In 1874 the manager of the Iron Works built a coal-skip line over Mount Alexandra in order to transport coal and coke to the Iron Works, replacing an existing line previously used as a skip line track around the end of the mountain for horse-drawn trucks to transport the coal.
The construction of the line over the mountain involved building an embankment across the gully for the line which created a lake, providing a plentiful water supply needed by the iron works for steam boilers and for cooling hot air jets used with the new hot-blast system.