Aurizon to Haul 20% More Coal for Xstrata in Queensland

   By David Winning 
 

SYDNEY--Aurizon Holdings Ltd. (AZJ.AU) Thursday said it would increase coal haulage volumes for Xstrata PLC (XTA.LN), the world's largest coal exporter, in Queensland state by 20% from late next year following a major contract win.

Aurizon said it would start shipping up to 14.6 million metric tons of coal annually from Xstrata's Rolleston mine by rail to export terminals at Gladstone and the new Wiggins Island port from December 2014. It marks an expansion of Aurizon's existing contract to haul up to 9.4 million tons of coal from Rolleston.

"Xstrata ran a competitive bidding process for this large-scale contract for Rolleston, so Aurizon is extremely pleased with this vote of confidence," Lance Hockridge, Aurizon's chief executive said in a statement.

Aurizon said the new deal with Xstrata, which will last through September 2025, would bring its total haulage volumes for the company in Queensland to more than 31 million tons of coal a year.

Aurizon, formerly known as QR National Ltd., will invest up to 215 million Australian dollars (US$221.5 million) in new rolling stock to support the contract.

-By David Winning, Dow Jones Newswires; [phone]; [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires