Logistics, Ports & Terminals, Mining and Heavy Industries

Aurizon nets long-term extension for BHP’s Mt Arthur coal

Coal wagons Aurizon. Photo: Aurizon

Rail operator Aurizon has secured a long-term contract extension with BHP Billiton which will see it haul coal from the miner’s Mt Arthur coal mine through to June 2028.

Aurizon announced the long-term contract on March 14.

The contract is set up to allow for a potential increase in coal haulage volumes from the current 18mtpa to a maximum of 26mtpa.

The operator said this “varied” contract delivers a modern and flexible arrangement for both sides.

“Aurizon is delighted to extend its long-term relationship with BHP Billiton in New South Wales,” the operator’s executive vice president for commercial & marketing Mauro Neves said.

“BHP Billiton was Aurizon’s foundation customer in the Hunter Valley when we commenced operations in the region in 2005.

“The recent opening of our $180 million Hexham Train Support Facility in Newcastle is a signal of our commitment and confidence in the local coal industry.

“The facility has strengthened our business to support the growth and future success of our customers.”

Aurizon, which used to be part owned by the Queensland Government, has grown in the Hunter Valley over the last decade. The company hauled 42.9 million tonnes of coal in the region during the 2014/15 financial year.

BHP’s Mt Arthur mine is near Muswellbrook, roughly 130km northwest of Newcastle, where the coal is exported.

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