BHP awards EPCM contract for South Australia copper expansion
Diversified miner BHP has awarded an engineering, procurement and construction management (EPCM) contract to a joint venture between Fluor Australia and Hatch to support the proposed expansion of its copper smelter and refinery facilities in South Australia.
The contract will be executed in stages as BHP progresses towards a final investment decision (FID) on the smelter and refinery expansion in the first half of the 2027 financial year, and through to subsequent construction.
The first stage of EPCM activity represents more than A$40-million of investment to lead overall strategy and planning through the project’s study phases.
The contract award follows extensive engagement with BHP’s major projects, procurement, commercial and Copper SA teams.
Global copper demand is forecast to increase by about 70% 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 South Australia to more than 500 000 t/y of refined copper cathode by the early 2030s, and a strategy to deliver up to 650 000 t from the mid-2030s – up from about 322 000 t last financial year.
Phase 1 will 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 500 000 t/y.
A FID on Phase 1 of the smelter and refinery expansion is currently expected in the first half of the 2027 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,” said BHP procurement officer Rashpal Bhatti.
“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 an FID.”
“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,” added Bhatti.
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