QR National has expanded its long-term coal haulage agreement with Gloucester Coal in the Hunter Valley. The revised contract provides for an extra 800,000 tonnes of coal per year from the Duralie mine for Gloucester Coal’s domestic business.
The original contract between Australia’s rail freight giant and the Gloucester Basin-based mining company began in 2003. The deal enabled the haulage of 1.8 million tonnes per annum (mtpa) through to this year.
The new contract provides for up to 2.6 mtpa until 2016. This takes total revenue for the contract - from 2003 to 2016 - to more than $75 million.
QR National chief executive officer Lane Hockridge said the company was focussed on performance-based contracts, underpinned by reliability, certainty of supply, and safety.
Gloucester Coal was QR National’s first customer in the Hunter Valley and integral to QR establishing a base in the New South Wales coal haulage market, Hockridge said.
“Gloucester Coal’s decision to renew their contract with QR National is a mark of strong confidence in QR National’s operational performance and safety record,” Hockridge stated.
Image: Glouchester Coal