Investor News

Olympic Dam expansion to create 18,000 jobs

CAMERON ENGLAND

May 01, 2009

ABOUT 18,000 new jobs would be created by the proposed expansion of the Olympic Dam mine, BHP Billiton said yesterday.

BHP chief operating officer Uranium Australia Dean Dalla Valle said yesterday the expansion, if approved, would create about 5000 full-time jobs at the mine, increasing the workforce at the site from more than 3000 to about 8000.

During the construction phase of the mine expansion, the workforce would average about 4000 people over about 10 years. This figure would peak at about 6000 in 2015, if the project were started next year as proposed.

The number of people employed in both operations and construction at the mine would peak at about 14,000 in 2016.

"It will also create another 13,000 jobs across the state directly and indirectly, in support of the operation," Mr Dalla Valle said.

The majority of the operational workforce would be based around the mining operations, with 2500 extra staff required to operate the open-cut mine, and another 1000 in the processing plant. About 470 new administrative staff also would be required on site.

Many of the new jobs are expected to be filled by people from the Upper Spencer Gulf.

"Based on the residential arrangements of the current workforce, BHP Billiton predicts that the project would employ up to 1000 workers from the Upper Spencer Gulf and surrounding areas in the peak construction period and over 1000 workers from this region in the operation phase," the Environmental Impact Statement, released yesterday, says.

"The construction workforce would be made up largely of young men employed in the trades or in semi-skilled labour and related occupations.

"The expansion project would more than double the demand for workers in the trades and intermediate to lower skilled occupational categories in the resources sector in South Australia, and would account for around a quarter of the demand for laborers in the Australian resources sector.

"BHP Billiton anticipates some international workers would be employed in the construction and operation phases, in management, construction and commissioning positions."

BHP said it expected to face its greatest challenges in recruiting workers in the mechanical, electrical and other trades. It added it would focus on training, rather than seeking to attract staff from elsewhere in the resources sector.

"Further information on workforce and skills requirements including the size, make-up and sourcing of the workforce would be made available to government, training organisations and other relevant stakeholders as detailed planning and refinement occurred during the project definition phases and construction phase," the report says.