Alliance Aviation extends contract with BHP Billiton to serve Olympic Dam mine in Australia

20 September 2015 (Last Updated September 20th, 2015 18:30)

Australia-based Alliance Aviation Services has extended its contract to serve BHP Billiton's Olympic Dam mine in South Australia for another five years.

Olympic Dam

Australia-based Alliance Aviation Services has extended its contract to serve BHP Billiton's Olympic Dam mine in South Australia for another five years.

BHP Billiton's Olympic Dam is an ore body and consists of uranium oxide, copper, gold and silver.

Together with other new and extended contracts, the Olympic Dam contract will enable Alliance to maintain the level of total revenue.

According to Alliance, the new contract with Olympic Dam will allow the company to continue to service the operations of Olympic Dam and the local community with regular services between Adelaide and Olympic Dam.

Under the terms of the contract, Alliance will operate around 15 services a week with an option to increase this in case of an increased demand from either Olympic Dam or the community.

Alliance managing director Scott McMillan said: "Olympic Dam is an important partner of Alliance and this contract is material for Alliance.

"The existing contract originally started in 2007 and will expire in June 2016."

"Alliance is passionate about long-term relationships with all its customers and BHP Billiton is a part of this."

The companies have been working as partners to develop a new delivery model to reduce operating costs for Olympic Dam, which are achieved by simplifying and streamlining a customised product offering.

McMillan added: "The existing contract originally started in 2007 and will expire in June 2016."

Located 550km from Adelaide, the polymetallic underground mine Olympic Dam is the fourth largest copper deposit in the world and was previously owned by Western Mining. It produced 4,100t in the financial year ending June 2013.


Image: Main shafts of Olympic Dam Cu-U-Au-Ag mine in South Australia. Photo: courtesy of Geomartin.