increased ore production from the region.
Global miners are ramping up efforts to develop copper resources as the metal is set to play a key role in the energy transition. While BHP cautioned this week that the market is in surplus at present, it expects rising demand to trigger a prolonged worldwide deficit later this decade, potentially boosting prices.
“We are already growing BHP’s copper production in South Australia, with projects and studies underway at all of our operating sites,” said Anna Wiley, asset president for the copper business in the state. “We’re moving at pace to potentially double our current production by the middle of the next decade.”
The project will include a new furnace, according to filings with the government. BHP will make a final investment decision on the expansion in 2027.
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