BHP has awarded an engineering, procurement and construction management (EPCM) contract to a joint venture between Fluor Australia Pty Ltd and Hatch Pty Ltd, 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 on the smelter and refinery expansion in the first half of FY27, and through to subsequent construction.
The first stage of EPCM activity represents more than $40 million (AUD) 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.
Copper SA growth outlook
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 South Australia to more than 500,000 tonnes of refined copper cathode a year by the early 2030s, and a strategy to deliver up to 650,000 tonnes from the mid-2030s – up from ~322,000 tonnes last financial year.
Phase one 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 500,000 tonnes per year.
A final investment decision on phase one of the smelter and refinery expansion is currently expected in the first half of FY27.
Rashpal Bhatti, Group Procurement Officer, BHP
"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."
"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."
Anna Wiley, Asset President Copper SA, BHP
"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 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."
Harish Jammula, President of Mining & Metals, Fluor Pty Ltd
"We are excited to support BHP on their growth plans to increase production of refined copper cathode in South Australia.
"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."
Tina Armstrong, Global Managing Director – Metals, Hatch Pty Ltd
"Hatch is delighted to be partnering with BHP to support its Copper South Australia growth plans.
"Together with Fluor, we look forward to working closely and collaboratively with the Copper South Australia team."
