BHP’s $1.5b deal with Aurizon

BHP (ASX: BHP) owned Copper SA has partnered with Aurizon to deliver integrated rail, road and port logistics solutions to support its South Australian copper operations.

Under the agreement, the transport of copper concentrate and cathode from the Olympic Dam, Carrapateena and Prominent Hill mines will shift to rail between Pimba and Port Adelaide.

South Australian based Symons Clark Logistics, already a trusted BHP partner, has been sub-contracted by Aurizon to deliver the road transport component between Pimba and the mine sites.

The major shift to an integrated rail, road and port logistics solution will effectively replace an estimated 13mkm of truck movements annually — removing more than 11,000 trucks from South Australian roads annually.

This shift will deliver meaningful improvements in road safety, ease regional congestion and significantly reduce emissions across the state.

With the global copper demand expected to increase by more than 70% by 2050, due to the metals use the energy transition, the partnership marks a milestone for Copper SA and unlocks substantial long-term value for the state’s globally recognised copper industry.

BHP Copper SA asset president Anna Wiley says the partnership is about delivering South Australia’s resources to the world.

“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.

“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 chief executive Andrew Harding says the partnership will support one of Australia’s most significant resource operations for 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.”