Aurizon has announced it has secured two major new coal haulage agreements in Queensland.

The first agreement will seen Aurizon and Xstrata coal enter into a long-term, performance based coal haulage contract.

The Aurizon contract supports Xstrata’s mine expansion at Rolleston from the current 9.4 million tonnes per annum (mtpa) to 14.6 mtpa commencing December 2014, with provision for Aurizon to haul expanded output volumes up to 20 mtpa in future years.

Tonnages will be hauled to RG Tanna Terminal in Gladstone and the new Wiggins Island Coal Terminal (WICET) which is under construction near Gladstone.

“Aurizon is delighted to extend its long-term relationship with Xstrata Coal where we will provide haulage services for more than 80% of its Queensland business,”  Aurizon Managing Director & CEO Lance Hockridge said. 

Under the second agreement, Aurizon will extend its long-term contract with coal producer Ensham, with a new performance-based agreement of 5.5 million tonnes per annum to be moved between Ensham’s Central Queensland mine and the Port of Gladstone.

“While we had an existing agreement until 2015, Ensham and Aurizon decided to re-commit to our business relationship now, as the new agreement will generate increased value for both parties,” Aurizon’s Vice President Paul Scurrah said.

“Under this new arrangement Aurizon can better meet Ensham’s demand for services to align with its mine production in both the short and long term.”

Ensham Director, Mr Koji Arai said the new agreement is an important step in securing the long term future of the mine.

“This agreement aligns Ensham’s haulage arrangements with the changing needs of the business,” Mr Arai said.