The company called into question the adequacy of the Mount Isa rail line, while separate claims were lodged with the Townsville Bulletin following the story that the Chinese group looking to join Legend, Wengfu Group Co Ltd, had backed out.

However Mr Gutnick said that was ''absolute rubbish''.

''We are in constant contact with (Wengfu),'' he said.

''They are sending over a major technical group and they will be visiting Townsville.

''Everything is going full steam ahead