Aurizon could haul another 20 million tonnes of coal a year as part of a new contract with Xstrata
March 14, 2013
Rail freight company Aurizon could haul up to 20 million tonnes of coal
a year as part of a new long-term contract with mining company Xstrata.
Aurizon today announced it had won a contract to haul coal from Xstrata’s Rolleston mine, expected to increase production by more than five million tonnes of coal a year to 14.6 million tonnes from late 2014.
According to Aurizon,
the contract
also has provision for Aurizon to haul expanded output volumes of up to 20 million tonnes a year 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.
The contract, which commences from December 1, will run to September 30, 2025.
Aurizon plans to invest up to $215 million in rolling stock to support the haul, dependent on final fleet configuration.
Due to increase in haulage tonnages under the new contract, Aurizon’s above-rail coal business is also proposing that the 110 kilometre Bauhinia rail spur that services Rolleston should be electrified to harness the operational and cost benefits of electric trains.
All services for Rolleston are currently provided by diesel-hauled trains.
Xstrata ran a competitive bidding process for the large-scale contract.
Aurizon’s other long-term haulage contracts with Xstrata service the Newlands, Collinsville and Oaky Creek mines, and will continue to September 2021.
With the new contract for Rolleston starting December 2014, total contracted tonnages with Xstrata in Queensland will be more than 31 million tonnes a year.