An integrated rail, road and port logistics arrangement between BHP’s Copper SA business and rail freight operator Aurizon is set to replace an estimated 13 million kilometres of truck movements annually.
According to BHP, this will remove more than 11,000 truck movements from South Australian roads per year.
The partnership will deliver logistic operations through four contracts valued at approximately $1.5 billion, to support BHP’s copper 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.
Anna Wiley, BHP Asset President Copper SA said, “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.
“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.”
She added that 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 these needs.
Andrew Harding, CEO at Aurizon added, “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.
“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.”
South Australian business Symons Clark Logistics has been sub-contracted by Aurizon to deliver the road transport component between Pimba and the mine sites.
great idea, all states need to follow