BHP's Copper Growth Plans Under Review by South Australian Government

Core Viewpoint - BHP Group is significantly expanding its copper production capabilities in South Australia, with plans to increase output from 322,000 tons in fiscal 2024 to over 500,000 tons by the early 2030s, and potentially reaching 650,000 tons by the mid-2030s [1][3]. Group 1: Expansion Plans and Production Goals - The South Australian government has initiated an assessment of BHP's planned Smelter and Refinery expansion (SRE) at Olympic Dam, which will be executed in two phases [1]. - A final investment decision on phase one of the SRE plan is scheduled for the first half of fiscal 2027, with the project expected to unlock around $1.5 billion in synergies [3]. - BHP's copper output rose 9% year over year to 1,865 kt in fiscal 2024, the highest in 15 years, driven by improved production at Spence and Carrapateena [6]. Group 2: Recent Acquisitions and Developments - Following the acquisition of OZL in May 2023, BHP established the Copper South Australia province, adding Prominent Hill and Carrapateena to its portfolio [2]. - At Oak Dam, BHP reported an Inferred Mineral Resource of 1.34 billion tons at a copper grade of 0.66% [4]. - BHP is investing in processing plant capacity at Carrapateena to boost throughput from the sub-level cave to 7 Mtpa, with plans to increase it up to 12 Mtpa [5]. Group 3: Future-Facing Commodities Strategy - BHP plans to allocate around 65% of its medium-term capital to future-facing commodities, such as copper and nickel, which are essential for the green energy transition [7]. - The company has also agreed to acquire a 50% interest in the Filo del Sol and Josemaria copper projects in Argentina to strengthen its copper resource position [7]. - In addition to South Australia, BHP has a pipeline of copper projects under development in Chile, with final investment decisions planned from fiscal 2026 to 2029 [8]. Group 4: North American Projects - BHP holds a 45% interest in the Resolution Copper Project in the United States, which is one of the largest undeveloped copper projects globally and has significant production potential [9].