The RAAF has secured an initial 12-month service period with options for two additional years.
The lease is being coordinated with Canadian Forces via a force to force MOU.
In a recent announcement, Defence Minister Senator John Faulkner said this high-resolution intelligence, surveillance and reconnaissance capability would enhance the capability of Australian forces in Afghanistan.
He also confirmed that the contract had been mobilising for at least four months with ADF personnel already embedded with the joint Canadian military and MDA services operation in theatre.
The Heron UAV is a one-tonne aircraft capable of medium-altitude, long-endurance flights.
In July 2009, RAAF and Army personnel undertook Heron training in Canada.
They have since been absorbed within the Canadian Heron UAV Detachment at Kandahar airfield conducting combat operations in support of ISAF.
This has meant the ADF has rapidly established its Heron capability by drawing on the Canadians' operational knowledge, experience and facilities.
When the systems arranged through the NANKEEN contract are delivered to Kandahar, Australia will establish its full Heron detachment of Air Force and Army personnel.
Senator Faulkner said the experience that Air Force gains in operating long-endurance UAVs in Afghanistan would also help shape the development of unmanned Defence capabilities for Australia through the next decade (including, we hope, the value of leasing over outright purchase of UAS systems).
This leading-edge technology is operationally proven and provides Australia with an essential capability.
It also allows Australian defence industry involvement, with companies including Geospatial Intelligence, Carbine Security Installations and Fujitsu Australia.