The new contract allows Aurizon to haul up to 26 million tonnes of coal annually
Rail freight operator Aurizon has extended its coal haulage contract with BHP Billiton for its Mt Arthur coal mine in New South Wales’ Hunter Valley to June 2028.
Under the existing contract Aurizon hauls 18 million tonnes per annum (mtpa) to the Port of Newcastle but the new contract could see this figure rise up to 26 mtpa.
“Aurizon is delighted to extend its long-term relationship with BHP Billiton in New South Wales,” Aurizon EVP Mauro Neves says.
“BHP Billiton was Aurizon’s foundation customer in the Hunter Valley when we commenced operations in the region in 2005.
“The recent opening of our $180 million Hexham Train Support Facility in Newcastle is a signal of our commitment and confidence in the local coal industry.
“The facility has strengthened our business to support the growth and future success of our customers.”
Apart from Aurizon and BHP Billiton, the move is expected to reap benefits for Mt Arthur as well, which saw a third round of job cuts since mining system last peaked in 2012.
This long-term deal comes less than a year after Aurizon extended haulage contracts with Dawson and Callide coal mines in Queensland.