Asciano Group
(ASX:AIO) says it has executed a long-term, take or pay contract with coal miner Macarthur Coal Ltd
(ASX:MCC) for the movement of 7 million tonnes of coal per annum from the Coppabella and Moorvale mines in Queensland, staring from the 1st of November 2010.
Asciano says the contract will generate total revenues of approximately $350 million and confirms Macarthur related entities as its largest coal haulage customer in Queensland with annualised tonnes in excess of 10 million.
CEO Mark Rowsthorn says the company originally planned on securing contracts totalling 30 million tonnes by the end of 2010, saying that box has now well and truly been ticked with every contract signed to date expected to deliver returns at or above Asciano’s internal benchmarks.
Mr Rowsthorn says that with the company’s first 10 train sets in Queensland contracted, Asciano will now proceed to purchasing further train sets to support its ongoing growth in this extremely important market.
Asciano posted a loss of $246.44 million for the 2009 financial year, and Macarthur Coal earned $168.56 million in the 12 months to June 30, 2009.
