Article: Rail link could 'open up' north mine development

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Rail link could 'open up' north mine development

Rail link could 'open up' north mine development

By Stephanie Fitzpatrick

Posted Fri Feb 11, 2011 12:13pm AEDT

An infrastructure company says it is still pushing for a proposed rail line between Mount Isa in north-west Queensland and Tennant Creek in the Northern Territory to expand industrial growth in the region.

The Australian Transport and Energy Corridor (ATEC) says it has been negotiating with phosphate mines and other resources companies in the NT and in Queensland to help fund the multi-billion dollar rail link.

ATEC chairman Everald Compton says there has not been enough support from governments or mining companies, but he is not giving up.

"One of the factors that would help it go would be whether there were new mines opening around Mount Isa that said we want to go to Darwin instead of Townsville," he said.

"That would move it along, but there would be no evidence of that happening at the moment.

"It's a good project that ought to happen - it could open development in the north enormously."

Mr Compton says the concept has been around for 10 years, but there have been major setbacks.

"Phosphate went through a period where the phosphate price dropped around the world and so a lot of phosphate mines were put on hold," he said.

"In between times, the Adelaide-Darwin railway company went into receivership and so there was no-one to negotiate with at the other end until recently.

"It's been sitting there on the drawing board."