BHP Group (ASX:BHP) has awarded a new design and supply contract to China Nerin Engineering (Nerin) for processing facilities planned as part of its new smelter and refinery expansion project in South Australia.
The contract is valued at over $200 million and will be executed across several stages as BHP advances the project through study phases and towards a potential final investment decision (FID). A significant part of the agreement remains contingent upon that FID on the expansion project.
The expansion project at BHP’s Olympic Dam smelter and refinery complex is aimed at supporting the company’s ambition to increase South Australian production to 500,000 tonnes per annum through the 2030s. The company has also stated a goal to potentially grow this to 650,000 tonnes per annum by the end of the decade.
BHP currently has over $2 billion invested in growth projects focused on building South Australia’s copper province. This includes a 1.3km deep haul shaft at Prominent Hill and a new Southern Mine Area underground access tunnel at Olympic Dam.
Commenting on the new contract, Asset President Copper South Australia for BHP Anna Wiley says that this marks an important milestone for the company as it continues to build momentum in South Australia.
“Copper South Australia is a globally significant province and we are working at pace to unlock its full potential and supply more of the copper the world needs.”
Nerin Chairman Wu Runhua says the company looks forward to partnering with BHP to create a capital-efficient and high-performing end product.
“We are proud to be selected to support BHP’s smelter and refinery expansion studies in South Australia and to apply our experience delivering large-scale copper smelting and refining facilities around the world.”
Nerin is a leading metallurgical engineering design institute based out of China, and has experience with smelting complexes globally, having led the construction of seven large modern copper smelters.
BHP’s Copper South Australia is an asset in South Australia’s copper province, with three underground mines at Olympic Dam, Prominent Hill, and Carrapateena, which all feed a centralised smelter and refinery at Olympic Dam.
South Australia’s copper exploration
South Australia is the country’s top copper region, host to around 66% of Australia’s known copper resources and 103 million tonnes of contained copper within the state.
The Government of South Australia’s Department for Energy and Mining notes that exploration is on the rise with over $204 million a year being invested into exploration projects.
The government is supportive of the region’s copper expansion, with a focus on releasing new acreage in the Northern Gawler Craton, new infrastructure corridors to unlock new regions for investment, a water project to secure sustainable water supply, a workforce plan for Upper Spencer Gulf, and innovation hubs for advanced manufacturing and energy technology.
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Lincoln Minerals (ASX:LML) notes that copper demand is forecast to outpace supply in the near-term and is well-placed in the Eyre Peninsula to potentially feed that demand.
The company is focused on discovery through the Minbrie Copper Project, where re-logging and re-assaying of historic drilling has identified copper-base metals over 7km of strike.
Lincoln commenced aircore drilling at Minbrie in late June 2026, with a plan to drill across at least 40 holes to test for copper and other base metal potential within the 17km of target stratigraphy, as previously reported.
The company plans to target 1.7km of untested strike at the Eagle Ridge discovery hole BUDD192, where historical drilling confirmed widespread copper and intersections of 29.5m @ 0.8% copper, 7.5% lead, 1.9% zinc, and 9 grams per tonne silver from 131.1m.
Assays are expected in August 2026, at which point Lincoln will determine the potential for follow-up reverse circulation or diamond drilling.
Lincoln Minerals is focused on advancing copper and base metals projects in South Australia’s Gawler Craton region.
South Australia’s copper province continues to build momentum, with major producers and emerging explorers alike advancing projects that reinforce the state’s position as Australia’s premier copper growth hub.
Write to Amy Rotman at Mining.com.au
Images: BHP, Lincoln Minerals
