Asciano announces today that it has executed a long term, take or pay contract with Anglo American Metallurgical Coal Pty Ltd for the movement of 3.5 million tonnes per annum of coal from their Foxleigh coal mine in Queensland commencing 1 July 2012.
The signing of this 9.5 year agreement will generate additional revenue of over $200m over the term of the contract.
On 15 June 2010, Asciano announced a contract with Anglo American Coal for 10.9 million tonnes per annum from the German Creek facility commencing 1 January 2012. Today’s announcement adds a further 3.5 million tonnes per annum to that rail haulage contract. As at 2012, Anglo American Coal will have over 20 million tonnes per annum contracted to Pacific National in Queensland.
Asciano Managing Director and Chief Executive Officer, Mark Rowsthorn said, “The inclusion of the Foxleigh Coal Mine tonnes within the Anglo Amercian Coal agreement is a significant vote of confidence in Asciano’s ability to deliver a premium service to Anglo Amercian Coal.”
“Asciano has proven its ability to deliver new rolling stock and operations that meet our customers’ implementation deadlines. We now have 10 trains in operation in the Goonyella and Blackwater systems and a further 6 train sets under construction for deployment from 1 January 2012 to meet an annual contracted tonnage in excess of 49 million tonnes.
“Anglo American Coal was looking to add further flexibility to the rail haulage approach supporting their portfolio of mines in the Goonyella system. The result is a performance based contract that provides Anglo American with the ability to maximise their rail haulage plans by mixing and matching their mine and port haulage requirements.
“Our unique commercial structure is driving positive performance outcomes for all our customers and this is being recognised by both existing customers and potential customers in Queensland.
“Our success to date also reinforces our ability to deliver on our Queensland growth targets”, Mr Rowsthorn said.