Finalisation by SunWater and Queensland miners, on commercial arrangements to develop a water pipeline from the Burdekin Falls Dam to Moranbah, has been completed and Beattie said all government approvals were at hand.

Funding commitments have also been made by foundation users: BMA Coal, Macarthur Coal, Carborough Downs Coal, Isaac Plains Coal, Rio Tinto Coal Australia (Hail Creek Mine) and Millennium Coal. The companies have underwritten the design, initial material procurement, and preliminary works, which will allow work to commence immediately.

SunWater will construct the $270 million pipeline, which is scheduled to be ready to transport 9000 megalitres of water to customers by December 2006, increasing to its capacity of 16,600 megalitres by July 2007.

McConnell Dowell Constructors were awarded the construction contract by SunWater for the pipeline. McConnell will construct 217km of pumped raw water pipeline and associated infrastructure, including four pump stations and Gorge Weir refurbishment works.

"Development in the Bowen Basin is dependent on a reliable water supply for on-site handling and processing, dust suppression and other activities," Beattie said.

"With Eungella Dam – currently the main source of water supply for mining – at critical levels, and miners looking to expand their operations to take advantage of an export boom in coking coal, a secure and reliable water source is essential.”

Beattie said the pipeline would protect water supplies from a failed wet season and would allow for industry expansion.

In addition to the main pipeline, construction has commenced on a 45km eastern spur joining the existing Eungella pipeline through to Coppabella. A 71km southern extension is planned to further support mining operations in the Dysart region.