They intend to incorporate a jointly owned special purpose vehicle to manage the design, construction and operation of the spur.

“Signing this joint venture agreement provides certain and cost effective infrastructure access for the Maules Creek project,” Aston interim chief executive Peter Kane said.

“We are excited to be working together with our near neighbours to avoid duplication, minimise construction costs and lock in a long-term access corridor.”

The MCJV and Boggabri Coal will have participating interests in the JV company of approximately 52% and 48% respectively, reflecting the respective proportions of the parties’ anticipated long-term throughput of coal.

Construction costs will be borne in proportion to the parties’ participating interests.

The MCJV will have the right to rail 10.8 million tonnes per annum, with the ability to increase the throughput to 15Mtpa when it receives appropriate approvals.

Boggabri Coal will have the ability to rail 10Mtpa, with the ability to rail 13Mtpa with approvals.

Each partner’s contribution to annual operational expenditure will be determined by the proportion that its usage of the rail spur bears to total per annum throughput.

The partners will each grant and register easements over land they hold within the rail corridor – ensuring access to the main rail line is protected until the end of mine life of the Maules Creek coal project or the Boggabri coal mine.

The two companies have also signed a term sheet under which they have agreed to evenly split the costs associated with the shared Transgrid transmission line, upstream communications and control equipment, as well as the use of the existing Boggabri haul road as an access road for both the Maules Creek and Boggabri mines.