Key Highlights

  • Aurizon Holdings (ASX:AZJ) has secured a new long-term coal haulage agreement with BMA, covering tonnes from several major Queensland metallurgical coal mines.
  • The contract begins on 1 July 2028 and includes annual Volume flexibility of up to 37 million tonnes.
  • The agreement can run for up to 12 years under agreed performance and extension arrangements, potentially extending the relationship with BMA to 2040.
  • Aurizon said more than 60 million tonnes of annual coal haulage has been recontracted since July 2025, covering all customer contracts tendered during that period.

Aurizon Holdings (ASX:AZJ) has secured a new long-term, performance-based contract with BMA, the BHP Mitsubishi Alliance, for rail haulage of coal from Mining operations in Queensland's Bowen Basin.

The agreement covers coal tonnes associated with BMA's Goonyella Riverside, Broadmeadow, Peak Downs, Saraji and Caval Ridge mines. It will commence on 1 July 2028 and replace Aurizon's existing contract with BMA that dates back to 2015.

Annual volume flexibility under the new arrangement provides for up to 37 million tonnes per annum. The contract has a term of up to 12 years, subject to agreed performance requirements and extension arrangements. If extended through the full potential period, the relationship could continue until 2040.

Importance of BMA Relationship

BMA is a significant customer for Aurizon's Queensland coal haulage business. The company said close to one-quarter of the coal tonnes it carries in Queensland are associated with BMA operations.

The new contract was awarded through a competitive process. Aurizon identified its established operating record and long-standing relationship with BMA as important factors in securing the renewed agreement.

The contract provides continuity for a major haulage relationship while replacing the existing 2015 agreement. Its performance-based structure also links the continuation of the arrangement to agreed service and operational requirements.

Bowen Basin Operations

The Bowen Basin is a major coal-producing region in Queensland, and Aurizon's rail network plays a role in transporting coal from mines to export facilities. The new BMA agreement therefore forms part of the company's broader Queensland coal haulage operations rather than representing an entirely new customer relationship.

The volume flexibility of up to 37 million tonnes annually provides a framework that can accommodate changes in haulage requirements over the contract period. The long potential duration also gives Aurizon visibility over a substantial period of future customer engagement.

Broader Recontracting Activity

The BMA agreement follows a series of customer contract renewals secured by Aurizon since July 2025. According to the company, more than 60 million tonnes of annual coal haulage has been recontracted during this period.

Aurizon said this represents all customer contracts tendered over the period. The activity is relevant to the company's future coal haulage base because existing contracts are periodically subject to competitive tendering and renegotiation.

The BMA renewal therefore sits within a broader process of maintaining Aurizon's contracted coal volumes. The company continues to operate within an industry where customer requirements, coal production, rail capacity and contract structures influence future volumes.

Contract Duration and Operating Requirements

The agreement is performance-based, meaning the continuation and extension arrangements are linked to agreed operational outcomes. This structure places importance on Aurizon's ability to maintain reliable rail services throughout the contract period.

For Aurizon, the replacement of the 2015 agreement also establishes a new contractual framework beginning in FY2029. The potential 12-year duration would provide a long period of customer engagement if the relevant performance and extension conditions are met.

Conclusion

Aurizon's new BMA contract reinforces an established Queensland coal haulage relationship and replaces a long-running agreement that began in 2015. With annual volume flexibility of up to 37 million tonnes and a potential term extending to 2040, the arrangement represents a significant component of the company's future contracted coal haulage activities. The agreement also follows more than 60 million tonnes of annual coal haulage recontracted by Aurizon since July 2025, highlighting the company's continuing focus on retaining customer volumes through competitive tender processes.