How BHP is Unlocking Copper Growth With China Nerin Deal

In an effort to optimise its smelting and refining operations, BHP has awarded a staged design and supply contract to China Nerin Engineering Co. Ltd (Nerin).

The landmark partnership focuses on supporting BHP's plans to expand its Copper South Australia (SA) asset and boost production of this vital mineral, which is expected to see a 70% increase in global demand by 2050.

How the expansion works

The contract, valued at more than AU$200m, will be executed in separate stages as BHP advances through study and design optimisation phases.

This framework allows both partners to collaboratively develop highly technical smelting and refining solutions prior to a potential Final Investment Decision (FID) by BHP in calendar year 2027.

The supply portion of the contract remains strictly contingent upon BHP approving this final decision.

If approved, the expansion aims to boost BHP's South Australian copper output to 500,000 tonnes per annum during the 2030s, with the potential to scale up to 650,000 tpa by the end of that decade.

This expansion will build upon an existing operations infrastructure supported by a workforce of approximately 8,000 across Copper SA's three underground mines: Olympic Dam, Prominent Hill and Carrapateena. All three feed into a centralised smelter and refinery at Olympic Dam.

More than AU$2bn in capital projects are already in active execution across the Copper SA province. Key ongoing infrastructure projects include a 1.3-kilometre-deep haul shaft at Prominent Hill and a new Southern Mine Area underground access tunnel at Olympic Dam.

Nerin, one of China’s leading metallurgical engineering design institutes, brings specialised capabilities spanning the entire supply chain of non-ferrous metals, including mining, mineral processing, smelting and metal processing.

To deliver high-performing copper facilities, the engineering firm leverages several proprietary technologies, such as flash and bath smelting, modern mineral processing and both open-pit and deep-shaft mining methods.

BHP’s supply chain & corporate advancements

Rashpal Bhatti, Group Procurement Officer at BHP, says: “Partnering with Nerin reflects our focus on building a globally connected supply chain to support Copper South Australia’s growth. Nerin brings the scale and technical expertise to progress complex smelting and refining solutions.

“As demand for copper intensifies, partnerships like this enable us to access innovation across key markets and support reliable project delivery.”

Anna Wiley, Asset President Copper South Australia at BHP, credited the team for their momentum in the state, stating that the contract marks "another important step in our plans to increase copper production here. Copper South Australia is a globally significant province and we are working at pace to unlock its full potential and supply more of the copper the world needs”.

Wu Runhua, Chairman of China Nerin Engineering, also spoke on the new collaboration: “We look forward to working closely with BHP and its partners to provide a capital-efficient and high-performing design and supply solution as the project progresses.”

Beyond copper, BHP's extensive South Australian operations extract critical co-products including uranium, silver and gold.

Globally, the miner continues to advance significant environmental efficiency initiatives, targeting a 30% reduction in greenhouse gas (GHG) emissions and a 40% reduction in GHG intensity for BHP-chartered shipping by 2030.

Additionally, BHP is actively co-developing technologies to target a 30% reduction in GHG emissions for traditional blast furnace steelmaking.

These international efficiency targets align with operational innovations implemented elsewhere in BHP's portfolio. Earlier this year, engineering changes to the Western Australian Iron Ore (WAIO) truck fleet allowed haul trucks to tip at a higher angle, adding approximately 127,000 tonnes of iron ore per month to South Flank's operations.