Australian metal producer BHP plans to invest in Australian copper mining and smelting, while its copper output in Chile and Brazil is expected to fall from current levels over the medium term to 2030.
BHP will produce 235,000 t/yr of copper at its Pampa Norte copper complex in Chile over the medium term, down from 268,000t in the 2024-25 financial year to 30 June, and on the lower end of an expected 230,000–250,000t in 2025-26, it said in its financial report on 19 August.
The company set its medium-term production guidance at 250,000t in its 2023-24 financial report, but revised it down because of grade changes as the company is transitioning mining at Pampa Norte to a lower grade section of the mine.
But it is investigating debottlenecking projects at one of the complex's concentrators, which could increase copper production. BHP will make an investment decision on the projects in 2027.
The company is also looking at restarting its Cerro Colorado mine at Pampa Norte — which it placed into care and maintenance in December 2023 — using sulphide leaching technology to process ore.
BHP also expects its medium-term production rate at the Escondida mine in Chile to fall to 900,000-1mn t/yr over the five years to 2030, from 1.3mn t in 2024-25 and an expected 1.2mn–1.3mn t in 2025-26. The decline is expected to come from falling concentrator feed grades. BHP flagged the issue in its 2024-25 and has not changed its medium-term forecast since.
The company may invest in its South Australian copper mining and smelting operations in two phases over the coming years, it said, potentially increasing production as South American grades fall.
BHP will make an investment decision on the first phase, which will allow it to smelt 1.1mn–1.4mn t/yr of copper concentrate, in 2028. The project will involve a smelter expansion and production growth at its Olympic Dam and Carrapateena mines. The company had previously planned to decide whether to progress the project in 2027.
It plans to expand its South Australian operations again at a later stage but has not announced a specific timeline for the second phase.
BHP cited high Australian building and energy costs as factors that make domestic copper smelting difficult.
It is not the only company voicing concern over smelting costs. Global metal producer Glencore has asked the Australian government to support its copper processing plants in Queensland. Its Mount Isa copper smelter and Townsville copper refinery are both currently under review and may close in 2026.
