BHP and Aurizon, a freight rail transport company, will collaborate to deliver an integrated rail, road, and port logistics solution across the former’s South Australian copper operations over the next 10 years.
Under the $1.5 billion partnership comprising four contracts, the transportation of copper concentrate and cathode from BHP’s Olympic Dam, Carrapateena, and Prominent Hill mines in South Australia and other inbound freight will transition to rail between Pimba and Port Adelaide.
By shifting to an integrated rail, road, and port logistics solution, BHP is expected to replace an estimated 13 million kilometres of truck movements per annum. This is equivalent to eliminating more than 11,000 truck movements from South Australian roads per year.
“This is Copper SA’s most significant logistics arrangement since the asset’s formation,” BHP asset president Copper SA Anna Wiley said.
“The shift to more rail transport will improve road safety, lower emissions, create local business opportunities, and deliver significant synergies for our business.”
Symons Clark Logistics, a Port Adelaide based general transport and logistics company trusted by BHP, has been sub-contracted by Aurizon to deliver the road transport component between Pimba and BHP’s South Australian copper mines.
“By value, BHP’s copper cathode is South Australia’s largest single export,” Wiley 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.”
Aurizon chief executive officer Andrew Harding said the company is keen to support one of the 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,” Harding 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.”
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