Aurizon has withdrawn its application for NAIF funding to build the Galilee Basin rail line.

Aurizon chief Andrew Harding says the company supports developing mining in the Galilee, but will not seek federal funding from the Northern Australia Infrastructure Facility (NAIF) because they are currently no clients to build the rail line for.

“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,” he said.

“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 contacts secured. Given this is unlikely to occur in the near future, we believe it is prudent to withdraw the NAIF funding application.

“If market circumstances change and our discussions with potential customers progress to commercial arrangements, we will look at all possible funding arrangements to develop the rail solution.”

The rail line is required for development of the remote Galilee Basin to go ahead.

The apparent lack of interest in building it is seen as a blow to the prospect of mines in the region, including Adani’s Carmichael mine.

Adani’s plans remain stalled due to a lack of funding, despite having received environmental approvals.