Caltex inks $200m Roy Hill deal
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Caltex Australia (CTX) has signed a $200 million deal to supply diesel fuel to Gina Rinehart's pet project, the Roy Hill iron ore mine.
Caltex Australia will begin its two-year contract to supply fuel to Australia's largest mining project in Western Australia's Pilbara region today.
Executive Phil Amos said Caltex would supply about 120 million litres of diesel over the course of the contract during the start-up phase and as production is expanded.
A fleet of four dedicated road trains will transport fuel 400km by road from Port Hedland.
The signing of the Caltex contract is the latest step in Ms Rinehart's plan to get the Roy Hill mine up and running.
The project secured a $7.2 billion funding package from an international consortium of 19 banks, including Australia's big four lenders in March and struck a $136 million deal with UGL to supply electricity in April.
It is expected to employ up to 3,600 people during construction, and a further 2,000 staff once operations start.
The mine predicts it will export its first iron ore in 2015 and is targeting annual production of 55 million tonnes.
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