BHP’s $1.5 billion copper deal in South Australia

BHP has locked in a $1.5 billion integrated logistics partnership with Aurizon to support its South Australian copper operations for the next decade.

The agreement will enable the movement of copper concentrate and cathode from Olympic Dam, Carrapateena and Prominent Hill via rail between Pimba and Port Adelaide, reducing reliance on road haulage and improving environmental and safety outcomes.

“This is Copper SA’s most significant logistics arrangement since the asset’s formation,” BHP copper SA asset president Anna Wiley said.

“The shift to more rail transport will improve road safety, lower emissions, create local business opportunities, and deliver significant synergies for our business.”

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

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

As global demand for copper is forecast to rise by 70 per cent by 2050, the partnership is well timed to enhance BHP’s export capability.

“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.”

Aurizon chief executive officer Andrew Harding welcomed the opportunity to support “one of Australia’s most significant resource operations” through an integrated rail, road and port logistics 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,” he said.

South Australian Deputy Premier Susan Close said South Australia hosts around 70 per cent of Australia’s copper resource and BHP is well positioned to capitalise on this 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 1 copper province that could play a significant role in meeting the predicted surge in international demand for copper required by the global energy transition,” she said.