Another step forward in BHP’s South Australian growth plans with award of design and supply contract

BHP has awarded a design and supply contract to China Nerin Engineering Co. Ltd (Nerin) for key processing facilities as part of the proposed smelter and refinery expansion project in South Australia.

Nerin is one of China’s leading metallurgical engineering design institutes and has experience working on smelting complexes around the world, including the construction of seven large modern copper smelters in recent years.

The contract, valued at over AUD$200 million, will be executed in separate stages as BHP advances through study phases and toward a potential final investment decision on the smelter and refinery expansion in CY2027. The supply portion of the agreement is contingent upon BHP approving the final investment decision on the smelter and refinery expansion.

Olympic Dam’s smelter and refinery complex is at the heart of South Australia’s copper province, and the expansion project would support BHP’s ambition to grow production out of South Australia to 500 ktpa through the 2030s, and potentially up to 650 ktpa by the end of the decade.

BHP already has more than AUD$2 billion of projects in execution today to build the Copper SA province, including a 1.3-kilometre deep haul shaft at Prominent Hill and the new Southern Mine Area underground access tunnel at Olympic Dam.

Anna Wiley, Asset President Copper South Australia, BHP

“BHP is building momentum in South Australia, and this contract award marks another important step in our plans to increase copper production here.

“Copper South Australia is a globally significant province and we are working at pace to unlock its full potential and supply more of the copper the world needs.”

Rashpal Bhatti, Group Procurement Officer, BHP

“Partnering with Nerin reflects our focus on building a globally connected supply chain to support Copper South Australia’s growth. Nerin brings the scale and technical expertise to progress complex smelting and refining solutions.”

“As demand for copper intensifies, partnerships like this enable us to access innovation across key markets and support reliable project delivery.”

 Adrian Wood, Vice President Projects Minerals Australia, BHP 

“As BHP looks to execute the major projects that form part of its Copper SA growth plans, it will be critical for us to work with the right partners, both locally and across the globe.

“This partnership with Nerin positions us well to advance the design and optimisation studies for our smelter and refinery upgrade.”

Mr Wu Runhua, Chairman, China Nerin Engineering Co. Ltd

“We are proud to be selected to support BHP’s Smelter and Refinery Expansion studies in South Australia and to apply our experience delivering large-scale copper smelting and refining facilities around the world.”

“We look forward to working closely with BHP and its partners to provide a capital-efficient and high-performing design and supply solution as the project progresses.”

About Copper SA

BHP’s Copper SA asset is a world-class copper province in the far north of South Australia. Copper SA has three underground mines at Olympic Dam, Prominent Hill and Carrapateena, that feed a centralised smelter and refinery at Olympic Dam, and an exploration project at Oak Dam.  

Copper SA has a workforce of ~8,000 people and in FY25 produced ~316,000 tonnes of copper. The world needs more copper, with global demand projected to grow 70% by 2050 driven by traditional uses, the energy transition and digitalisation. This presents a generational opportunity for South Australia, which is home to around two thirds of Australia’s copper resources.

Olympic Dam, Carrapateena, and the Oak Dam project are located on the native title lands of the Kokatha people, and Prominent Hill is located on the native title lands of the Antakirinja Matu-Yankunytjatjara people. We recognise and acknowledge their enduring connection to Country. BHP also has operations and infrastructure on the traditional lands of the Arabana, Barngarla, the Dieri people, and acknowledges the cultural connection of the Kuyani people to the area.