BHP Billiton’s Olympic Dam Expansion approved

Up to 6,000 jobs will be created during the decade-long construction phase of BHP Billiton’s Olympic Dam expansion in South Australia, with 4,000 of those ongoing permanent jobs at the mine itself.

BHP Billiton this week announced approval for US$1.2 billion in pre-commitment capital for the first phase of the Olympic Dam Project, off the back of South Australian and Government environmental approvals announced on 10 October.

Still in feasibility phase, the commitment of funding suggests certainty that Board approval will be granted by mid 2012 as expected.  The funding will be used to procure long lead items such as trucks and accommodation, infrastructure development and early site works.

The Olympic Dam Project team is completing studies to create the world’s largest open pit mine, which will grow to be more than 4km long, 3.5km wide and 1km deep, and will produce about 750,000 tonnes of copper and about 19,000 tonnes of uranium oxide annually.

The expanded mine's waste rock facility will cover almost 7000 hectares and reach a height of 150 metres, while tailings storage will use eight new pods, each 65 metres tall and covering 2 sq km.

The plan also includes approval to build a new desalination plant on Spencer Gulf to provide water for the mine, a new gas-fired power station, a new airport at Olympic Dam and a 105km rail line to link the mine to the national rail network.

As contracts are awarded for the early works component, The Resource Channel will provide details.  For a summary of the project, click here: http://www.theresourcechannel.com.au/blog/mining-projects-new-south-wales-and-south-australia.