BHP sees ‘exciting potential’ in new SA project

BHP is exploring the Oak Dam project in South Australia, which could become a fourth underground copper mine in its Copper SA province.

Located 65km south-east of Olympic Dam on Kokatha country, the deposit is a deep iron oxide copper-gold (IOCG) system showing, as BHP said in a recent LinkedIn post, “exciting potential”.

Early exploration has uncovered high-grade copper and associated minerals that may be economically viable, though further studies are required.

Exploration has revealed high-grade copper and associated minerals starting about 800m below the surface, which may be economically viable to mine pending further studies.

To accelerate resource definition and reduce drilling and development costs, BHP has proposed the Oak Dam underground access project (OKDUGA), which would establish twin declines for underground access, enabling targeted exploration and geotechnical testing.

BHP has applied to SA’s Department for Energy and Mining for a retention lease and two miscellaneous purposes licences to construct the declines, access roads and water infrastructure.

These applications are currently under assessment, following public consultation and engagement with Indigenous groups, pastoralists and local communities.

If approved, the project would complement surface infrastructure already approved under the ongoing exploration program for environment protection and rehabilitation, including an exploration village, core processing facilities, and up to 14 drill rigs.

BHP said Oak Dam aligns with its strategy to sustainably supply critical resources for the global energy transition. Already Australia’s largest copper producer through Olympic Dam, BHP’s acquisition of OZ Minerals added Prominent Hill and Carrapateena to its portfolio, creating an integrated copper province in SA.

“The Oak Dam project represents a potential further growth opportunity in a world-class copper province,” BHP said.

Underground access will allow the company to better define the deposit and assess the feasibility of a future fourth SA copper mine, reinforcing the state’s role as a key hub for copper production.