Copper SA, a business part of BHP, has established a new partnership with Australian company Aurizon to operate an integrated rail, road and port logistics solution valued at approximately $1.5 billion.
Through four contracts, the pair will support copper operations in South Australia over the next decade.
The partnership sees Aurizon transport copper concentrate and cathode from BHP’s Olympic Dam, Carrapateena and Prominent Hill mines, as well as other inbound freight, via a shift to rail between Pimba and Port Adelaide.
Aurizon has sub-contracted South Australian operator Symons Clark Logistics to deliver the road transport component between Pimba and the mine sites.
BHP says this operation agreement marks the “most transformative shift” in Copper SA’s logistics since the asset’s creation.
The major shift will effectively replace an estimated 13 million kilometres of truck movements annually, removing more than 11,000 truck movements from SA roads each year.
BHP says this will lead to “meaningful improvements” in road safety, regional congestion and state emissions.
“This is Copper SA’s most significant logistics arrangement since the asset’s formation. The shift to more rail transport will improve road safety, lower emissions, create local business opportunities, and deliver significant synergies for our business,” BHP asset president of Copper SA Anna Wiley says.
“By value, BHP’s copper cathode is South Australia’s largest single export. 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.
“BHP is moving at pace to progress new projects, investments and studies – building the foundations for long-term growth and value through Copper SA.”
Aurizon CEO Andrew Harding says the company has been able to leverage its capability and SA footprint to deliver a freight on rail solution.
“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,” Harding says.
Deputy Premier Susan Close says with SA set to host around 70 per cent of Australia’s copper resource, BHP is well positioned to maximise the opportunity.
“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,” Close says.
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