The new contract supports Xstrata’s mine expansion at Rolleston from the current 9.4 million tonnes per annum to 14.6Mtpa starting in December 2014, with provision for Aurizon to haul expanded output volumes up to 20Mtpa.

Aurizon is Australia's largest rail freight company with services operating across five states. In 2011-12, Aurizon transported more than 250Mtpa of freight with coal representing 180Mtpa.

Tonnages will be hauled to RG Tanna Terminal in Gladstone and the new Wiggins Island Coal Terminal, which is under construction near Gladstone, Aurizon managing director Lance Hockridge said.

“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,” he said.

“Aurizon has built operational credibility with Xstrata in recent years on key performance criteria of on-time 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 in Queensland, with all of these contracts continuing to September 2021.

Together with the Rolleston contract, this will take Aurizon’s total contracted tonnages with Xstrata in Queensland to more than 31Mtpa.

The contract will run to 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.