A new Alaskan rail link is being devised which experts say could provide a boon to the domestic platinum industry in North America.

The proposed connection between Alaska and Canada is being seen as a speedy and reliable trade route, with the Alaskan and Yukon governments agreeing to examine the idea further.

While the potential military uses of the link have attracted some controversy - particularly for anti-ballistic missile silos - leaders from both regions have expressed their backing for the scheme.

Yukon premier Dennis Fentie and Alaskan governor Frank Murkowski have signed a memorandum of understanding to commence a study into the proposals, with the findings expected in the summer of 2006.

Mr Fentie emphasised the potential for using the rail road to transport pgms, nickel and other precious metals produced in the region.

"It would help us open up our vast treasure trove of resources," he told AP.

If approval were granted the link would cost anywhere up to $2.3 billion.