UPDATE: Asciano Signs Contract With Anglo Coal In Queensland
30 June 2009 - 1:22PM
Dow Jones News
Asciano Group (AIO.AU) continues to build customers at its
Pacific National coal business, signing up Anglo Coal as its fourth
Queensland coal haulage customer.
Asciano is also bringing forward its purchases of rolling stock
for its coal haulage business in New South Wales state's Hunter
Valley, citing forecasts of a sharp rise in volumes over the next
two years.
"We are extremely pleased to have Anglo Coal on board," Asciano
Chief Executive Mark Rowsthorn said Tuesday in a statement.
Anglo Coal, which is a unit of Anglo American PLC, has agreed to
a 10-year, take-or-pay contract starting July 1 with annual
capacity of 5.75 million metric tons from its Moranbah North mine
in the Goonyella system.
Asciano's other long-term contracts starting July 1 are with
Macarthur Coal Ltd., Rio Tinto Ltd. and Xstrata PLC.
The port and rail operator in May commissioned its second
diesel-powered coal train for the Queensland coal fields.
Asciano said it is also in "detailed discussions with a number
of key existing Hunter Valley Coal haulage customers regarding
anticipated contract renewals over the next two financial
years."
"Asciano has a high degree of confidence in the anticipated
outcome of these contract renewal processes," the company said.
It is also discussing, with one of its major existing customers,
a long-term haulage contract for their New South Wales tonnages
from 2011 onwards.
Asciano said it will place orders for an additional 12
locomotives and 400 120-ton coal wagons to supplement its Hunter
Valley Coal fleet.
The total capital expenditure commitment is about A$160 million,
of which approximately A$30 million will be spent immediately, with
the balance spent progressively through next fiscal year.
Asciano expects a net increase in volumes for its Hunter Valley
business of between 40% and 50% above current volumes by December
2012.
At 0250 GMT, Asciano was up 3.4% or 4.5 cents at A$1.355,
compared with a 1.5% rise in the S&P/ASX 200.
-By Iain McDonald, Dow Jones Newswires; 61-2-8272-4681;
iain.mcdonald@dowjones.com
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