BHP announces $1.5bn deal with Aurizon to move copper transport off SA roads

BHP has made a massive announcement around its huge South Australian copper assets, injecting $1.5bn into a transformative project set to benefit road users.

There will be fewer trucks on South Australian roads after a $1.5bn deal was inked to transport copper by rail.

More than 11,000 truck movements, spanning about 13 million kilometres, will be replaced in the partnership between BHP’s Copper SA division and transport company Aurizon.

Under the four contracts in place over the next decade, copper from BHP’s Olympic Dam, Carrapateena and Prominent Hill mines will be transported via rail between Pimba and Port Adelaide.

BHP Copper SA asset president Anna Wiley said the road, rail and port solution was “a strategic move delivering tangible benefits across the state”.

BHP’s Copper SA asset president Anna Wiley has hailed the $1.5bn project as transformative. Picture: Supplied by BHP.

“We’re talking about a logistics solution that strengthens our local operations and our international supply chains,” Ms Wiley said.

“I’ve had the privilege of seeing first hand the incredible scale and potential of our operations and in just over a year I’ve come to understand the immense ambition we share for South Australia’s copper future.”

On average, 244 bundles of copper cathode, each weighing more than 2500kg, are moved via freight per day.

“This translates to safer roads for our families and communities,” she said.

“It’s a smart move for safety, the environment, for regional communities and our business.”

BHP’s copper cathode is South Australia’s largest single export by value.

In addition to the five-day-a-week rail service, trucks will still be involved in the first and last sections of copper transport.

Aurizon subcontracted South Australian business Symons Clark Logistics, already a partner of BHP, to deliver the road transport component between Pimba and the mine sites.

Aurizon CEO and managing director Andrew Harding said the partnership was Australia’s largest ever road to rail conversion. Picture: Kevin Farmer

About 60 new jobs will be created within Aurizon, for “Australia’s largest ever road-to-rail conversion,” chief executive Andrew Harding said.

“That’s the benefit of efficient freight trains doing the heavy lifting over long distances combined with modern road haul delivering the first and last mile tasks,” he said.

Current rail infrastructure will support the project and would receive no upgrades in the immediate future, Mr Harding said, other than the construction of a depot at Pimba at a cost of about $40m.

“As the volumes keep moving from road to rail and the population increases, the infrastructure will need to be upgraded to stay at pace with demands,” he said.

Deputy Premier Susan Close said the project “not only facilitates the growth in copper export, but it is also about reducing emissions on our roads”.

Deputy Premier Susan Close said the partnership would facilitate growth in copper export. Picture: NewsWire/Kelly Barnes

In February, The Advertiser reported that BHP outlined a vision of more than doubling its copper production to about 650,000 tonnes a year by the mid 2030s.

SA is home to almost 70 per cent of Australia’s copper and demand for the mineral is forecast to grow by 70 per cent by 2050.

This would be driven by growth in copper uses such as house construction, household appliances and the transition to electric vehicles and renewable energy.

At the time, Premier Peter Malinauskas said if the expansion goes ahead, it would create “thousands upon thousands” of new jobs and inject an extra $9 billion of mining royalties into state coffers by 2050.

Originally published as BHP announces $1.5bn deal with Aurizon to move copper transport off SA roads