It is reported that Australian infrastructure operator Asciano has renegotiated a contract with miner Coal & Allied Industries to carry 30 million tonnes a year from its Hunter Valley mines to the port of Newcastle.

The new, 10 year minimum contract is based on take-or-pay terms, under which Coal & Allied will pay Asciano for carriage of the coal whether it is able to provide the tonnage or not.

Asciano is the dominant provider of coal haulage between the Hunter Valley and Newcastle, the world largest coal export basin by tonnage. QR National is dominant in the coal mines of Queensland.

Shares in Asciano gained 2% on news of the renewed contract. By mid-morning at the ASX, Asciano was up 3 cents at USD 1.58 while the broader share market put on 1%.

(Sourced from The Australian)