BHP has awarded a design and supply contract worth more than A$200 million to China Nerin Engineering Co. Ltd. for key processing facilities linked to the proposed expansion of the Olympic Dam copper smelter and refinery in South Australia. The agreement marks another major milestone in BHP’s long-term strategy to significantly increase copper production as global demand accelerates.
The contract will be delivered in several stages while BHP completes engineering studies and progresses toward a final investment decision (FID) expected in 2027. The equipment supply component of the agreement will only proceed if BHP formally approves the expansion project, meaning the current contract primarily supports design, engineering and optimisation work.
China Nerin Engineering is one of China’s leading metallurgical engineering companies and has participated in the construction of several large-scale copper smelters worldwide. BHP said the firm’s expertise in smelting and refining technology made it a strong partner for the project, which is intended to modernise Olympic Dam’s processing facilities and improve production efficiency.
The expansion is central to BHP’s broader Copper South Australia growth strategy. The company aims to lift copper production in the state to around 500,000 tonnes per year during the 2030s, with the potential to reach 650,000 tonnes annually later in the decade. BHP believes growing demand from renewable energy, electric vehicles, data centres and power networks will make copper one of the world’s most important strategic commodities over the coming decades.
BHP is already investing more than A$2 billion across South Australia through projects including the 1.3-kilometre-deep haul shaft at Prominent Hill and a new underground access tunnel at Olympic Dam. The company said these investments are designed to transform the region into one of the world’s leading copper production hubs. Copper South Australia currently employs around 8,000 people and produced approximately 316,000 tonnes of copper in FY2025.
The contract also highlights the increasingly global nature of mining supply chains. Despite strategic competition between Australia and China in some sectors, BHP said accessing specialised international engineering expertise is essential for delivering large, technically complex projects efficiently. Industry analysts believe the partnership demonstrates that commercial collaboration in critical minerals continues even amid broader geopolitical tensions.
