QR National forms deal with miners to build rail

Finance

Publishing Date: 05 Sep 2011 12:15pm GMT
Author: Mining Journal

QR National, the Australian freight haulage operator, said it signed an agreement with a consortium of coal miners worth A$900 million (US$952 million) to construct rail to an export terminal in Gladstone, Queensland.

Miners Xstrata, Aquila Resources Ltd, Bandanna Energy Ltd, Caledon Resources plc, Northern Energy Corp, Yancoal Australia Ltd, Wesfarmers Curragh and Cockatoo Coal Ltd reached the agreement with QR to proceed on stage one of the Wiggins Island rail project.

QR said construction on the initial 27Mt/y port was due to start in early 2012, with first railings scheduled for mid-2014 and aligned with port capacity. All remaining works would be due for completion by March 2015, the company added.

Lance Hockridge, QR managing director and chief executive officer, said the project would contribute to a 30% increase in the tonnes transported from the southern Bowen Basin coal region.

He said: “The Wiggins Island rail project will be one of the largest rail expansions in Australia and represents a significant commitment to the future growth of the Queensland coal industry.”