Xstrata is pushing ahead with its expansion of Rolleston coal mine in Queensland, signing a deal with Aurizon that will see haulage increase to 20 million tonnes per year.
The expansion is set to double the amount of coal mined, with current production levels sitting at around 9.4 million tonnes.
Under the contract announced today, tonnages will be hauled to RG Tanna Terminal in Gladstone and the new Wiggins Island Coal Terminal which is under construction in Gladstone.
Aurizon chief Lance Hockridge said he was pleased his company won the bid.
“Xstrata ran a competitive bidding process for this large-scale contract for Rolleston, so Aurizon is extremely pleased with this vote of confidence in our continued high performance on this haul.
Aurizon provides Xstrata with 80% of its haulage services in Queensland.
Aurizon said it will invest up to $215 million in rolling stock to support the haul, and wants the 110km Bauhinia rail spur that services Rolleston to be electrified.
All services for Rolleston are currently provided by diesel-hauled trains.