Australian Coote Industrial Limited, technical sales and services provider to the resources, rail, transport, defence, maritime and power generation industries, has announced that its rolling stock subsidiary Gemco Rail on May 24 entered into a supply contract with emerging Australian miner IMX Resources Limited.
The contract covers the design, manufacture and supply of 194 container wagons for IMX Resources' wholly owned subsidiary Termite Resources NL, for deployment at its Cairn Hill magnetite/copper/gold project located in South Australia.
The container wagons will be leased to Termite Resources for a minimum period of five years. Under the supply contract, Gemco Rail will progressively deliver the wagons over a six-month period commencing in late 2010.
Gemco Rail has also entered into a related five-year maintenance contract with Australian rail haulage operator Specialised Bulk Rail Pty Ltd (SBR) for maintenance of the wagons.
The combined agreements represent an estimated contract value in excess of AU$40 million (US$32.5 million) over the initial five-year period, with both having provision for consecutive two plus two year extensions.