The mooted multimillion-dollar upgrade and reopening of the line running past Dubbo homes has been raised by the company in response to community "speculation".

The latest DZP community newsletter sets the record straight as to the responsibilities of Australian Zirconia Limited (AZL), a wholly-owned subsidiary of Perth-based Alkane Resources.

"There has been speculation as to whether the Dubbo-Toongi section of railway line will be upgraded and reopened to support the project," it states.

"This has not been ruled out, and AZL is committed as part of the project consent conditions to assess, within three years of commencement, the economic viability of using this section of rail to transport certain key processing reagents to site."

AZL reports that the revitalisation of the railway line is contingent on it being able to establish long-term and regular reagent supply chains through Newcastle Port.

"The option of railing some reagents through to Fletcher International siding in Dubbo will also be examined, but this will not involve the Dubbo-Toongi line," the newsletter read.

Alkane Resources is seeking to finalise a finance package for the DZP with the intention of using some of the first tranche of funding to convert 27 kilometres of Obley Road to B-double standard.

Trucks will move to and from the DZP site, about 27 kilometres south of Dubbo at Toongi, where the company will tap into one of the world's largest in-ground resources of rare metals and rare earths.

Currently overseas, managing director of Alkane Resources Ian Chalmers has previously told of its preference to use both road and rail for the DZP.

The DZP was granted an Environment Protection Licence this month after what NSW Minister for Industry, Resources and Energy Anthony Roberts called a "rigorous government approval process".