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The contract for the 69-kilometre Northern Missing Link will involve below-ballast works on the greenfield link between the Goonyella and Newlands rail systems. Work will also include duplication works on part of the Newlands rail system.
The contract includes $68 million previously allocated to the alliance in 2008 to start earthworks on the project.
Due for completion in December 2011, the $1.1 billion project will significantly increase carrying capacity and reliability of the central Queensland coal rail system, and align with the $845 million expansion of the Abbot Point port to support up to 50 million tonnes per annum.
The project was this month backed by BHP Billiton, Rio Tinto, Macarthur Coal, Lake Vermont Resources and Qcoal.