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The developers of a $10 billion coal project in central western Queensland have signed a memorandum of understanding (MOU) over transport services.
GVK Hancock is developing the Alpha Coal project in the Galilee Basin, which includes a thermal coal mine, a 500-kilometre rail line and port facilities at Abbot Point.
The company has signed an MOU with QCoal for the two companies to work together on coal transportation services.
Those services will be provided by Hancock to QCoal for about 20 million tonnes of coal per annum.
In a statement, GVK Hancock says it is a major milestone.
It is anticipated the coal will be transported on the Galilee Basin north-to-south rail line, which the State Government announced earlier this year as the preferred rail corridor.
The company says pending approvals, the Alpha mine will start producing coal in 2016.
This article first appeared on www.abc.net.au
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