BHP awards contract to Nerin for South Australia smelter project
me-metals: The contract will proceed in stages as BHP continues assessments, with a potential FID expected in 2027.
According to me-metals cited by mining-technology.com, BHP has awarded China Nerin Engineering (Nerin) a design and supply contract valued at more than A$200m ($138.5m) for critical processing facilities as part of South Australia’s proposed smelter and refinery expansion project.
The contract will be delivered in staged phases as BHP advances assessment work ahead of a possible final investment decision (FID) on the expansion, currently expected in calendar year 2027.
The supply component of the contract is subject to the company granting final approval for the project.
Nerin, described as one of China’s main metallurgical engineering design institutes, has contributed to the formation of several large modern copper smelters globally.
The Olympic Dam smelter and refinery complex is central to BHP’s Copper South Australia operations.
The company aims to raise production from South Australia to 500,000 tonnes per annum (tpa) during the 2030s, with the potential to reach 650,000tpa by the end of the decade if the expansion goes ahead.
BHP currently has projects worth more than A$2bn under way across the province, including a new deep haul shaft at Prominent Hill and underground tunnelling at Olympic Dam.
BHP Copper South Australia asset president Anna Wiley said: “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.”
Copper South Australia comprises three underground mines – Olympic Dam, Prominent Hill and Carrapateena – which supply the Olympic Dam’s centralised smelter and refinery. It also includes an exploration site at Oak Dam.
Earlier this month, the company, via a wholly owned subsidiary, reached definitive agreements to sell 100% of its San Manuel property in Arizona, US, to Faraday Copper.
source: mining-technology.com
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