Federal Member for Kennedy Bob Katter is ecstatic the federal government has committed to help kick start a vital transmission line between Mount Isa and Townsville.
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The government has promised $4.75m for the final engineering and development works of the Copperstring 2.0 Project.
Mr Katter said the project would lower electricity prices in the North West and connect Mount Isa to the national electricity grid.
Copperstring version 1.0 was looked at a decade ago but mothballed when Mount Isa Mines decided to invest in the new Diamantina Power station.
Mr Katter said the start of this project was long overdue as there was immense conventional and renewable energy resources in northern Queensland but the economics of electricity supply put the future of mining and minerals processing at risk, with most buyers paying nearly $200 megawatt hour for electricity via onerous take-or-pay contracts.
“Mining almost always is under threat. Metal markets plummet,” Mr Katter said.
“The economy of Northern Queensland depends upon sugarcane still, the fertiliser plant and the zinc refinery and copper refineries in Townsville.”
Mr Katter said these industries brought in around $4.5 billion every year and they employed up to 20,000 people directly or indirectly.
“The cost of electricity and gas are making it increasingly difficult for these giant industries to continue operating – the head offices are not Father Christmas, if it’s not making a profit you close it,” he said.
“The cost of electricity in Australia is now the highest in the world. Under the Qld Labor and Federal Liberal Govt privatisation and deregulation the price has soared 300%. The building of this transmission line needs to be started ASAP it is critical for the survival of these giant industries and the economy of North Queensland.”
Mr Katter said this was one of the most important announcements in the past 10 years. , “The S4.75m is not important, it’s a small amount of money - but it is a green light and the government’s blessing,” he said.
The transmission line project would integrate the North West Minerals Province into the Australian east-coast electricity grid and the National Electricity Market.
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