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Rail operator Asciano has signed a $500 million deal with Japan's Idemitsu to haul coal from its Boggabri mine, near Narrabri, to Newcastle.
The 12-year-contract makes provision for a 400 per cent increase in coal production at the mine, from 1.5 million tonnes to six million tonnes over time.
Executive general manager with Idemitsu, Peter Wilkinson, says the expansion will see increased rail movements and the purchase of more trains.
Mr Wilkinson says Idemitsu will shortly lodge a development application with the New South Wales Government to increase its coal volumes.
Narrabri Shire Council Mayor Robyn Faber says she backs the expansion and is hopeful jobs will be generated in the local community now the rail contract has been locked in.
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