The former federal resources minister Ian Macfarlane said industry representatives began discussions with the state government to find economical ways of extending local operations beyond seven years. 

“It does require the government to look at this as an investment proposition,” Mr Macfarlane said after touring the Mount Isa Mine site on Tuesday. “If they impose the normal system of royalties on the mines then the chances are the mine won’t go ahead. 

“If they take a more balanced approach and allow the company to get the mine up and going before they impose royalties, then the Queensland government and people will receive money they won’t receive if the mine simply shuts down.” 

He later clarified he was not referring to a new mine pit. 

Mr Macfarlane targeted environmental advocates by saying they needed to be held responsible for “frivolous court action”. 

“If they want to use the process as a genuine right of appeal then we are all for that but where they abuse the system where they deliberately try to slow down applications, they have the potential to ensure that Mount Isa closes down in 2023.” 

He said the mining industry had a positive impact on unemployment rates overall but linked a decline in construction jobs during mining downturns. “Obviously the number of people working in the mines can decline but think about what it would be like if there were no mines at all. The 20,000 people in Mount Isa who rely on the mine as part of their income or as part of their business would see a complete change in their life.” 

Mount Isa State MP Rob Katter said the region supplies $2 billion to the state economy, and $300 million a year in royalties. “There must be a platform of policies which open up the industry to development. If there are correct government policies in place, I’m sure we will see mines prospering and new mines popping up.” 

Mr Katter said issues such as a special economic zone and a gas reserve policy were critical to the industry’s growth.