A South Australian family owned freight business has won an initial three-year contract with OZ Minerals to service the Carrapateena copper mine north of Port Augusta.
The contract, which includes freight distribution in Adelaide and daily line-haul services taking supplies out to the mine, means the company will be able to add 10 new jobs to its 80-strong workforce and create more opportunities for other Upper Spencer Gulf businesses.
Energy Logistix supports tier one mining, resources, energy and defence customers to manage critical supply chains, moving supplies from across the world to remote areas of Australia.
Managing director Shaun Williamson said Energy Logistix had been interested in engaging with OZ Minerals for a number of years.
“We looked at what customers were going to be around in the long term. OZ Minerals is based in South Australia and has a good reputation. From our point of view this was a good fit. We then had to go about the process of ensuring we could prove it and here we are,” Shaun said.
“The reason we were so keen is because they align with the kind of customer we want to work with now and in the future – sustainable businesses.”
By way of example, Energy Logistix has introduced Euro6 engines in their Kenworth Trucks which deliver 25% more energy efficiency compared with industry standard prime movers.
These engines and trucks won’t be released to full production into market until 2025, but Energy Logistix already had a good partnership with Kenworth “to get hands on first production”.
“It’s the most efficient CO2 emissions asset in the country,” Shaun said.
Energy Logistix had calculated its emissions and has a goal of net zero emissions, initially through buying offsets, and through using more efficient trucks as they become available in the longer term. The company continually looks at ways to reduce its environmental impact, irrespective of this contract with OZ Minerals.
Energy Logistix sustainability plan also requires the company to spend 95 per cent of revenue with South Australian businesses.
Using remote monitoring technology to check truck movement and driver fatigue, Energy Logistix is also committed to the safety of its crew and the remote communities it operates in.
Winning the contract was part of the company’s long-term strategy to align with like-minded tier one primes.
“It’s a win for all small and local businesses. In turn we are guaranteeing that 95 per cent of our revenue will stay with local business,” Shane said. “The money will stay in this state.”
OZ Minerals explores for and mines mainly copper, an important mineral for a low carbon future and economic wellbeing.
Energy Logistix made sure it was “ready, capable and able when OZ Minerals released the tenders for supply chain and logistics for Carrapateena.”
“We went about building capability even before the EOI,” Shaun said.
“When the tender came out, we were desperate to get on to it. We spent a lot of time, money and resources ensuring that we had a good idea about what they were looking for.
“The way I see it, before COVID the world was globalised and supply chains were too. But now it has become more localised. You need to have partnerships and relationships locally to make sure you can deliver. We used that to our advantage.”
“We were able to ensure we met their requirement to create stakeholder value,” Shaun said, adding that winning the contract “proved to the market that we are 100 per cent committed to the longevity and sustainability to our business”.
While the OZ Minerals contract is not the largest contract that Energy Logistix has worked on, “from a visibility point of view, it was key for us to win it.”
“It was more about the longevity of the contract and ensuring we are embedding ourselves in a way that they liked to be served,” Shaun said. “We can grow together and share knowledge.”
Carrapateena is one of the biggest mining projects in South Australia in the last decade and is located in the highly prospective Gawler Craton. Carrapateena has a mine life of ~20 years and a block cave expansion is underway to unlock its potential to be a multi-generational, lowest quartile cash cost producing province.
OZ Minerals has partnered with ICN and releases work packages on the Carrapateena portal as they become available.