AusRAIL, Market Sectors

Aurizon signs with Xstrata for Rolleston haulage

<span class="" id="parent-fieldname-description"> Aurizon has scored another win in the Bowen Basin over rival PN Coal, snaring a long-term contract with Xstrata Coal for production increases at Rolleston mine, 275km west of Gladstone. </span> <p>Following its success with the BMA and BMC haulage contracts, Aurizon’s freshest catch adds to the dominance exhibited by the Queensland-based operator in its home state.</p><p>The new contract supports Xstrata’s mine expansion, which will take Rolleston’s production from 9.4mtpa to 14.6mtpa.</p><p>The contract runs from December 2014 to 30 September 2025 and includes a provision for Aurizon to increase volumes to 20mtpa.</p><p>Rolleston’s coal will be hauled to RG Tanna terminal in Gladstone and the new Wiggins Island Coal Terminal (WICET), which is currently under construction.</p><p>The Rolleston contract sees Aurizon’s share of Xstrata’s Queensland coal haul increase to 80%. Aurizon’s other long-term haulage contracts with Xstrata service the Newlands, Collinsville and Oaky Creek mines, with all of these contracts continuing to September 2021.</p><p>Together with the new 14.6mtpa for Rolleston, total contracted tonnages with Xstrata in Queensland will rise to 31mtpa.</p><p>Aurizon will invest up to $215 million in rolling stock to support this haul, dependent upon final fleet configuration.</p><p>All services for Rolleston are currently provided by diesel-hauled trains. Aurizon said it wants the 110km Bauhinia rail spur that services Rolleston to be electrified, to deliver increased efficiency with electric trains.</p><p><br />&nbsp</p>