The mine has been abandoned since the 1970s and made headlines when it was believed to have leaked aqua precipitate into the creeks at Chinda Station during the wet season.

China-controlled mining company Perilya recently began a feasibility report on the mine. Board members will vote whether to go ahead with the project when the results of the report are released at the end of the year.

It is a $9 million dollar investment Perilya's managing director Paul Arndt said he hoped would mean Mount Oxide could begin operation in two to three years.

The company has had an exploration permit on the site for several years and began drilling about three years ago.

"A decision has not been made on whether we will re-open the mine, but give that we're committing a large amount of funds to the project the hope is that we will mine at Mount Oxide," Mr Arndt said.

"Right now we're trying to get a better idea of what resource is there and then make an informed decision, but we're committing to this feasibility study on the proviso that it will go ahead in one form or another."

Mr Arndt said the $200 million project could create 120 jobs for the region and potentially bring more business to Mount Isa.

"Ideally we'd look at building a copper concentrator on the site and transport the concentrate to the coast or process it through the copper smelter in Mount Isa," he said.

He said Perilyla hoped to have talks with Xstrata about using its smelter, but it was early days yet.

The company was in the process of applying for several permits with the Federal Government environmental department and other departments to mine the land.

If the project was approved construction would begin next year.

Mount Oxide would initially be an open cut mine with the vision of going underground.