Despite the fact that Mr Katter did not back Labor to form government after the 2010 election, Prime Minister Julia Gillard still promised him up to $335 million for the project, providing major north Queensland energy customers chose to use it.

But last October Xstrata chose a rival consortium to power its Mount Isa operations and in December the Queensland government-owned Ergon Energy also entered a power purchase agreement with a rival.

Mr Katter yesterday met with Treasurer Wayne Swan on the issue, and has been reassured the ''door was not closed'' on the money.

''It is still reserved in the budget,'' he said.

Mr Katter is hoping his Australian Party will win enough influence in next month's Queensland election to resurrect the plan, and wields influence in Canberra because he has hinted he could support a government led by Kevin Rudd.

Mr Katter's brother-in-law is a key player in CopperString, which is planning to build the $1.5 billion transmission link between Townsville and Mount Isa. CopperString is half-owned by construction contractor Leighton and development company CuString, which is 95 per cent owned by John O'Brien, who is married to Mr Katter's sister Geraldine.

The remaining 5 per cent is held by Mr O'Brien's son Joseph - Bob Katter's nephew.

A spokesman for Mr Swan said the government's ''commitment to securing North Queensland's energy supply remains a priority ? that's why we have been working with the Queensland Government, the CopperString consortium and other parties to open up these opportunities.''

The mid-year economic and fiscal outlook, published last year, said CopperString would receive up to $25 million in 2013-14, $50 million in 2014-15, $55 million in 2015-16 and another $55 million in 2016-17, with another $150 million available after that ''if the project takes longer than necessary to achieve market load growth''.