"The rail project will lead to the opening of the Carmichael mine project which will deliver in excess of 10,000 jobs, and will also provide vital opportunities for Australian industry involvement," Adani Group said in a statement.
The agreement gives exclusive rights to Posco E&C to be the EPC (Engineering, Procurement and Construction) contractor for the 388 km greenfield standard gauge rail.
The binding agreement has set clear pathways to execute the final contract by the end of this year, the statement said.
"It will provide vital opportunities for Australian Infrastructure development and contribute to energy security of India by lighting the lives of millions of Indians," Adani Group Chairman Gautam Adani said in the statement.
"The binding agreement will enable us to develop a cost efficient rail solution and this relationship gives Adani access to Korean market, Posco's expertise and capital," Adani Australia CEO and Country Head Jeyakumar Janakaraj said.
"This is the largest EPC project in the region for Posco E&C, and we will put in our best efforts to maximise our engineering, procurement and financing capabilities to successfully complete the construction," Posco E&C President and CEO, Tae-Hyun Hwang said.
Adani and Posco E&C will jointly manage the development of this rail line.
The Queensland Government has declared the rail corridor as a Strategic Development Area, the statement said.