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- Centrex (CXM) signs on Aurizon (AZL) as its partner to transport and store phosphate rock from the CXM Ardmore project in North West Queensland
- Under a transport and logistics agreement, Aurizon will be the exclusive supplier of containerised logistics solutions from the Ardmore mine to the Townsville port
- The agreement starts this month and provides Centrex subsidiary Agriflex logistics security for four years as it ramps up the Ardmore operation
- The parties have established a guaranteed installed capacity of 216,000 tonnes in the first year, which will almost double to 508,800 tonnes each year thereafter
- Centrex shares are up 6.25 per cent to 17 cents, while Aurizon shares are down 1.33 per cent to $3.72 at 1:53 pm AEDT
Centrex (CXM) has signed on Aurizon (AZL) as its partner to transport and store phosphate rock from the CXM Ardmore project in North West Queensland.
Centrex subsidiary Agriflex and Aurizon have established a transport and logistics agreement, replacing a short-term agreement executed in May last year, under which Aurizon will be the exclusive supplier of containerised logistics solutions from the Ardmore mine to the Townsville port.
The agreement starts this month and provides Agriflex logistics security for four years as it ramps up the Ardmore operation.
Agriflex has the option to extend the agreement for an additional year but also has the ability to terminate the contract to move to a longer-term bulk solution after three years.
In this vein, Centrex Managing Director Robert Mencel said the new agreement was a step towards a longer-term, and more cost-effective, bulk logistics solution.
“We are delighted to confirm and expand on the certainty of the provision of our product to key customers in very large and strategic markets,” Mr Mencel said.
“We are equally pleased to have the assistance of an organisation of the calibre of Aurizon, which is considered to be one of Australia’s preeminent logistic companies.”
Under the agreement, the parties have established a guaranteed installed capacity of 216,000 tonnes in the first year, which will almost double to 508,800 tonnes each year thereafter.
Agriflex must offer Aurizon all Ardmore phosphate concentrate produced at the mine up to the installed capacity, except for 10,000 tonnes a year that can be sold into the domestic market.
Both parties claim to have committed to a continuous improvement program that will drive additional volume and unit rate improvements from a variety of potential initiatives.
To assist with the ramp-up period, Aurizon said it would procure additional containers, trucks and truck drivers, locomotives and wagons and rail access.
Centrex shares were up 6.25 per cent to 17 cents, while Aurizon shares were down 1.33 per cent to $3.72 at 1:53 pm AEDT
