BHP has laid out plans to bring together the copper assets it bought from OZ Minerals with its existing mines to boost Australia’s share of the global market.
BHP has laid out plans to bring together the copper assets it bought from OZ Minerals with its existing mines to boost Australia’s share of the global market.
Perth-based chief operating officer Edgar Basto has been charged with integrating OZ Minerals into BHP and overseeing the Olympic Dam, Prominent Hill and Carrapateena mines in South Australia.
Mr Basto also has responsibility for the $1.7 billion West Musgrave copper and nickel project in the eastern Goldfields, which BHP acquired as part of the OZ takeover.
Speaking at an Austmine conference in Adelaide today, he said the world will need more copper to accelerate the energy transition.
“To take just one example, we estimate that electric vehicles could account for nearly 60 per cent of global annual car sales by 2030 and nearly all sales by 2050,” he said.
“EVs use around four times more copper than petrol-based cars.
“We often associate EV batteries with nickel and lithium, but an EV battery contains around three times more copper than a conventional car battery.”
BHP is already a top three global producer of copper with annual output of 1.5 million tonnes.
The biggest contributor is its giant Escondida mine in Chile.
Australia is a relatively small player.
Citing Geoscience Australia data, Mr Basto said Australia is ranked number two in the world for copper resources but number eight for production.
In South Australia, BHP already operates the Olympic Dam mine.
Its acquisition of OZ Minerals brought mines at Carrapateena and Prominent Hill into BHP’s portfolio.
In addition it has obtained environmental approval for the next phase of exploration at its Oak Dam prospect, around 65km southeast of Olympic Dam.
“Anyone who is familiar with the geography of the Gawler Craton will at once see the opportunity that all of this presents,” Mr Basto said.
“We have three existing mines that are attractive in their own right, but if we start to look at them together, we see the longer-term opportunities and potential synergies to build a copper province that could put SA on the global copper map.”
Mr Basto said South Australia has nearly 70 per cent of Australia’s copper resources but produces just under 30 per cent of the country’s mined copper.
“The Gawler Craton has huge un-tapped potential,” he said.
“Just imagine for a moment that we can develop a mining hub centred around a smelter that brings even more of SA’s high quality copper to global customers.
“It’s an exciting prospect.”
The task of building a copper province in SA rests with vice president growth Michelle Ash, who joined BHP from OZ and reports to Mr Basto.
Responsibility for West Musgrave and the Kalkaroo prospect in SA rests with projects executive Debbie Morrow, who has also joined from OZ.
