BHP Group (BHP.US) advances Olympic Dam copper expansion as it sees long-term copper outlook

BHP Group (BHP.US) is pushing ahead with a major expansion of its Olympic Dam copper smelter and refinery in South Australia, currently submitting permits to the state government.

The world's largest miner plans to raise its annual production of cathode copper from 322,000 tonnes to 500,000 tonnes by the early 2030s, and possibly to 650,000 tonnes, according to a statement on Friday. At the same time, BHP is preparing to boost iron ore production in the region.

Global miners are stepping up the development of copper resources as the metal is set to play a key role in the energy transition. While BHP warned this week that the current copper market is oversupplied, it expects rising demand to trigger a long-term global shortage by the end of this decade, which could push up copper prices.

"We are expanding copper production in South Australia and we are doing projects and research at all our sites," said Anna Wiley, BHP's copper president for South Australia. "By the middle of the next decade, our production could double."

The project will include a new furnace, according to a document submitted to the government. BHP will make a final investment decision on the expansion in 2027.