AURIZON has withdrawn a request to the Northern Australia Infrastructure Facility (NAIF) for funds to assist with a rail solution in the Galilee Basin.
Aurizon managing director and CEO Andrew Harding said the company had decided to withdraw the application as it largely hinged on having contracts secured with mine proponents, which was unlikely to happen in the near future.
Mr Harding said Aurizon continued to support the development of the Galilee Basin, and would consider further financial requests to develop a rail corridor if market conditions improved.
“When developed it has the potential to provide a major boost to the national economy and create thousands of jobs in regional Queensland,” Mr Harding said.
“We believe Aurizon can play a key role in helping facilitate a multi-user, open access rail solution for the various new mines in the region.
“However, while we are in ongoing discussions with several Galilee Basin mine proponents we have not yet progressed to definitive contractual arrangements with any proponent.
“Our NAIF application is, in part, predicated on having customer contracts secured.
“Given this is unlikely to occur in the near future we believe it is prudent to withdraw the NAIF application.
“If market circumstances change and our discussions with potential customers progress to commercial arrangements we will look at all possible financing arrangements to develop the rail solution.”
A NAIF spokesman confirmed that Aurizon had informed the body of their decision to withdraw the funding request.
”As such, NAIF will no longer be considering that Aurizon request for financial assistance,” he said.