QR rails first coal from new Hunter Valley coal mine

[ozbob]

QR Media Release

QR rails first coal from new Hunter Valley coal mine

28 May 2010

National transport and logistics company QR today began railing coal from Felix Resources' new Moolarben coal mine in the Upper Hunter Valley of NSW to the Port of Newcastle under a new $870 million contract.

Today's train was the first of an estimated 17,000 services QRNational Coal will run for Felix over the life of the contract.

Under the contract QR's coal business QRNational Coal will deliver up to 12 million tonnes of coal a year from Felix Resources' Moolarben mine for the next 11½ years.

QRNational Coal will service the contract with the most powerful locomotives on the east coast of Australia and is investing an additional $190 million in new rolling stock.

New locomotives and wagons are already entering service.

Executive General Manager of QRNational Coal Marcus McAuliffe said he was pleased to be extending QRNational Coal's existing relationship with Felix Resources and to be further expanding QR's position in the Hunter Valley.

"This train is the start of a long relationship with Felix Resources at Moolarben mine," Mr McAuliffe.

"We are very pleased to begin work under this contract and we look forward to growing with Felix as its grows its business in NSW and to continuing to expand our presence in the Hunter Valley area."

Managing Director of Felix Resources Brian Flannery echoed the sentiments.

"Moolarben mine is set to become the largest of our operations as port capacity increases," Mr Flannery said.

"We know from QRNational Coal's existing services to Felix at our Minerva and Yarrabee mines in Queensland and our Ashton mine in NSW that they will be able to meet our growing needs into the future."

QRNational will have secured 30% of the Hunter Valley market by 2011/12 when extra tonnages for new long-term contracts come on line.

[mufreight]

A further reason not to privatise.