The Queensland Government has announced major upgrades to rail services following a deal struck between Queensland Rail, Pacific National and Xstrata to deliver increasing quantities of magnetite concentrate.

 

The deal centres on a 10 year Access Agreement to transport magnetite concentrate from Xtrata’s Ernest Henry Mining operation in Cloncurry to the Port of Townsville.

 

Core to the deal is the use of longer and more efficient trains, centred on an upgrade from the currently used 750 metre trains to 1000 metre trains.

 

Queensland Transport Minister, Annastacia Palaszczuk, said Queensland Rail has invested $1 million in upgrading the Partington Yard to cope with the increased size of the haulage trains.

 

“These arrangements will pave the way for business growth along the Mount Isa Line and enable the creation of employment opportunities in North Queensland.” Ms Palaszczuk said.

 

“In addition to increasing the length and tonnage capacity of the trains through the use of purpose built rollingstock, Pacific National will introduce a range of new technologies and innovations such as wired distributive power and ECP braking to help deliver a safe and reliable rail service.”

 

Xstrata Copper will be the first Queensland firm to export magnetite concentrate and is expected to produce 1.2 million tonnes at full capacity.

 

The improvements to the rail system, as well as the improved production processes expected result from the upgraded infrastructure, is expected to generate 160 jobs in the region.