Photo by: Bloomberg
PERTH (miningweekly.com) – Mining giant BHP’s expansion plan at its Olympic Dam project, in South Australia, has seen the project declared a major development by the state government.
The proposed $3-billion expansion will increase copper production at Olympic Dam by some 75%, from 200 000 t/y to 350 000 t/y, and will increase the level of gold, silver and uranium production at the mine.
“Declaring BHP’s proposed expansion of Olympic Dam a major development is a key milestone in this important project,” said Minister for Energy and Mining, Dan van Holst Pellekaan.
“Olympic Dam is already the state’s largest mining operation, providing jobs, investment and royalties for South Australia.
“BHP’s proposal could potentially create up to 1 800 construction jobs with an additional 600 ongoing positions in operational roles.”
Van Holst Pellekaan pointed out that to support the increased production BHP would increase its water usage from the Great Artesian basin by up to 50 megaliters a day; however, he noted that there would be a thorough assessment of the proposed development.
“This proposal will be subject to a rigorous scientific assessment to ensure maximum drawdown limits are scientifically determined and sustainable, and that other water users are not adversely impacted.
“There will also be extensive public consultation on the proposed expansion to make sure that communities have their say and there is transparency of the assessment of the project,” the Minister said.
BHP has welcomed the South Australian government’s major development declaration, saying it was an important step towards lifting its Australian copper production.
“BHP is aiming to achieve stable operations and sustainable growth at Olympic Dam through a staged and capital-efficient approach over the long term,” Laura Tyler, asset president for Olympic Dam, said.
“Olympic Dam is a world-class resource with the potential to deliver value to BHP and South Australia for many decades to come, especially given our positive outlook for global copper demand.
“We are pleased the South Australian government has declared Olympic Dam’s growth plans a major development, recognising our significance to the state.”
She said that the company was continuing to refine the scope for targeted underground development in the Southern Mine Area, strategic investment surface processing facilities, new technology and supporting infrastructure.
BHP would likely seek board approval for the project in mid- to late 2020.