Aurizon to increase investment in north-west Queensland with new MMG contract
Aurizon has signed a five year agreement to rail 2.28 million tonnes (up to 480,000 tonnes per annum) of lead and zinc concentrates for MMG Limited (MMG) from MMG’s Dugald River mine near Cloncurry to the Townsville port.
The performance-based agreement is effective from 2015 for five years, with an option to extend for a further five years. The haulage agreement is conditional on the mine proceeding, with MMG expected to conclude full project financing arrangements in early 2013.
Aurizon Commercial and Marketing Executive Vice President Paul Scurrah said under the agreement Aurizon would invest in new infrastructure and wagons for use in the North-West Queensland region.
“Aurizon will be building a new train ‘road’ in our Stuart Yard at Townsville. This will increase the efficiency of our operations by allowing more product to be transported to the yard on a single train service,” he said.
Mr Scurrah said Aurizon was delighted to welcome MMG as a new customer and to increase its investment in the north-west Queensland region.
“Our company already plays an important role in the regional economy in north-west Queensland, and this new capital investment further demonstrates our commitment to our customers and the community in the region,” he said.
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.