BHP calms fears over future of Olympic Dam expansion

31/05/2012 - A senior BHP Billiton official has spoken with the South Australian government and the state opposition to ease concerns over the future of the $30 billion Olympic Dam mine expansion.

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The head of the company's uranium operations, Dean Dalla Valle, contacted the government and the opposition on Wednesday amid concerns the company might seek to significantly delay the project.

The mining giant has allocated some pre-commitment funds but says a final decision on the expansion is now not likely until the end of 2012.

That runs close to a state government deadline for approval which was included in the indenture legislation approved by state parliament late last year.

The government has consistently said it won't extend the deadline with comments by senior ministers and Premier Jay Weatherill recently reaffirming that view.

Opposition Leader Isobel Redmond said her conversation with Dalla Valle was cut short but he was "more reassuring than otherwise".

"In essence nothing has changed and they are still very hopeful of a decision before the end of this year and that's been their position for some time," she said.

Weatherill told state parliament the government had done all it could to ensure BHP-Billiton was in a position to approve the project.

He said representations were also made to the commonwealth to lobby against measures, including changes to the diesel fuel rebate scheme, that might have impacted on any decision to push ahead at Olympic Dam.

"We have taken every step necessary to ensure that BHP Billiton are in a position to approve this project," Weatherill said.

Dalla Valle said he remained confident that a decision would be made by the end of the year.

"I can understand why people are concerned and interested in what's going on and we're working very hard to get the right decision," he told the ABC.

The expanded Olympic Dam mine is expected to generate up to 6000 new jobs during the 11-year construction phase and a further 4000 operational jobs.

Annual copper production is forecast to more than triple to about 750,000 tonnes and uranium oxide production will jump to 19,000 tonnes.

The project is also tipped to create 15,000 indirect jobs in flow-on industries and services.

Source: AAP

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