The CXPS2 Project will extend the operating life of Carrapateena by transitioning from sub-level caving to block caving and increasing ore throughput from approximately 7 Mtpa to 12 Mtpa. The development includes a new block cave mine, expanded underground materials handling infrastructure, a new crusher, an additional concentrator, and supporting surface infrastructure. Long-lead procurement is targeted to commence in Q2 FY2027, with construction planned to start in Q1 FY2028.

Project Scope

The underground mining scope includes development of the block cave footprint through extensive lateral and vertical mine development, drawbell and undercut construction, hydrofracturing activities, extraction drives, and supporting mine infrastructure. The project will progressively close portions of the existing Sub-Level Cave operation while transitioning production to the new Block Cave mine. Mining operations will incorporate remote loading systems at drawpoints with future progression toward autonomous mining technologies.

Supporting underground infrastructure includes dewatering systems, pump stations, electrical reticulation, communications networks, potable and fire water systems, compressed air, workshops, fuel facilities, explosive magazines, ventilation and refrigeration systems, and geotechnical and hydrogeological monitoring systems. These facilities will provide the services required to support safe and productive underground mining operations.

The project also includes expansion of the Materials Handling System (MHS), comprising a new crushing tipple, run-of-mine bin, primary crusher, crushed ore storage facilities, conveyor systems, transfer stations, stackers, tramp metal removal systems, and upgrades to existing ore handling infrastructure. The expanded MHS will transport ore from the underground mine to the processing facilities and support sustained production at increased throughput rates.

To accommodate higher ore production, CXP Stage 2 includes construction of an additional ~5 Mtpa concentrator. The mineral processing facilities will include stockpile reclaim systems, grinding circuits, flotation and regrind circuits, reagent storage and distribution, concentrate thickening, concentrate filtration and storage facilities, and tailings handling systems integrated with the existing Tailings Storage Facility infrastructure.

The scope further includes substantial surface infrastructure developments, including access roads, laydown areas, warehouses, workshops, office and crib facilities, stormwater management systems, water storage and reticulation infrastructure, and power distribution systems. Regional infrastructure works include a new water supply system incorporating approximately 55 km of pipeline and associated pumping infrastructure, expansion of the regional power supply network including a new 132 kV yard, and upgrades to the Western Access Road to support construction and operational requirements.

Project Execution Schedule

Current planning indicates that procurement activities for long-lead equipment and critical supply packages will commence during Q2 FY2027 to support engineering development and execution readiness. Construction activities are planned to commence in Q1 FY2028, with procurement activities progressively aligned to engineering releases, work package readiness, construction sequencing, commissioning requirements, and operational integration milestones.

The procurement strategy has been developed to ensure that equipment, materials, and contractor services are available when required to support underground development, surface construction, infrastructure installation, commissioning, and operational readiness objectives.

Procurement and Supply of Goods and Services

The procurement function will play a critical role in enabling successful project delivery by ensuring the timely sourcing, acquisition, expediting, delivery, and management of all goods and services required to execute CXP Stage 2. Procurement activities will be aligned to overall project execution readiness objectives, including material readiness, construction readiness, commissioning readiness, and operational readiness.

The project is expected to involve a combination of engineered equipment purchases, bulk material supply agreements, specialist contractor engagements, construction trade contracts, logistics services, mining infrastructure packages, and long-lead equipment procurements. Procurement activities will include market engagement, supplier qualification, tendering, evaluation, award recommendation, contract formation, supplier performance management, expediting, logistics coordination, quality surveillance, contract administration, and close-out.

Worley, acting as BHP's EPCM contractor and authorised representative for procurement execution, will manage the end-to-end procurement process on behalf of the project. This includes development of sourcing strategies, preparation and issue of enquiries, commercial evaluation of bids, management of supplier negotiations, administration of awarded contracts and purchase orders, coordination of supplier quality surveillance activities, logistics management, and support of supplier commissioning and close-out activities.

A strong emphasis will be placed on procurement planning, early supplier engagement, management of long-lead equipment packages, supplier performance monitoring, risk management, and integration with project engineering and construction teams to ensure procurement deliverables directly support successful project execution outcomes. The procurement approach will also support local content objectives, Indigenous participation opportunities, and compliance with BHP governance, safety, sustainability, and contractor management requirements throughout the project lifecycle.