Olympic Dam - The News

In the longer term, South Australia will present very differently to its current situation. BHP Billiton has received federal and state government approval to expand its Olympic Dam mine into the world’s largest open pit operation. It is forecast to contribute $45 billion to the SA economy and almost $18 billion to the national economy over the next 40 years.

This operation still requires approval from the BHP Board, however it does look promising. BHP appears committed and indicates the project will go before the Board in the first half of 2012. There will be many aspects that boost the economy from the project but in the longer term it will be the state royalties (estimated at $350 million per annum) and increased exports that provide the most benefit.

Should BHP move forward, the Olympic Dam project will dramatically change the fortunes of South Australia. However, it will take some time for the benefits to flow through to the Adelaide area. The first beneficiaries will be areas such as Whyalla and Port Augusta, which will see increased activity as equipment and services are transported to the expanding mine.

Sourced from Michael Yarndey's Blog