Aurizon signs 65m tonne deal with BHP JV

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Rail operator Aurizon has signed a deal to haul up to 65 million tonnes of coal a year from the Queensland mines of BM Alliance Coal Operations (BMA) and BHP Billiton Mitsui Coal (BMC).

Aurizon, previously known as QR National, said the contract included all of the tonnage tendered by BMA/BMC for re-contracting in the Blackwater and Goonyella rail systems to the ports of RG Tanna in Gladstone, and Hay Point and Dalrymple Bay near Mackay.

The agreement is effective from July 1, 2015 for the Blackwater system and July 1, 2016 for the Goonyella system.

Aurizon chief executive Lance Hockridge said the company was committed to delivering BMA/BMC a superior service into the next decade.

“This is the largest contestable haulage contract in the Australian coal market in a decade,” he said.

“It represents about a quarter of the entire Queensland coal haulage market.”

The contract includes the haulage of coal from the Blackwater, Gregory, South Walker Creek, Poitrel, Riverside, Goonyella, Saraji, Peak Downs and Daunia operations.

Aurizon shares were two cents higher at $4.06 on Thursday.