"As we finalised all the details of the project in the context of current market conditions, it became clear that the right decision was to continue studies to develop a less capital intensive option to replace the underground mine at Olympic Dam, " said BHP chief executive Marius Kloppers.
The dam would be constructed more than 90m above ground level, as well as having an underground power house, tunnels, two reservoirs and a jetty on the shores of Loch Lochy.