Aurizon locks in major long-term BMA coal haulage contract in the Bowen Basin
Aurizon (ASX: AZJ) has secured a new long-term, performance-based coal haulage contract with BMA, the BHP Mitsubishi Alliance, covering rail transport of coal from BMA’s Queensland mine operations. The agreement carries annual volume flexibility provisions allowing for up to 37 million tonnes per annum over a term of up to 12 years.
The contract becomes effective from 1 July 2028 and, subject to agreed performance and extension arrangements, could extend the relationship out to 2040. It replaces the existing 2015 contract held by Aurizon and renews a partnership that stretches back over a decade.
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The contract at a glance
The deal covers metallurgical coal haulage across five of BMA’s mines in the Bowen Basin. The key terms disclosed by Aurizon are summarised below.
| Contract Feature | Detail |
|---|---|
| Customer | BMA (BHP Mitsubishi Alliance) |
| Commodity | Metallurgical coal |
| Region | Bowen Basin, Queensland |
| Mines serviced | Goonyella Riverside, Broadmeadow, Peak Downs, Saraji, Caval Ridge |
| Max annual volume | Up to 37Mtpa |
| Effective date | 1 July 2028 |
| Term | Up to 12 years (potential extension to 2040) |
| Replaces | Existing 2015 contract |
The five BMA metallurgical coal mines serviced under the contract are:
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Goonyella Riverside
-
Broadmeadow
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Peak Downs
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Saraji
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Caval Ridge
A competitive win that anchors Aurizon’s coal franchise
The renewal underpins one of Aurizon’s most material customer relationships. According to management, close to a quarter of the coal tonnes Aurizon carries in Queensland is hauled for BMA, making the alliance a foundational component of the company’s coal franchise.
The contract was awarded in a competitive tender rather than as an automatic renewal. Aurizon has framed this as validation of its service reliability, with management attributing the win to consistent, dependable delivery over a long-standing partnership.
The award also contributes to a broader recontracting story. Combined with other customer recontracting, Aurizon reported that more than 60 million tonnes of annual coal haulage had been recontracted since July 2025, representing all customer contracts tendered over that period.
Andrew Harding, Managing Director and Chief Executive Officer
“Close to a quarter of the coal tonnes we carry in Queensland is for BMA and BMA is a very valued customer.”
“We were awarded this contract in a competitive environment and I believe our consistent, reliable service delivery was a significant contributing factor to our success.”
Understanding performance-based rail haulage contracts
A long-term rail haulage contract is an agreement under which a rail operator moves bulk commodities, such as coal, from mine sites to ports or processing facilities over an extended period. The annual volume flexibility provisions of up to 37Mtpa matter for both parties: they give the producer scope to adjust volumes in line with mine output, while providing the rail operator with a defined ceiling to plan capacity around.
What it means for the investment case
The renewal secures a foundational customer relationship with the potential to run to 2040 and demonstrates Aurizon’s ability to compete and win in contested tenders. Rather than a first-time win, this is a replacement of the existing 2015 arrangement, reinforcing the company’s track record with a long-standing customer.
The wider recontracting momentum adds weight to the story. With more than 60 million tonnes of annual coal haulage recontracted since July 2025, representing all customer contracts tendered over that period, the announcement points to retention strength across Aurizon’s customer base.
The effective date of 1 July 2028 provides continuity between the expiring 2015 contract and the new agreement.
The UT5 Plus regulatory framework, which covers the Central Queensland Coal Network from 1 July 2027 to 30 June 2037, is advancing through QCA assessment in parallel, with the regulator having already endorsed the WACC methodology, depreciation profile, and throughput payment ahead of a final decision later in 2026.
No contract dollar value, pricing, or margin figures were disclosed. On the terms released, the agreement positions Aurizon’s coal segment with strong forward volume certainty out to a potential 2040.
Looking ahead
The new contract commences on 1 July 2028 and runs for a period of up to 12 years, with agreed performance and extension arrangements potentially extending the BMA relationship to 2040.
Management has stated its commitment to continue delivering for BMA and to play its role in supporting Australia’s mining sector. With the tender secured and continuity in place ahead of the 2028 start date, the focus now turns to execution over the life of the agreement.
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