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Aurizon signs contract extension with Syntech

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World Coal,

Australian rail haulage company, Aurizon, has extended its contract with existing customer, Synthech Resources, signing a new contract for the haulage of coal from the Cameby Downs coal mine to the Port of Brisbane.

The two-year performance-based agreement will see Aurizon haul up to 1.7 million tpa of coal from the beginning of February 2016 and includes the option to extend for an additional two years. It replaces a 1.4 million tpa contract between Aurizon and Syntech Resources that runs out this month.

“We have worked closely with Syntech Resources to deliver an agreement that provides operational flexibility and the opportunity to share in producticity enhancements and improvements in market conditions,” said Ausrizon Executive Vice President – Commercial and Marketing, Mauro Neves.

The Cameby coal mine is located in southeast Queensland about 360 km west of Brisbane. It is connected to the Port of Brisbane by the South-West rail corridor.

The new contract comes as Aurizon reported a fall in coal volumes in 4Q15. Its Queensland coal business was particularly hit with an 8% fall in tonnes hauled on the back of increased competition from BMA Rail, a division of coal mining company, BHP Mitsubishi Alliance, and the loss of a 2 million tpa contract with Anglo American German Creek mine.

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