8 February 2012
On February 8th 2012, CGL met with Tim Cotton (Manager Procurement Mining Materials) and Rene Chouinard (Leader, Hydrocarbons & Explosives) from Rio Tinto Global Procurement in Melbourne where it was announced that CGL was the successful tenderer for both Argyle Diamonds Ltd (ADL) and Gove.
These are the only two Rio Tinto sites in Australia that were not awarded to Shell through the Rio Tinto global tender process. CGL’s success was attributed to price competitiveness, security of supply and attention to the local community.
Both contracts are for 8eight years (5 plus 3), with ADL kicking off in April 2012 and Gove shortly afterwards. The annual volumes ofr ADL and Gove are estimated at 30M litres and 21M litres respectively with a gross values of approximately $600M across the 8 years at todays diesel price.
Whilst ADL is a continuation of an existing arrangement, Gove is a new site for CGL and is particularly exciting as it is a 50/50 JV with Bunuwal Investments, a company owned by the traditional owners of the area. The award pf the Gove contract ushers in a new era for CGL as a logistics provider to customers in other remote areas of northern Australia and a number of business opportunities within Gove and other locations will be pursued once this arrangement is bedded in