MARKETS

Rio Tinto awards coal haulage contracts

ASCIANO'S Pacific National has won a 10-year contract to haul 0.5 million tonnes a year of coal f...

Lou Caruana
Rio Tinto awards coal haulage contracts

The performance-based, take or pay contract will involving the hauling of coal to Dalrymple Bay and Hay Point near Mackay using the new Goonyella electric rail system and complements the existing contract for Kestrel on the Blackwater system.

Asciano managing director and chief executive officer John Mullen said: “We are extremely pleased to be able to expand our relationship with Rio Tinto Coal Australia in Queensland after the successful commencement of our initial contract in 2010.

“This contract increases Asciano’s annualised contract coal tonnage in 2014 to 178Mt.

“This contract further supports our investment in a new maintenance facility in Nebo which is presently under construction and on track to be completed in July 2012.”

QR National has also signed a 10-year performance-based contract with Rio Tinto Coal Australia to haul 3Mtpa from the Rio Tinto Blair Athol/Clermont operations to the Abbot Point coal terminal from January 2012.

The new contract supports Rio Tinto’s investment in the Clermont thermal coal mine in central Queensland, and leverages QR National Network’s $1.1 billion Goonyella to Abbot Point expansion project.

The GAP project, which connects the Goonyella and Newlands coal systems, was officially opened by acting Premier Andrew Fraser and QR National chairman John Prescott on Monday.

The new long-term contract is the second secured by QR National for coal haulage via the GAP, following an announcement in February 2011 of a 10-year contract with Jellinbah Resources to haul up to 6Mtpa from the Lake Vermont mine to Abbot Point.

QR National managing director and CEO Lance Hockridge said Rio Tinto was an important customer and QR National’s operational scale provided Rio Tinto surety, economies of scale and operational flexibility.

“We have a strong relationship with Rio Tinto Coal at both the commercial and operational levels and this contract enables us to build on that with a high performance, take or pay contract,” he said

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