The South Australian Government has announced it will grant the extension to the indenture for the BHP Billiton Olympic Dam expansion works.

 

The period by which BHP Billiton is now required to approve the expansion has been extended to October 2016.

 

Under the terms of agreement, BHP Billiton has also announced a commitment to spending $650 million over the next four years at Olympic Dam and other initiatives within South Australia.

 

Premier Jay Weatherill says the announcement reaffirms BHP Billiton’s commitment to South Australia.

 

“We have extended the indenture to allow BHPB to develop a revised plan, involving new and innovative ways of mining and processing,” Mr Weatherill said.

 

“The level of BHPB’s activity reinforces the commitment it has to its existing workers at Olympic Dam, which is the largest underground mine in Australia.”

 

Mineral Resources and Energy Minister Tom Koutsantonis said Olympic Dam was an incredibly rich resource body and would be developed.

 

“Olympic Dam is still the world’s biggest uranium resource and fourth biggest copper and gold resources,” Mr Koutsantonis said.

 

“The independent advice I received showed BHP Billiton did face unforseen economic circumstances that prevented them from approving the original proposal by the December 15 deadline.”

 

Mr Weatherill said BHPB’s commitments include:

  • Substantial mine-related research
  • Investments in building capacity of mining services enterprises, including clustering arrangements
  • Environmental works, including partnerships with research institutions about marine impacts of Olympic Dam related activity
  • Supporting greater participation by Aboriginal people and businesses led by Aboriginal people.
  • Establishing a major national Aboriginal cultural event.