State says Northern Missing Link project stays on track

Brisbane (Energy Publishing) - State authorities in Queensland say the so-called Northern Missing Link project to boost railway capacity from the Bowen Basin coalfields to Abbot Point coal terminal hasn't taken a hit from the failed signup of the Aquila-Vale Eagle Downs mine joint venture.

They're indicating that the six coal companies reported to have signed for Northern Missing Link haulage capacity are expected to sign for more tonnage to secure the economics of the A$1B-plus work on a 219km stretch of line - including a 69km gap - aimed at opening up an extra 50Mtpa capability to haul coal from the northern Bowen Basin to Australia's most-northerly coal terminal.

The Eagle Downs JV missed last week's deadline to sign with state-owned Queensland Rail (QR) to help underwrite the project and the partners are now embroiled in a legal spat over it.

QR is quoted today as saying commercial agreements with coal companies that have signed for the project are being finalised and Northern Missing Link construction is on-schedule to start next month.

Meanwhile, local company Aquila says it has issued a default notice to its Eagle Downs partner, a subsidiary of Brazilian giant Vale, over its failure to sign on time.