Under the new contract, Peabody will have the flexibility to rail coal from any of its four mines in the Goonyella system to port to match its needs, dependent on production, demand and supply chain dynamics.
The arrangement is possible because of QR National Coal’s scale of operations in the Goonyella system, QR National Coal executive vice-president Marcus McAuliffe said.
Peabody is an important customer and the contract demonstrated its confidence in QR National Coal’s ability to deliver, he said.
“QR National Coal has had a strong relationship with Peabody since 2004 and we have demonstrated our ability to deliver coal safely and reliably and to grow our capacity to match their growing operations,” he said.
“This surety of service is particularly relevant in the complex Goonyella coal system, where flexibility and reliability are keys to coal delivery.
“This contract enables us to take full advantage of QR National Coal’s scale of operations, expertise and understanding of the Goonyella supply chain to provide the level of flexibility and surety of service that Peabody requires in this high-demand, highly competitive coal market.”
The contract is an extension of an existing arrangement and complements QR National Coal’s relationship with Peabody Energy in the Hunter Valley and in Queensland’s West Moreton Surat Basin coal system.
QR National managing director and chief executive Lance Hockridge said the announcement followed a series of major contract wins for QR National Coal in Queensland and New South Wales.
“Since June last year, QR National Coal has signed new long-term contracts for in excess of 85Mtpa, with revenue value of almost $5 billion,” he said.
QR National Coal also hauls coal from Peabody’s Wilkie Creek mine in the Surat Basin to the Port of Brisbane.