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Aurizon secures haulage contract with Xstrata for Rolleston
The Aurizon contract supports Xstrata’s mine expansion at Rolleston from the current 9.4 million tonnes per annum (mtpa) to 14.6 mtpa commencing December 2014, with provision for Aurizon to haul expanded output volumes up to 20 mtpa in future years.
Tonnages will be hauled to RG Tanna Terminal in Gladstone and the new Wiggins Island Coal Terminal (WICET) which is under construction near Gladstone.
“Aurizon is delighted to extend its long-term relationship with Xstrata Coal where we will provide haulage services for more than 80% of its Queensland business,” Aurizon Managing Director & CEO Lance Hockridge said.
“Aurizon has built operational credibility with Xstrata in recent years on key performance criteria of ontime running, volume requirements including surge capacity, and safety performance.
“Xstrata ran a competitive bidding process for this large-scale contract for Rolleston, so Aurizon is extremely pleased with this vote of confidence in our continued high performance on this haul.”
Aurizon’s other long-term haulage contracts with Xstrata service the Newlands, Collinsville and Oaky Creek mines, with all of these contracts continuing to September 2021.
Together with the new 14.6 mtpa contract for Rolleston starting December 2014, this will take total contracted tonnages with Xstrata in Queensland to more than 31 mtpa.
The contract, which commences from 1 December 2014 (or the completion of WICET, whichever is earliest), will run to 30 September 2025.
Aurizon will invest up to $215 million in rolling stock to support this haul, dependent upon final fleet configuration.
Given the significant increase in haulage tonnages under the new contract, Aurizon’s above-rail coal business is proposing that the 110km Bauhinia rail spur that services Rolleston be electrified to harness the operational and cost benefits of electric trains. All services for Rolleston are currently provided by diesel-hauled trains.
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.
For more information:
Chris Vagg - INVESTORS Mark Hairsine - MEDIA
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Email: media@aurizon.com.au