Worley Secures BHP Copper Contracts Across South Australia
Worley Secures BHP Copper Contracts Across South Australia
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Key Points
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Olympic Dam contains significant copper, gold and uranium deposits, while Carrapateena produces copper concentrate, underscoring the differing mineral profiles of the two operations.
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Worley CEO Chris Ashton said the company was pleased to support BHP’s ambition to grow copper production in South Australia and highlighted plans to work with local businesses as the projects progress.
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The EPCM model covers design, procurement and construction oversight across a project’s lifecycle, meaning the work can generate service-based revenue over multiple phases rather than through a single project handover.
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Worley is a Sydney-based provider of engineering, project and asset-management services spanning the energy, chemicals and resources sectors.
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Following the contract announcement, Worley shares were reported at A$10.02 in one market update, while another report said they ended 0.3% higher at A$9.80; BHP shares closed down 0.5% at 3,345 pence in London.
Worley has won contracts from mining giant BHP to design and manage expansion work at two major copper operations in South Australia: Olympic Dam and Carrapateena. Yahoo Finance reported the deal includes study, engineering, procurement and construction management services. Work has already started, but the projects need final approval from BHP before full construction begins. The contract value and timeline were not disclosed.
The deals boost Worley's exposure to copper, a priority market as electricity demand and energy transition efforts grow worldwide. Mining Technology noted that Worley will lead the work through its Australian team, drawing on specialist partners and global offices in China and Chile to deliver the projects.
Olympic Dam Gets Block-Cave Mining Study
At Olympic Dam, Worley will study and design a block-cave mining operation that could unlock deeper copper, gold and uranium deposits. Mining Weekly explained that the work includes planning for related infrastructure needed to support the expanded mine. The project is still in early phases and depends on BHP's investment decision later.
Carrapateena Poised for Deeper Underground Expansion
Carrapateena, which currently produces copper concentrate, could expand its underground mining operations and processing plants under the new contracts. IM Mining reported Worley will help design the deeper mining and upgraded facilities to boost output. Like Olympic Dam, this project requires BHP board approval before construction advances to the next stage.
Worley's Long-Term Service Revenue Model
The EPCM contract model lets Worley earn service fees across multiple project phases rather than in a single handover. This approach covers design, buying equipment, and construction oversight throughout a project's full lifecycle. Yahoo Finance noted the structure can generate sustained revenue as BHP moves from early studies through to final construction and operation.
Copper Demand Surge Drives Energy Transition Plans
BHP and Worley both view copper as critical to the global energy transition. Worley CEO Chris Ashton said the company is pleased to support BHP's plan to grow South Australian copper output. Mining Weekly highlighted that both firms see rising copper demand from electrification and renewable energy projects, making South Australia's deposits increasingly valuable in the years ahead.
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