South Australia's copper potential is set to expand following a landmark agreement between the Malinauskas Government and BHP.
The agreement is expected to support growth across the state's copper sector and reinforce its long term development.
Following months of negotiation, the Government and BHP have finalised arrangements to modernise the 40-year-old bilateral framework guiding development at Olympic Dam and across the copper rich Gawler Craton.
It comes amid a record Olympic Dam Royalty payment – $25.6 million for the month of April, the largest ever received by the Department of Energy and Mining.
Olympic Dam is forecast to deliver total royalties in excess of $215 million this financial year.
The Olympic Dam and Stuart Shelf Indenture, once ratified in the Parliament, will help to unlock more of the enormous value of South Australia's vast copper, gold, silver and uranium deposits.
The modernised Indenture will provide a clearer and more contemporary framework to support future activities in BHP's Copper SA Province, including approval processes for expansion projects and the ongoing operation of the Roxby Downs township.
The changes include commitments to transitioning to the current Aboriginal Heritage Act, water extraction, maximising local jobs and business opportunities, financial assurances, and royalties.
The expansion of the Copper SA Province – initially focused on the Olympic Dam, Prominent Hill and Carrapateena projects – can unlock projects with the potential to extend into the next century, supporting South Australia's economy for decades.
As put by Peter Malinauskas
South Australia is home to two thirds of Australia's proven copper deposits, and we have before us a generational opportunity to maximise the benefit of this critical mineral for our entire state.
The time to seize this opportunity is now.
Since its acquisition of the Olympic Dam project more than 20 years ago, BHP has repeatedly voiced an ambition to unlock the true value of this remarkable world-class province. The addition of Prominent Hill and Carrapateena to BHP's portfolio have only added to the impetus to deliver on that promise.
These changes to the Indenture will enable better integration of the existing copper production from the three operating mines, while establishing a clearer pathway for negotiating further expansions that can underpin the state's economic growth for generations to come.
As put by Tom Koutsantonis
This milestone agreement enables South Australia to deliver on the promise of a world-class copper province.
The Malinauskas Government and BHP have long shared a vision to develop an internationally recognised copper province.
This agreement provides the long-term certainty and assurances needed by both sides to achieve our ambition for South Australians.
The pathway to a net zero future requires copper, and South Australia can play a transformative role as a major supplier to a world that is desperate for strategic and critical minerals.
In achieving that aim, we can create jobs, business opportunities, increase value-added exports and a source of sustained revenue to underpin South Australia's continued growth and prosperity.
As put by Mike Henry, BHP CEO
We commend the South Australian Government for its leadership in making this indenture update happen, as well as for its strong long-term support for the mining industry.
More efficient approval pathways and stable regulatory settings give us the confidence to invest and continue building South Australia's world class copper province.
This update is an important element in enabling BHP's significant growth aspirations for our Copper South Australia business.
As put by Anna Wiley, Copper SA Asset President
A modernised Indenture is a critical foundation for Copper SA, providing a fit-for-purpose regulatory framework to support the development of a world-class ore-to-metal copper province in South Australia, now and into the future.
With more efficient approvals pathways under the Mining Act and stronger alignment with contemporary standards, the updated Indenture will help sustainably unlock South Australia's significant copper potential.
We welcome the commencement of the parliamentary process and will continue to engage constructively with connections and stakeholders throughout.
We acknowledge the South Australian Government's leadership in progressing the Indenture update and look forward to continuing to work together to support South Australia's future prosperity.
