QR National signs a 10-year contract with Jellinbah Resources for 6 million tonnes per annum of coal between Lake Vermont mine and Abbot Point
<b<February 23, 2011
QR National has signed a 10-year contract with Jellinbah Resources to haul up to 6 million tonnes per annum of coal from Lake Vermont mine to Abbot Point Coal Terminal (APCT).
The contract begining January 2012, will generate revenue in excess of $600 million, in addition to Track Access Revenue.
It is QR National’s first coal haulage contract via the Goonyella to Abbot Point Expansion (GAPE) project which includes 69 kilometres of new track known as the Northern Missing Link.
This project will connect the Goonyella and Newlands coal systems, with the first trains expected to run from January 2012.
The expansion is expected to double the coal capacity railed to Abbot Point for export to 50 mtpa and offer risk mitigation benefits to QR National, its customers and coal consumers.
Separate contracts have been signed with customers for access to this track.
QR National Managing Director and CEO Lance Hockridge says the performance-based contract with Jellinbah Resources reflects QR National’s improved commercial focus and its ability to deliver.
“These new-style performance-based contracts QR National is offering its customers gives them assurance that we are prepared to share the risk and that we are prepared to back our performance,” Hockridge says.
“QR National is committed to delivering quality services in long-term partnerships with its customers in Queensland and in New South Wales, leveraged off the size, scale and expertise of our coal haulage business.”
QR National’s Executive Vice President and CEO Coal Customers and Strategy Curtis Davies adds that
the Lake Vermont contract represents 12 per cent of the total volume capacity for GAPE.
“Railings will commence at 2 mtpa in 2012 and ramp up to 6 mtpa by 2015,” he says.
“This long-term arrangement builds on QR National’s existing contract with Jellinbah Resources to haul 3.25 mtpa of coal from the Lake Vermont mine north to Dalrymple Bay Coal Terminal and south to the Port of Gladstone.
“It reflects the growing partnership between the parties after last year’s Jellinbah East mine contract renewal,” Davies says.
“I am delighted to be able to build on the strong relationship we have with Jellinbah Resources and to work with them to grow their business on the expanded coal rail network provided by GAPE.
“Our scale and scope along with a demonstrated ability to provide reliable service has given Jellinbah Resources confidence in our capability and has been instrumental in securing this partnership.”