Transnet, BHP Billiton sign contract

By Drum Digital
30 September 2014

Transport parastatal Transnet and coal mining company BHP Billiton signed a 10-year R24 billion coal transport contract.

Transport parastatal Transnet and coal mining company BHP Billiton on Tuesday signed a 10-year R24 billion coal transport contract. Transnet group executive Brian Molefe signed the contract with BHP Billiton energy coal asset president Jon Evans at a press conference in Johannesburg.

The contract entails railing coal from BHP Billiton's Mpumalanga operations to the Richards Bay coal terminal.

Evans said international markets would be the final destination. Transnet would add close to eight million tonnes of coal in capacity to the line, from the current 73 million to 81 million tonnes, over then next seven years.

The agreement with BHP equated to a contract value of approximately R2.4bn per annum and R24bn over the 10-years, said Molefe.

-SAPA

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