Two Australian Coal Companies Secure Rail Access To Newcastle Port

Two of Australia's largest listed coal companies announced access agreements with a government-owned operator to Newcastle port Tuesday, raising prospects for increasing exports from the site.

Aston Resources Ltd. (AZT.AU) and Whitehaven Coal Ltd. (WHC.AU) both said they had entered into agreements with the Australian Rail Track Corp.

Aston said it had signed an agreement that would allow 5 million tons a year of exports from the third quarter of 2013, meanwhile Whitehaven said it had entered into agreements that would match its long-term production and port capacity, with agreements on a 10-year term.

Aston also said that it was confident of securing "significant surplus port capacity" at Newcastle, the world's biggest coal export harbor, from 2013 onwards.

"Aston will secure the balance of its required port capacity through a combination of short and medium-term capacity and blending deals with other export producers," the company said.

The companies operate mines in the Gunnedah Basin, a little-exploited region north of Australia's Hunter Valley in New South Wales state where the world's biggest mining group and biggest coal miner, BHP Billiton Ltd. (BHP) and China Shenhua Energy Co. Ltd. (1088.HK), also hope to develop mines.

Increasing rail access to the region is a key hurdle to developing its coal resources.

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