SMM2 18-BHP Billiton's desire to significantly increase (Olympic Dam) copper production at the Olympic Dam has been recognized by the South Australian government, which has a major development status.
BHP Billiton is conducting growth studies for expansion projects and will seek board approval for a capital account in mid-and late 2020.
However, South Australia's announcement is an important milestone for BHP, which believes the investment in the project could be as high as $3 billion.
This is the first step in a state and federal process that includes assessing the potential social economic and environmental impacts associated with increased mining and production at the site.
Laura Tyler, president of Olympic Dam assets, said BHP's goal is to achieve stable operation and sustainable growth of the mine in the long run in a phased and capital-efficient manner. The Olympic Dam is a world-class resource that has the potential to bring value to BHP Billiton and South Australia in the coming decades, especially given our optimistic outlook for global copper demand.
BHP Billiton said it was pleased that the South Australian government announced that the development plan for the Olympic Dam was a major development and recognized our importance to the country. The team continued to refine the scope of objectives for underground development in the southern mining area, strategically invested ground treatment facilities, new technologies and supporting infrastructure.
The plan to expand the Olympic dam will be the latest in a series of BHP projects in the region in recent years.
In fiscal 2018, BHP invested more than $600m in its copper business, mainly in underground infrastructure and ground processing.
In December 2018, BHP Billiton launched the operation of an underground slope, improving the supply of high-grade copper in the southern mining area.
Dan van Holst Pellekaan, South Australia's energy and mining minister, said the latest $3 billion expansion plan could create up to 1800 construction jobs and another 600 operating jobs.
The Olympic Dam is already the state's largest mining company, providing jobs, investment and royalties for South Australia.
BHP produced 65000 tons of copper at the Olympic dam in the second half of last year, up 20 per cent from previous smelter maintenance activities.
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