The South Australian government has finalised an agreement with mining giant BHP to support the state’s copper sector, coinciding with a record-breaking AU$25.6 million monthly royalty payment from the Olympic Dam mine for April.
The record payment, the largest ever received by the Department of Energy and Mining, puts Olympic Dam on track to deliver more than AU$215 million in total royalties this financial year.
Following months of negotiations, the state government and BHP have updated the 40-year-old bilateral framework that guides development at Olympic Dam and across the copper-rich Gawler Craton.
Once ratified in the South Australian Parliament, the modernised Olympic Dam and Stuart Shelf Indenture will establish a contemporary regulatory framework to unlock vast deposits of copper, gold, silver, and uranium.
The updated agreement streamlines approval processes for future expansion projects within BHP’s Copper SA Province, initially focusing on the integrated operations of the Olympic Dam, Prominent Hill, and Carrapateena mines.
It also secures the ongoing operation of the Roxby Downs township, introduces stricter water extraction guidelines, establishes financial assurances, and mandates a transition to the current Aboriginal Heritage Act.
Crucially, the deal guarantees commitments to maximising local jobs and business opportunities.
SA Premier Peter Malinauskas said South Australia, which holds two-thirds of the nation’s proven copper deposits, faces a generational opportunity to maximise this critical mineral.
“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,” Malinauskas said.
BHP CEO Mike Henry noted that stable regulatory settings and more efficient approval pathways under the Mining Act give the company the confidence to invest heavily in its South Australian growth aspirations.
Energy and Mining Minister Tom Koutsantonis added that South Australia is poised to become a transformative supplier to a world increasingly desperate for critical minerals to fuel a net-zero future.
“This milestone agreement enables South Australia to deliver on the promise of a world-class copper province,” he added.
