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Rail carrier Queensland Rail has increased its presence in the Hunter Valley coal region by signing a long-term multi-million dollar contract with Felix Resources.

Under the deal, QR will haul 12 million tonnes of coal each year for 11 ½ years.

This new deal extends the relationship between QR and Felix from Queensland to New South Wales and also follows an 11 year contract signed by the rail operator and coal giant Peabody Energy in the region earlier this month.

QR will also invest $190 in locomotives and wagons for the new operation, bringing the amount of money it has invested in the Hunter Valley in the last month to $300 million.

QR Chief Executive Lance Hockridge says the Hunter Valley is a high priority for the company, and QR intends on expanding its influence in the region since beginning operations there in 2005.

“Since then [2005] we have significantly grown our market share by using the experience and expertise we have built up over many years in Queensland to offer stronger and more competitive arrangements than our competitor in the Hunter Valley,” Hockridge says.

“Our national footprint is continuing to grow in New South Wales and other markets and we will continue to explore new opportunities to enhance value for the Queensland government as our owner.”