On a trip to North West Queensland, Minister for Natural Resources and Mines, Andrew Cripps yesterday gave the government's seal of approval for a new multi-user rail load-out facility to service mining projects in the region.

The facility would be funded by joint venture partners Xstrata Copper, MMG and Cudeco and was announced by the Minister as part of a tour of the North West Minerals Province.

"The Queensland Government will be actively working with the three mining companies to deliver the rail load-out facility for the region," said Mr Cripps.

"A memorandum of understanding has been signed by the three parties, with the intent to enter into a joint venture partnership for the development and construction of the load-out facility 10 kilometres east of Cloncurry.

"This outcome brings a resolution to more than 18 months of uncertainty on this project and will centralise the load-out requirements of three major mining operations into one location, outside Cloncurry."

Mr Cripps said the rail load-out facility would be fully funded by industry and would be capable of expansion to accommodate additional load-out requirements into the future.

"Design and planning for the project is well underway and with our government's determination to remove roadblocks it is anticipated it will be operational by mid-2014," he said.

"Once all projects are operating, the facility will handle around 2.2 million tonnes per annum of mineral concentrate for export, and will reduce the number of train movements and rail load-out activities that currently operate within the Cloncurry township."

The Mayor of Cloncurry Andrew Daniels said the new facility would do wonders for Queensland's economy.

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"It's also going to be great for Cloncurry as the bulk products won't have any impact on the community, 10 kilometres out from the town.

"We'll be making more use of the trains and the line," Cr Daniels said.

Local communities were also set to benefit from the new facility under an agreement that would see users donate to a special Community Fund.

"On current predictions, the facility should contribute approximately $100,000 a year to the Community Fund Donation program," Mr Cripps said.

Xstrata Copper North Queensland's chief operating officer, Steve de Kruijff said the facility would support Xstrata's recent $589 million investment to extend the life of the Ernest Henry Mine out to 2024.

"We will use this facility to transport copper concentrate and magnetite concentrate from Ernest Henry Mine," Mr de Kruijff said.

"Today's announcement demonstrates the State Government's commitment to grow an industry that will play a pivotal role in restoring economic certainty to Queensland."

The chief executive of the Queensland Resources council (QRC) Michael Roche said the announcement ended 18 months of uncertainty for the project.