“The time to seize this opportunity is now.”
That’s the message from South Australian Premier Peter Malinauskas after South Australia recorded a record $25.6 million in monthly royalty return from BHP’s Olympic Dam operation in April.
Malinauskas pointed to the record royalties as the State Government and BHP also reached an agreement to modernise the decades-old rules governing South Australian copper assets.
The announcement comes as SA positions itself to unlock further growth across its copper sector, with the updated framework designed to support future expansion while maximising long-term economic returns from the state’s resources sector.
Following months of negotiations, the Government and BHP have agreed to update the 40-year-old Olympic Dam and Stuart Shelf Indenture. Once ratified by Parliament, the updated indenture is expected to provide a clearer and more contemporary framework for future expansion projects across BHP’s Olympic Dam, Prominent Hill and Carrapateena operations while supporting ongoing operations and investment certainty.
“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,” Malinauskas said.
“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 revised agreement includes commitments relating to Aboriginal heritage, water extraction, local jobs and business opportunities, financial assurances and royalties.
Malinauskas said the updates will help support stronger integration between the state’s major copper operations while creating a clearer pathway for future growth.
“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,” he said.
South Australian Minister for Energy and Mining Tom Koutsantonis said the agreement will help position the state as a major supplier of critical minerals needed for the global energy transition.
“This milestone agreement enables South Australia to deliver on the promise of a world-class copper province,” Koutsantonis said.
“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.”
BHP chief executive officer Mike Henry said the revised framework will support the company’s long-term growth ambitions in South Australia.
“More efficient approval pathways and stable regulatory settings give us the confidence to invest and continue building South Australia’s world class copper province,” Henry said.
“This update is an important element in enabling BHP’s significant growth aspirations for our Copper South Australia business.”
Read more: South Australia’s major copper-tunity
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