Asciano builds Qld presence with Xstrata deal


Asciano today announced a 10 year deal to transport magnetite for Xstrata Copper worth $400 million

December 18, 2009

Asciano today announced a 10 year deal to transport magnetite for Xstrata Copper worth $400 million.

Under the deal, Asciano will haul 1.2 million tonnes of magnetite from Xstrata’s Ernest Henry Mining (EHM) at Cloncurry in north-western Queensland.

The contract requires Asciano to spend $80 million on two narrow gauge diesel powered trains and potentially construct a loading facility and rail infrastructure at the mine.

The bulk rail business will also use Pacific National’s existing intermodal maintenance facility in Townsville to service its rolling stock.

Asciano CEO Mark Rowsthorn says the contract demonstrates the company’s ability to leverage its successful Queensland coal operations.

"To be selected in a competitive tender process as the preferred operator with a proposal that sees us achieve our benchmark return on capital, long term tenure and take or pay arrangements is a clear indication that our performance based model is important to customers and is aligned to their rail haulage requirements," Rowsthorn says.


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