off-the-wire

BHP awards over $138M contract to Chinese firm for South Australian expansion project

Kitco Media
By Reuters
Published:
Updated:
Reuters
BHP awards over $138M contract to Chinese firm for South Australian expansion project teaser image

BHP on Wednesday awarded a contract worth more than A$200 million ($138.80 million) to China Nerin Engineering to design and supply key processing facilities in South Australia.

The contract is a part of BHP’s proposed smelter and refinery expansion project in South Australia, the company said.

China Nerin Engineering, a metallurgical engineering design firm, will execute the contract in stages as BHP advances studies on the project ahead of a potential final investment decision (FID) in 2027.

The supply part of the agreement depends on BHP approving the FID on the smelter and refinery expansion, it added.

The contract is tied to BHP’s planned expansion of the Olympic Dam smelter and refinery and is central to its plan to boost copper production in South Australia to 500,000 metric tons a year through the 2030s.

China Nerin Engineering said in a separate statement that completion is set for early 2032.

($1 = 1.4409 Australian dollars)

(By Keshav Singh Chundawat; Editing by Sonia Cheema)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.