Caltex signs $200 million deal

Caltex Australia has just signed a major deal to supply diesel to an emerging major iron ore operation in Western Australia's Pilbara region

As the Pilbara's new Roy Hill project ramps up operations ahead of its first export shipment next year, fuel heavyweight Caltex Australia has inked a two-year, $200 million contract that will see it supply on-site diesel to the mine.

According to Caltex Australia's National Manager, Business to Business Sales, Phil Amos, the deal is a crucial part of the project's development.

"Caltex is supplying about 120 million litres of diesel to Roy Hill over the course of the contract to meet all the mine’s fuel needs during this important start-up phase and as production is expanded," he said.

"We recently commissioned on-site fuel storage infrastructure at Roy Hill as part of our commitment to manage all of the mine’s diesel requirements.

"Deploying a fleet of four dedicated road trains, we will transport diesel about 400 kilometres by road from Caltex’s 40-million-litre storage terminal at Port Hedland to facilities at the Roy Hill mine."

Mr Amos said the fuel will be used to power on-site equipment and generators. From next year Caltex will also supply the diesel-powered trains that will carry the ore to Port Hedland for export.

Located in the Chichester Range roughly 277 kilometres south of Port Hedland, the Roy Hill project is expected to become one of Australia's largest mining projects, with projected reserves of over 2.4 billion tonnes.

Gina Rinehart's Hancock Prospecting is the majority stakeholder, owning a 70 per cent stake.

"Caltex, Australia’s only locally listed and managed fuel supplier, is pleased to be working alongside another Australian business as it fulfils its growth plans," said Mr Amos.

Caltex signs $200 million deal

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