Rail operator Aurizon has announced an 8.7 million tonne per annum coal haulage contract with energy generator AGL.
The contract will see Aurizon delivering coal to AGL Macquarie, from Peabody’s Wilpinjong mine and Glencore’s Mangoola mine, via ARTC track.
AGL Macquarie includes the Bayswater and Liddell power stations, and also consumes coal from BHP Billiton’s Mt Arthur coal mine, delivered by conveyor.
The rail delivery contract is currently held by Pacific National. Aurizon will take over that business from July 2017.
“We’re very pleased to form a long-term, commercially sustainable partnership with a high-calibre customer in AGL Macquarie,” Aurizon executive vice president Mauro Neves said.
“AGL Macquarie has a long and proud history operating in the Hunter Valley over a period of some 40 years.
“Aurizon is proud to be entrusted with AGL Macquarie’s business as we continue to demonstrate our ability to deliver flexible, customer-focused rail solutions in the region.”
Aurizon, which has its roots in Queensland, has enjoyed significant growth in the Hunter Valley.
The company has invested roughly $500 million in trains and facilities in the region, and hauled 43.8 million tonnes of coal there in FY16, Neves said.
“We now have a team of around 330 local employees on the ground in the Hunter and our business continues to gain momentum,” he said.
“This contract is further evidence of our commitment and confidence in the New South Wales coal industry.”
Aurizon says the AGL Macquarie volumes will bring its NSW tonnage to roughly 55 million tonnes per annum.