BHP’s Copper SA business has partnered with Australian company, Aurizon, to deliver a solution through four contracts valued at approximately $1.5 billion.
The integrated road, rail and port logistics project will support BHP’s copper transport operations in South Australia over the next decade.
Under the arrangements, the transport of copper concentrate and cathode from BHP’s Olympic Dam, Carrapateena and Prominent Hill mines, as well as other inbound freight, will shift to rail between Pimba and Port Adelaide.
Symons Clark Logistics has been sub-contracted by Aurizon to deliver the road transport component between Pimba and the mine sites.
BHP Asset President Copper SA, Anna Wiley, said this agreement marks the most transformative shift in Copper SA’s logistics since the business’ creation.
“The shift to more rail transport will improve road safety, lower emissions, create local business opportunities and deliver significant synergies for our business,” she said.
“This partnership forms a critical link between our operations in the state’s far north and our path to market at the Port of Adelaide. It’s about delivering South Australian resources to the world.
“Global demand for copper is rising fast and, with two-thirds of Australia’s high-quality copper resources, South Australia is uniquely positioned to meet it.”
The major shift to an integrated logistics solution will effectively replace an estimated 13 million kilometres of truck movements annually – removing more than 11,000 truck movements from SA roads per year.
Deputy Premier of SA, Susan Close, said it will deliver meaningful improvements in road safety, ease regional congestion and significantly reduce emissions across the state.
“The partnership BHP has announced today is a consolidated intermodal transport solution, which will reduce congestion on regional roads, and demonstrates their long-term commitment to realising a Tier One copper province that could play a significant role in meeting the predicted surge in international demand for copper required by the global energy transition,” she said.
“South Australia is host to around 70 per cent of Australia’s copper resource, and BHP is well positioned to help maximise this opportunity.”
Aurizon CEO, Andrew Harding, said the organisation is thrilled to partner with BHP Copper SA and to support one of Australia’s most significant resource operations over the next decade.
“We have been able to leverage our significant capability and existing footprint in South Australia to deliver a solution that puts the majority of freight onto rail, which in turns drives down transport emissions and delivers benefits for the broader community,” he said.
“As Australia’s largest rail freight business, we see a big growth opportunity in South Australia especially with future-facing commodities such as copper that play such a critical role in the global energy transition.”
In other news, national transport company, XFM, has taken delivery of three new B-doubles.
