BHP has awarded a significant engineering, procurement, and construction management (EPCM) contract to a joint venture between Fluor Australia Pty Ltd and Hatch Pty Ltd. The contract supports the proposed expansion of BHP's copper smelter and refinery facilities in South Australia, a step towards company's ambitious plan to boost copper production.

The contract, valued at over AUD 40 million for its initial phase, will be executed in stages, aligning with BHP's progress towards a final investment decision (FID) on the smelter and refinery expansion, currently anticipated in the first half of FY27. The initial stage focuses on strategic planning and development during the project's study phases. Subsequent stages will cover detailed engineering, procurement, and construction management as the project advances.

BHP's move is driven by the rapidly growing global demand for copper, projected to increase by approximately 70% by 2050. This surge is fueled by traditional applications, the global shift to electric vehicles and renewable energy, and the expanding need for data centers.

BHP has outlined a clear roadmap to significantly increase copper production in South Australia. The company aims to produce more than 500,000 tonnes of refined copper cathode annually by the early 2030s and potentially reach 650,000 tonnes by the mid-2030s, a substantial increase from approximately 322,000 tonnes in the last financial year.

Phase one of the expansion involves a significant upgrade to the existing smelter and refinery at Olympic Dam. This includes a transition to a two-stage smelter and an extension of refinery facilities, ultimately boosting capacity to over 500,000 tonnes per year. The FID for this crucial first phase is slated for the first half of FY27.

Rashpal Bhatti, Group Procurement Officer at BHP, emphasized the importance of the partnership with Fluor and Hatch. "Fluor and Hatch are experienced global EPCM partners with significant shared experience in delivering mega projects," Bhatti stated. "They bring the right level of scale and expertise to help BHP progress its copper growth plans in South Australia." He also highlighted the importance of prudent spending and the collaborative contract structure designed to achieve BHP's vision for copper production growth in the region.

Harish Jammula, President of Mining & Metals at Fluor, said, "We are excited to support BHP on their growth plans to increase production of refined copper cathode in South Australia." He also noted the increasing importance of downstream processing to secure local supply and drive sustainable production.

Tina Armstrong, Global Managing Director – Metals at Hatch, echoed this sentiment, stating, "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."