In its recently released financial results for the year end June 30, 2025, BHP reported positive results for its Copper South Australia operations, including underlying EBITDA increasing 23% predominantly as a result of higher average realised prices for copper, gold and silver, which had a favourable impact of US$0.4 billion (net of price linked costs); and higher sales volumes reflecting strong underlying performance, including recovery following a weather-related power outage in Q2 FY25.
Production for FY26 is expected to be between 310,000 t and 340,000 t, weighted to the second half. BHP stated: “Copper SA’s performance has improved significantly over the past few years. We now consistently deliver >300 ktpa copper production (>450 ktpa copper equivalent production), supporting strong unit cost performance and increasing annual free cash flow. This operational stability provides a strong foundation to invest in the business, with growth programs now advancing at all assets.”
At Prominent Hill, the Operation Expansion (PHOX) project has progressed, with shaft sinking completed in Q4 FY25. Work to complete the hoisting infrastructure is also continuing to progress. The project is forecast to be completed in H2 FY27 for a total investment of US$0.9 billion. The Wira shaft hoisting system is expected to extend the mine life to at least 2040.
At Carrapateena, the commissioning of Crusher 2 has supported higher productivity from the sub-level cave and BHP continues to invest in processing plant capacity to enable an uplift in throughput to 7 Mt/y of mined ore. The Block Cave Expansion project is progressing with underground development for an access decline below the existing sub-level cave continuing. The project is expected to extend the mine life beyond the existing sub-level cave and increase throughput up to 12 Mt/y, ramping up from FY29.
At Olympic Dam, the Southern Mining Area Decline was approved during the year for a total investment of US$0.2 billion and has commenced construction. It is expected to unlock up to 2.5 Mt/y of additional vertical capacity and support future mine expansion options, with completion expected in FY28.
At Oak Dam, exploration activity peaked at 13 active drill rigs during the period (8 now active). BHP: “We are seeking government, heritage and regulatory approvals to begin execution activities on twin underground access declines.”
During FY25, BHP continued to study the potential Smelter and Refinery Expansion (SRE), including sequencing, to optimise the profile of capital spend. In January it awarded the EPCM contract to EPCM) contract to a joint venture between Fluor Australia Pty Ltd and Hatch Pty Ltd.
“We expect to consider the first phase of the potential project for FID in HY28, to align with execution of the Smelter Campaign Maintenance 2027 program (SCM27). The first phase would involve a transition to a two stage smelter configuration with 1,100 to 1,400 ktpa concentrate smelting capacity better suited to asset mineralogy, which would be expected to unlock remaining synergies from the OZL acquisition.”
This would be supported by production growth from Carrapateena and Olympic Dam. The second phase of the expansion would increase capacity to align with potential further growth from Oak Dam and Olympic Dam, including OD Deeps.
