Asciano Limited (AIO) announced that it has executed a long term, take-or-pay contract with Macarthur Coal Limited (MCC) for the movement of 7 million tonnes of coal per annum from the Coppabella and Moorvale mines in Queensland commencing on 1 November 2010. Asciano said the agreement would generate revenues of approximately $250 million for the company.

Asciano said Macarthur related entities are now its largest coal haulage customer in Queensland with annualised tonnes in excess of 10 million.

CEO Mark Rowsthorn said the company had achieved its goal of securing contracts totalling 30 million tonnes by the end of 2010 and added that every contract signed to date would deliver returns at or above its internal benchmarks.

“With our first ten train sets in Queensland contracted, Asciano will now proceed to purchasing further train sets to support its ongoing growth in this extremely important market”, Mr Rowsthorn said.

“The coal haulage opportunities presented by the northern and southern missing link infrastructure projects, as well as the development of the Surat and Galilee basins, are clearly next on our agenda.”

At the close of trade Wednesday, Asciano shares were trading at $1.75, while Macarthur Coal shares were trading at $10.00.