Diversified mining group BHP has signed four long-term contracts worth about A$1.5-billion with Australian freight company Aurizon to deliver a fully integrated rail, road and port logistics solution supporting its copper operations in South Australia over the next decade.

The new arrangement, announced last week, will see copper concentrate and cathode from BHP’s Olympic Dam, Prominent Hill and Carrapateena mines transported by rail between Pimba and Port Adelaide, replacing an estimated 13-million kilometres a year of truck movements and cutting more than 11 000 heavy vehicle trips from South Australian roads.

“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,” said BHP Copper SA asset president Anna Wiley.

South Australian logistics firm Symons Clark Logistics, already working with BHP, has been sub-contracted by Aurizon to handle the road haulage between the mines and Pimba.

“Aurizon is thrilled to partner with BHP Copper SA on this integrated rail, road and port logistics package, and to support over the next decade, one of the Australia’s most significant resource operations,” Aurizon CEO Andrew Harding said.

“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 turn drives down transport emissions and delivers benefits for the broader community.”

The logistics solution reflects increased operational synergies from BHP’s 2023 acquisition of OZ Minerals.

“By value, BHP’s copper cathode is South Australia’s largest single export,” said Wiley. “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 is about delivering South Australian resources to the world.”

With global copper demand expected to rise by about 70% by 2050, driven by electric vehicles, renewable energy and data centres, the state is seen as a key contributor.

“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,” Wiley said. “BHP is moving at pace to progress new projects, investments and studies – building the foundations for long-term growth and value through Copper SA.”