Aurizon drives down emissions with rail-based logistics solution for BHP Copper South Australia
Australia’s largest rail freight business Aurizon has been selected to deliver an integrated rail, road and port logistics solution for BHP’s globally significant Copper South Australia province.
Aurizon will move around 1.3 million tonnes per year for up to 15 years, servicing BHP’s mining and refinery/smelter operations at Olympic Dam, Prominent Hill and Carrapateena mines. This includes two-way loading: mine inputs consolidated at Adelaide Port as well as copper concentrate and cathode from the mine complex for export.
And by moving the majority of tonnes from road to rail for the 500-kilometre haul between Adelaide and a new terminal in north of the state at Pimba, we’ll see a major reduction in truck movements and carbon emissions. This is win-win outcome not only for our valued customer of BHP but also for South Australia’s (SA) economy, road safety, the environment and the broader community.
Once fully operational, Aurizon will effectively replace an estimated 13 million kilometres1 of truck movements annually, with an estimated reduction in carbon emissions of approximately 20,000 tonnes a year1 compared to the existing road-based operation. That’s equivalent of removing about 11,000 truck movements1 from SA roads per year.
Copper is a future-facing commodity needed for modern economies and also used in telecommunications, renewable energy and electric vehicles, so it is critical to global decarbonisation. Global demand is growing significantly and South Australia – with an estimated two thirds2 of Australian copper reserves – is ideally positioned to capture this growth.
Aurizon’s logistics task is based on BHP's current Copper SA production (FY2024: 322,000 tonnes) and we are well positioned to scale up and capture additional volumes should BHP’s Copper SA asset grow further in the years to come.
Aurizon has leveraged its extensive regional footprint to secure the work, including recently acquired port terminal assets at Port Adelaide (Berth 29) and the rail business in South Australia and the Northern Territory, including the Tarcoola to Darwin rail line, which was acquired in 2022. A new intermodal freight terminal will be constructed by Aurizon at Pimba, near the mining province, to support the logistics solution.
The Pimba terminal will allow Aurizon to convert the majority of BHP volumes from road to rail, with rail used in both directions for the 500-kilometres between Pimba and Adelaide and trucking providing ‘first mile’ and ‘last mile’ services to mines and terminals. This is the key to the significant reduction in carbon emissions and truck movements required for BHP’s logistics requirements.
Aurizon has a growth strategy for its Bulk haulage and Containerised Freight businesses, building on the solid platform of traditional businesses for the Company of coal haulage and the Central Queensland Coal Network. Aurizon has been investing in strategic assets and in new resource-rich regions including South Australia and the Northern Territory as it taps into growing markets for future facing commodities such as grain, magnetite, copper, cobalt and rare earths.
Andrew Harding, Managing Director & CEO, Aurizon
“Aurizon is delighted to secure these large-scale long-term contracts with BHP’s Copper SA, supporting the success and expansion of one of the nation's most significant resources.
These contracts represent a major milestone in the delivery of Aurizon’s Bulk strategy. It demonstrates the growth opportunities available for our Bulk business moving into new geographies and expanding markets for future-facing commodities such as copper, where the global demand is projected to increase significantly.
Aurizon is also pleased to deliver a more sustainable transport solution for BHP Copper SA and for South Australian communities. The shift to more rail transport means fewer trucks on public roads, delivering improved safety and reduced congestion, a significantly smaller carbon footprint and an ability to scale up quickly with the potential for additional train services as BHP continues to expand its SA Copper operations.”
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Aurizon Corporate Affairs: media@aurizon.com.au
1 All calculations assume the consumption of mineral diesel for both the existing road and proposed intermodal solution.
2 Geoscience Australia 2022