BHP has awarded a joint venture of Fluor Australia and Hatch the engineering, procurement and construction management (EPCM) for the proposed expansion of the company’s copper smelter and refinery facilities in south Australia.
The contract will be carried out in phases as BHP moves towards a final investment decision (FID) for the expansion, which is expected in the first half of 2027 (H1 2027).
The project will continue through to the subsequent construction phase following the FID.
Fluor president of mining & metals Harish Jammula said: “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.”
The first stage of EPCM activity involves an investment of more than A$40m ($24.9m) to guide strategy and planning through the project’s study phases.
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By GlobalDataHatch Global managing director metals Tina Armstrong said: “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.”
This contract award comes after thorough collaboration with BHP’s major projects, procurement, commercial and Copper SA teams.
Phase one of the expansion project involves upgrading the current smelter and refinery at Olympic Dam to a two-stage smelter, as well as expanding refinery facilities to a capacity capable of producing more than 500,000 tonnes per annum (tpa).
BHP group procurement officer Rashpal Bhatti said: “Fluor and Hatch are experienced global EPCM partners with significant shared experience in delivering megaprojects, 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.”
Copper demand is forecast to increase globally by approximately 70% by 2050.
This growth is fuelled by traditional uses such as house construction and household appliances, the shift towards electric vehicles and renewable energy, and expansion of data centres.
Last year, BHP outlined a plan to boost copper production in South Australia to more than 500,000 tonnes (t) of refined copper cathode per year by the early 2030s.
The strategy aims to deliver up to 650,000t from the mid-2030s, up from approximately 322,000t in the last financial year.
