EPCM contract awarded for BHP copper facilities expansion in SA

BHP’s proposed expansion of its copper smelter and refinery facilities in South Australia is progressing towards construction with the awarding of an engineering, procurement and construction management (EPCM) contract to a joint venture between Fluor Australia Pty Ltd and Hatch Pty Ltd. 

This EPCM contract will be executed in stages as BHP moves towards final investment decision on the expansion project in the first half of 2027 financial year. 

“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,” Fluor Pty Ltd President of Mining and Metals Harish Jammula 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,” Hatch Pty Ltd Global Managing Director – Metals Tina Armstrong said. 

Stage one of the EPCM package represents more than $40 million in funding that will lead the overall project strategy and planning phases. 

The awarding of the EPCM contract follows extensive engagement with BHP’s major projects, procurement, commercial and Copper SA teams. 

The first phase of the expansion project will involve upgrading the existing smelter and refinery at Olympic Dam to a two-stage smelter and extension of refinery facilities with capacity to produce over 500,000 tonnes a 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. 

“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,” BHP Group Procurement Officer Rashpal Bhatti said. 

Last year, BHP outlined a pathway to increase copper production at its South Australia operations to over 500,000 tonnes of refined copper cathode annually by the early 2030s as well as a strategy to deliver about 650,000 tonnes from mid-2030s. 

The global demand for copper is projected to increase by around 70 per cent by 2050. This increase is driven by ongoing growth in traditional copper uses such as the construction of houses and manufacture of household appliances, the global transition to electric vehicles and renewable energy, and growth in data centres. 

“BHP is building momentum in South Australia, and this is another step forward in our strategy to increase 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,” BHP Asset President Copper SA Anna Wiley said. 

Source: BHP; Australian Mining