South Australia has recorded its highest-ever monthly copper royalty payment, with BHP’s Olympic Dam operation delivering $25.6 million in royalties to the state government in April.
The payment comes as the South Australian Government and BHP finalise an agreement to modernise the Olympic Dam and Stuart Shelf Indenture, the 40-year-old framework governing development across the state’s copper-rich Gawler Craton.
South Australian Premier Peter Malinauskas said the state was well positioned to benefit from growing global copper demand.
“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.
“The time to seize this opportunity is now.”
According to the government, Olympic Dam is expected to generate more than $215 million in royalties during the current financial year.
The updated agreement is designed to support future growth across BHP’s Copper SA Province, including operations at Olympic Dam, Prominent Hill and Carrapateena.
The revised framework aims to address approval processes, water extraction, royalties, Aboriginal heritage obligations, financial assurances, and local employment opportunities.
“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,” Malinauskas said.
“The addition of Prominent Hill and Carrapateena to BHP’s portfolio have only added to the impetus to deliver on that promise.”
Malinauskas also said the revised indenture would improve integration between the state’s major copper operations while supporting future expansion projects.
“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.”
South Australian minister for energy and mining Tom Koutsantonis said the agreement would provide greater certainty for long-term development.
“This milestone agreement enables South Australia to deliver on the promise of a world-class copper province,” Koutsantonis said.
“In achieving that aim, we can create jobs, business opportunities, increase value-added exports and a source of sustained revenue to underpin South Australia’s continued growth and prosperity.
“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 streamlined approvals and stable regulatory settings would support investment confidence.
“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.”
Copper SA Asset President Anna Wiley said the revised framework would support long-term development of the state’s copper assets.
“A modernised Indenture is a critical foundation for Copper SA, providing a fit-for-purpose regulatory framework to support the development of a world-class ore-to-metal copper province in South Australia, now and into the future,” Wiley said.
“With more efficient approvals pathways under the Mining Act and stronger alignment with contemporary standards, the updated Indenture will help sustainably unlock South Australia’s significant copper potential.
“We welcome the commencement of the parliamentary process and will continue to engage constructively with connections and stakeholders throughout.”
