The contract, which will begin on January 1, 2012, and completes the commercial arrangements for rail and port to support 3 million tonnes per annum of coal from the Middlemount mine, follows the finalisation of the below-rail contract with QR Network in April 2010 and complements the existing port contract.
Macarthur Coal chief executive and managing director Nicole Hollows said alternative infrastructure options were necessary, given long-term demand projections for coal.
“This contract provides the Middlemount mine with access to expanded port capacity and diversification from the existing Dalrymple Bay Coal Terminal,” Hollows said.
“Middlemount Coal Pty Ltd has appointed an alliance to design and construct a dedicated rail loop to service the Middlemount mine. Subject to approvals, the loop is expected to be commissioned in the second half of 2011.
“As the major shareholder in the Middlemount mine, Macarthur Coal looks forward to being one of the first users of the Goonyella-Abbot Point Expansion.”
This contract is the first to be announced in Queensland where the operation will be via the Northern Missing Link to Abbot Point.
The signing of this 10-year agreement will generate additional revenue of more than $320 million for Asciano. The company will haul the 3Mtpa from the new Middlemount mine complex using new diesel powered trains.
“This is a significant step in Asciano’s growth strategy as it demonstrates our ability to meet our customers’ needs in Queensland and places us in prime position to take advantage of further growth tonnages from coal producers who have committed to port capacity at Abbot Point,” Asciano managing director and chief executive officer Mark Rowsthorn said.
“Asciano has exceeded its first year operations target by hauling over 14 million tonnes of coal in Queensland.
“Our unique commercial structure continues to drive positive performance outcomes for all our customers and this is being recognised by both existing customers and potential customers in Queensland.
“Asciano has now secured over 45 million tonnes of coal haulage contracts in Queensland which further reinforces our ability to deliver our Queensland coal strategy in the medium term.”
Macarthur’s shares were down by 2c to $12.10 in early morning trade while Asciano’s were down by 0.5c to 1.615.
