The South Australian government has chosen Mullaquana station, near Whyalla, as the preferred site for the Northern Water desalination plant, clearing the way for planning on a project seen as critical to BHP’s long-term copper strategy.

The location, about 20 km south of Whyalla, emerged as the most suitable following a multi-criteria analysis comparing Mullaquana station with Cape Hardy on the eastern Eyre Peninsula.

The assessment weighed economic, social and environmental considerations, as well as project deliverability. The preferred site also removes the need for about 200 km of pipeline infrastructure, reducing both cost and environmental impact.

The selection enables planning, procurement and statutory assessment activities to progress for the Northern Water project, which is intended to supply industrial users across the Upper Spencer Gulf and Far North. The project is expected to support more than 4 000 jobs a year during construction and deliver billions of dollars in annual economic benefits if it proceeds to development.

At the same time, Northern Water has shortlisted two major consortia to advance to the next phase of the competitive procurement process. WaterConnector, comprising Acciona Construction Australia and Acciona Agua Australia, and Watermark, including Clough (Webuild Group), Fisia Italimpianti (Webuild Group), CPB Contractors and Sacyr Water, will now prepare detailed bids to design, build, operate and maintain the desalination plant and associated pipeline infrastructure.

Nearly 40 organisations responded to the initial registration of interest, with several consortia subsequently invited to lodge expressions of interest. A market-tested proposal will ultimately inform a final investment decision, expected in the 2026/27 financial year.

Project costs would be recovered through future commercial offtake agreements, principally with BHP.

South Australia hosts almost 70% of Australia’s economic copper reserves, but BHP’s operations are increasingly constrained by groundwater availability.

In February 2024, BHP joined the South Australian government and industry partners in announcing that the Northern Water project would progress to the next phase of study. 

“Global demand for copper is growing fast, and the opportunity for South Australia is significant," BHP asset president copper South Australia Anna Wiley said at the time.

“BHP has created an integrated copper province that we hope will bring the scale required to economically and sustainably produce and process more copper here in South Australia and deliver it to global customers.

“The Northern Water Supply Project will support our South Australian copper operations and growth ambitions.”