The project was announced as a joint-venture between Aurizon, formally QR National and Indian company GVK Hancock last year. A rail line is needed to take coal from the Galillee Basin to the Abbot Point port.

A spokeswoman for Aurizon said there had been no change to its plans to develop rail infrastructure.

"Claims to the contrary are misguided and misinformed," she said.

"Aurizon continues to work with the Queensland Government in regard to the approval of the expansion of its existing Newlands System under the Galilee Basin State Development Area (GBSDA) which has been declared for the development of integrated rail corridors between the Galilee Basin and Abbot Point.

"This work formed part of the previously declared Central Queensland Integrated Rail Project (CQIRP) for which an Environmental Impact Statement (EIS) was drafted. As recently as Friday (19 Sept), we acknowledged this change in process and welcomed the government’s initiative in progressing with the State Development Area, as the key State mechanism in the regulation of development of necessary infrastructure to service this important area.

"...Aurizon is also continuing positively in discussions with GVK Hancock towards a transaction to secure majority ownership (51%) of GVK rail and port project including the current approvals by early 2015."

The Mackay Conservation Group, which has fought the government's plans for mining in the Galilee and the expanded Abbot Point port project every step of the way, celebrated the missed deadline.

"We have seen no movement on the ground for over 18 months and coal prices remain low," MCG's Moira Williams said.

"Both Aurizon and GVK have questions to answer about how serious they are about progressing these projects as the lapsing of the CQIRP suggests they are walking away."

Deputy Premier Jeff Seeney disagreed.

"Since we've come to power, we have worked to reduce the six or seven options that were on the table [for a rail line] under the previous government down to two.

"The developments have been instigated by one of those six or seven options dropping off the table, which is the result that we wanted.

"We've narrowed it down to two corridors which have been identified as state development areas.  The Aurizon line which wasn't one of those corridors, was the subject of some preliminary studies and that process has been brought to a halt.  That is exactly what we wanted."

Adani and GVK, in a separate venture, still have options on the table.  Mr Seeney said the decision on whether either proceeded would be a decision for the proponents, based on market decisions.

"We'll be doing everything we can to ensure the Galilee Basin does go ahead and that Abbot Point will go ahead," Mr Seeney said.

"We have a great solution for Abbot Point."

But Dr Williams accused the government of "desperately trying to shore up investment" in what they said was a "risky" venture.

"The landholders on the rail line face declining land values and uncertainty around future land use, which is already freezing farm investment and expansion," she said.