The Grasberg block cave rail haulage system will be located in the Grasberg mining district on the island of Papua, Indonesia at an elevation of almost 3000 m above sea level. It will transport 160 000 t of ore per day from multiple chute galleries to the underground crushing systems. The design entails approximately 23 km of rail (ballasted and embedded track), over 120 ore chutes to deliver ore to the muck cars and three unloading stations to deliver ore to the crushers. The rail haulage system is a closed-loop system entirely within the underground mining complex.The GBC rail haulage project will be a substantial operation. Trains consist of 11-12 bottom-dump 20 m3 muck cars driven by a 40 t electric locomotive, about 400 t per trainload. Approximately 12 trains and one spare are required to maintain full production at 160 000 t/d. All rail installations will be 1435 mm (standard) gauge with AS60 steel.The rail system is designed to operate in full automated mode, including chute loading, hauling and dumping. The operation will be controlled from a surface control room.The rail haulage project has been divided into five stages, which will be brought online over the course of ten years. Current development and construction are focused on Stage 1 for initial production that will occur beginning in late 2017. This stage includes 24 chutes in three chute galleries, one unloading station, workshop areas and almost 7 km of track (3 km of embedded and 4 km of ballast).This paper describes the key components of the rail haulage system and reports on the current status of development and construction of the system. This paper also overviews the challenges, successes, issues and risks of this project in areas such as scheduling, development, construction and operation.CITATION:Pascoe, N D, Mead, B and Vega, H, 2016. Grasberg block cave haulage project - design and construction update, in Proceedings Seventh International Conference and Exhibition on Mass Mining (MassMin 2016), pp 585-598 (The Australasian Institute of Mining and Metallurgy: Melbourne).