GLENCORE’S chief operating officer of Australia’s copper assets refused to accept the blame for the company transporting product from Mount Isa to Townsville by road instead of rail.
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Mike Westerman said the company did not renew its existing contract with Aurizon from January 31 because it was “significantly expensive” compared to the tender supplied by successful applicant Pacific National.
But then Aurizon refused to sell or loan its rail carriages which were necessary to transport the product.
But an Aurizon spokesperson said the company did offer to lease freight terminal equipment and rail wagons to Glencore.
“Glencore did not accept the lease offer. Aurizon’s wagons are no longer available to Glencore.”
Mr Westerman said these rail carriages were “sitting in a yard rusting” In Mount Isa while the mining company had no option but to transport its product by road.
Glencore had made all offers to lease or buy the unused carriages.
I sympathise, empathise, it just beggars belief."
- Mike Westerman
“It’s a ludicrous situation,” Mr Westerman said. “It’s got me gobsmacked.
“If anyone is a better negotiator than me I’m happy to hear your suggestions,” he said at the Mount Isa Mines’ community consultation meeting at Red Earth on Tuesday night.
Mr Westerman responded to several questions in the room regarding to the increased burden of the mining company’s freight on the road. The topic began with concerns expressed by local industry group MITEZ’s president David Glasson.
"I am sharing your frustrations,” Mr Westerman said.
“I sympathise, empathise, it just beggars belief…the road should be cheaper in 300 kilometres but not 900 kilometres.
“Our priority is to have product on the rail, there’s no way we want product on the road...if we can avoid that we should do that but we can’t do that at all costs.”
Mount Isa Mines will spend $2 million to build new rail carriages so that Pacific National can transport the product to Townsville.
“The first of the carriages will be delivered in March but it won’t be all of them," Mr Westerman said.
Mount Isa State MP Rob Katter also asked for the company’s assurances of commitment to public safety on the roads being used, through his representative Kim Coghlan.
Mr Westerman said; “we have got to get that product off the road...now, if Aurizon want to sell or lease or make money from the carriages rusting there.”
Mr Glasson and Mr Westerman spoke privately after the meeting. The MITEZ president was asked if he was happy with Mr Westerman’s response to his question. “That’s all right, no drama,” Mr Glasson said.
The Aurizon spokesperson said its multi-product train that ran daily on the rail corridor was stopped when Glencore did not renew the contract.
80 Aurizon roles in Cloncurry, Hughenden and Townsville were impacted when the contract was not renewed.
“Since that time, Aurizon has sought to assist Glencore as its transitions from Aurizon’s rail services to other transport for its products,” the spokesperson said.
“This includes Aurizon’s sale to Glencore of specialised rail equipment for haulage of their products, and an offer to lease our freight terminal in Mount Isa and rail wagons to Glencore.”
