VITAL LINK FOR JOBS
THE closure of an ageing power station in Mount Isa means there will again be a monopoly on power supply in the region, threatening jobs in the North West Mineral Province, Traeger MP Robbie Katter says.
Mr Katter says the Copperstring 2.0 project, which aims to build an 1100km high-voltage transmission line to connect the region to the grid near Townsville, is vital to the mining industry and jobs.
THE future of jobs in North Queensland could be under threat when an ageing Mount Isa power station goes into cold storage on January 1, Traeger MP Robbie Katter has said.
The closure of the 218MW gas-fired Mica Creek Power Station means a monopoly on power supply will return to the region, strengthening the need for the ambitious Copperstring 2.0 project to begin.
Copperstring wants to develop an 1100km high-voltage transmission line to connect the North West Minerals Province with the state electricity grid near Townsville.
Mica Creek Power Station manager Paul Smith said the facility would have needed a costly overhaul in order to supply energy beyond 2020.
“Mica Creek Power Station is unable to compete with more modern power stations in the region,” Mr Smith said.
But Mr Katter said the closure of the power station, which employs 34 people, could have more devastating impacts on the North West Minerals Province.
From January 1, the Diamantina Power Station will be the sole power source in the Mount Isa region.
Mr Katter said Diamantina was more efficient and could power the Mount Isa region on its own but, without competition, he fears power prices could climb astronomically and drive the mining companies out of the region.
But Mr Katter said the Copperstring 2.0 project would create the competition the region needed.
“The scary thing is … that without Copperstring, (industries) are paying 50 per cent more … and they can look forward to that going up higher and higher,” Mr Katter said.
He said it was now more important than ever that the State Government invest a further $15 million in the project, which is worth $1.5 billion.
Copperstring chairman John O’brien said the announcement that Mica Creek would close meant the need for Copperstring’s common-use energy infrastructure was now more important than ever.
He said an independent study had validated the importance of the minerals sector to North Queensland’s economic future, with in-ground resources worth an estimated $680 billion.
“The Townsville to Mount Isa industrial sector is a critical strategic and economic supply chain which now more than ever needs to be sustained and grown through major common-use infrastructure that clearly reduces costs, supports jobs and improves global competitiveness,” Mr O’brien said.
Energy Minister Dr Anthony Lynham said the State Government recognised the potential benefits of Copperstring 2.0.
“That is why the Palaszczuk Government has already contributed $1.18 million to the project development costs and is devoting significant resources of several departments to work closely with the proponent’s team of advisers,” he said. “I am advised that the Queensland Government has recently received a further funding request from the Copperstring proponent, and this is under consideration.”