BHP Announces 10,730 Million Tonne Olympic Dam Resource
Key Facts
BHP announced its first mineral resource estimate for a block-caving scenario at Olympic Dam, totalling 10,730 million tonnes, in its operational review for the September 2026 quarter. The announcement forms part of the company's strategy to grow its South Australia copper business, including the development of mining operations and processing facilities. According to the company's disclosure, the resource has a copper grade of 0.59% and a uranium oxide grade of 0.19 kilograms per tonne. The estimate also includes gold at a grade of 0.21 grams per tonne and silver at 1 gram per tonne. The announcement includes a reassessment of material from the existing geological model, while evaluation of the block-caving method remains at an early stage.
BHP said in its disclosure that the resource "has not been converted to ore reserves" and gave no timetable for its development. The resource estimate announcement does not constitute a final investment decision or approval of a budget to develop the resource, while assessment of the proposed mining method remains at an early stage. In a separate statement on services contracts for South Australia copper projects, Worley confirmed that the Olympic Dam and Carrapateena expansions remain subject to BHP's final investment decision. Worley's contracted work includes the potential development of block caving and associated infrastructure at Olympic Dam. Worley said engineering, procurement and construction management services had already begun for early activities under the expansion programme.
In current operations, South Australia copper production totalled 60.7 thousand tonnes in the September 2026 quarter, according to the company's operational review. That represents a decline of 16% from the same quarter a year earlier, as work continued on plans to grow the Australian portfolio. Chief Executive Brandon Craig said copper production disruptions included "severe weather in Chile, safety stoppages and the conveyor failure at Carrapateena". Craig also noted that copper prices were about 50% higher than a year earlier, supporting earnings. The company linked its strong long-term outlook for copper to global investment in data centres and their supporting infrastructure.
BHP previously announced in October 2025 that it would invest more than 840 million Australian dollars in a series of projects preparing Olympic Dam's operations for growth. These projects include improving access to underground work areas, according to the company's announcement on investment at the site. They also include upgrades to ore handling and improvements in smelter performance, as part of the preparatory work announced to support operational growth. Olympic Dam is located 650 kilometres northwest of Adelaide, the capital of South Australia, according to the company's operational description. The site combines underground mining operations with surface facilities and forms part of the group's South Australia copper portfolio.
For the expansion of processing facilities, BHP awarded China Nerin Engineering a contract worth more than 200 million Australian dollars, according to its July 2026 announcement. The contract covers the design and supply of processing facilities for the proposed smelter and refinery expansion, for which the company has set a potential date for a final investment decision. On the regulatory front, the responsible ministerial authority approved the assessment requirements for the smelter and refinery expansion project on 5 November 2025. The South Australian government's planning portal said BHP would prepare the project's environmental impact statement following approval of those requirements. The approval concerns the assessment requirements for the smelter and refinery expansion, while the projects served by Worley remain subject to the company's final investment decision.
BHP said it would provide further details on its South Australia copper strategy during a site visit in November. The strategy aims to bring the portfolio's production to about 500 thousand tonnes annually by 2035, according to the company's quarterly review. Its stated ambition extends to output of up to 650 thousand tonnes annually by 2040, as part of long-term growth plans for the Australian business. Development of block caving at Olympic Dam remains at an early evaluation stage, and the company has set no timetable for implementation. For the smelter and refinery expansion specifically, BHP has identified 2027 as a potential date for a final investment decision.