BHP Billiton Olympic Dam mill breakdown to reduce copper production

BHP Billiton says it expects a mill which broke down at Olympic Dam in late January will be out of production for six months.

It said copper production would be reduced until repair work was completed.

The Svedala mill was used for surface processing work at the site in outback South Australia and suffered an electrical failure on January 28.

A maintenance review showed damage to a motor stator coil and the company said repair work would take months.

The Svedala mill is the biggest of three mills at the site. The two other grinding mills would be used at full capacity in the months ahead, the company said.

BHP Billiton said it now planned to bring forward some maintenance and preparatory work for an underground extension of its southern mine area at Olympic Dam.

A return to full production at Olympic Dam was expected by the end of the September quarter, it said.