The Transnet Freight Rail coal transportation project involves the construction of a 2.8km loop at Thabazimbi and the building of a new 5km coal line to connect the loops at Bleskop and Norite in the north west.
BHP Billiton acted as the sponsor of the project.
The second phase of expansion runs between Waterberg and Richards Bay and is due to be completed in 2018.
The coal transportation agreement is a long term arrangement which had to take into account major upgrades to the railways and uncertainty in the regulatory environment.