Adani Mining has announced a new rail option to reduce capital costs and move more quickly to production at its Carmichael coal project.

A 200km narrow gauge line will connect the coal mine to port via the existing Aurizon network, superseding plans for a 388km standard gauge railway between the Galilee Basin and Abbot Point.

At the Rockhampton Mayor’s Business Forum today, Adani Mining chief executive officer Lucas Dow said this would fast-track project delivery, reduce capital expenditure and deliver coal more quickly to countries in Asia with growing energy demand.

“We’re 100 per cent committed to getting the Carmichael project off the ground,” Mr Dow said.

“Delivering practical, time-efficient and cost-effective solutions such as this new rail design will ensure project benefits are realised as quickly as possible, especially in regional Queensland where people are eager to secure jobs and opportunities for small business.”

The narrow gauge rail will follow the same route as previously contemplated and have an initial design capacity of 40 million tonnes per annum, ensuring capability to manage the Carmichael mine’s 27.5Mtpa production rate.

Mr Dow said Adani had already secured the necessary approvals and land access agreements with landholders needed to build the line.

It will now submit the necessary applications to connect the new rail line with the existing Aurizon network.

Northern-based Senator Ian Macdonald hailed the rail announcement as “brilliant news” for North Queensland industry and jobs.

“This positive move towards a new coal mine and new exports will mean new jobs for workers in North and Central Queensland,” he said.

Senator Macdonald said he understood the lead contractor would be a high-profile Queensland-owned and operated private construction company