Economy hangs on Isa power

NEWS of the imminent closure of a Mount Isa power station should ring alarm bells for the Townsville economy.

The 218MW gas-fired Mica Creek

Power Station, which supplies two mining customers in the Mount Isa area, will go into cold storage and remove a muchneeded bargaining chip for the mineral sector at the end of the year.

Originally a coal-fired power station, Mica Creek was converted to gas in 2017 but will not be financially viable after the loss of two major customers.

The problem, once the station closes, is the loss of competition, something Traeger MP Robbie Katter says will have devastating effects on the North West Minerals Province.

He says from January 1, the Diamantina Power Station will be the sole power source in the Mount Isa region.

Mr Katter fears that, without competition, power prices will climb astronomically and drive mining companies out of the region.

Power is one of the main costs for mining companies and if power prices become too high then job-creating mines will just shut down. So what’s that got to do with Townsville?

Mt Isa – and its mining resources – is one of the main drivers of our economy, creating thousands of jobs.

Cheap power is key to getting companies to stay in the region; the longer they are profitable, the more jobs they will create.

With the country just coming out of the COVID-19 crisis, jobs in North Queensland are more important than ever.

Mr Katter is backing the Copperstring 2.0 project, a $1.5 billion transmission line connecting Mount Isa industrial power users to the state grid.

He says it would create the competition the region needs and cut power costs by up to 50 per cent.

And with an estimated $680 billion in in-ground resources in the area, it’s something that needs to taken seriously by government.

It could be the game-changer we need.