BHP has awarded an engineering, procurement and construction management (EPCM) contract to a joint venture between Fluor Australia and Hatch, to support the proposed expansion of its copper smelter and refinery facilities in South Australia.

The contract will be executed in stages as BHP progresses towards a final investment decision on the smelter and refinery expansion in the first half of FY2027, and through to subsequent construction. The first stage of EPCM activity represents more than $40 million of investment and would involve an upgrade of the existing smelter and refinery at Olympic Dam, to a two-stage smelter; and extension of refinery facilities with capacity to produce more than 500,000 metric tonnes per year.

Global copper demand is forecast to increase by around 70% by 2050, driven by ongoing growth in traditional copper uses such as house construction and household appliances, the global transition to electric vehicles and renewable energy, and growth in data centres.

Last year, BHP outlined a pathway to increase copper production in South Australia to more than 500,000 metric tonnes of refined copper cathode a year by the early 2030s, and a strategy to deliver up to 650,000 metric tonnes from the mid-2030s – up from 322,000 metric tonnes last financial 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,” said Rashpal Bhatti, Group Procurement Officer, BHP.

“Accelerated expansion of the downstream processing sector is increasingly important to secure local supply of mined materials, to become independent of overseas supply and to drive sustainable production technologies,” said Harish Jammula, President of Mining & Metals, Fluor.