Aurizon secures performance-based contract with Rio Tinto Coal Australia
Aurizon and Rio Tinto Coal Australia (RTCA) have signed a new performance-based contract for the rail haulage of coal from Rio Tinto’s Clermont Mine operation to the Dalrymple Bay Coal Terminal (DBCT).
Aurizon Managing Director & CEO Lance Hockridge announced the ten year agreement, effective from July 2013, for haulage of up to 12 million tonnes per annum (mtpa). This replaces haulage capacity from an existing 2004 agreement between Aurizon (then QR Coal) and RTCA that expires at the end of June 2013.
“Aurizon is delighted to secure this haulage contract which leverages our scale in Queensland for the benefit of Rio Tinto,” he said.
“We’re pleased to support Rio Tinto’s ramp up of Clermont Mine which opened in 2010 and extending its long term presence in the Queensland coal business. This is a large-volume, high-performance, flexible contract that underlines the confidence in Aurizon’s ability to deliver on commitments to customers.”
When combined with the existing contract from Clermont Mine to the Abbott Point Coal Terminal, Aurizon will satisfy all haulage requirements for RTCA from this operation.
Aurizon Commercial and Marketing Executive Vice President Paul Scurrah, said Aurizon and Rio Tinto continue to have a strong relationship at both the commercial and operational levels.
”This agreement demonstrates our commitment to respond to Rio Tinto’s needs and work with them to contribute to the competitiveness of Rio Tinto’s coal business,” Mr Scurrah said.
“We have been working closely together to deliver an agreement that leverages Aurizon’s operational scale and gives RTCA the operational flexibility they require to maximise coal exports from the Clermont mine.”
The new contract supports RTCA’s significant investment in the Clermont thermal coal mine in central Queensland, and leverages Aurizon’s substantial assets in the Goonyella rail system.
Aurizon is Australia's largest rail freight company with services operating across five states. In 2011/12, Aurizon transported more than 250 million tonnes of freight, including coal, iron ore, other minerals, agricultural products and general freight. The company also operates and manages the 2,670 kilometre Central Queensland Coal Network that links mines to coal ports at Bowen, Mackay and Gladstone. Previously known as QR National, Aurizon has more than 147 years of rail freight industry experience.