State must support CopperString with $20m or it may not go ahead

It is important to establish the reliance of Townsville economy on the health of industry in the North West Minerals Province.

Estimates from mine data indicates around 20pc of mine workforces in the North West are Townsville-based. If you ask Townsville people they will say many more jobs rely on the NWMP.

The trend is for increasing proportions of FIFO in the NWMP, so that incrementally increases the dependence of Townsville jobs; the more mining development the more workers in Townsville.

I understand the Palaszczuk Government has verbally indicated its support for CopperString 2.0 and provided financial assistance, some quantified in monetary terms.

However this falls short of what is required to ensure this vital project goes ahead. Major mining and minerals processing businesses who rely on the project to support new investment have told me a $20 million state investment is required immediately otherwise the project may collapse and this rare opportunity will be lost.

This $20 million investment by the government would ensure a $1.5 billion private investment in real infrastructure in North Queensland, it would appear to most that the government should proceed.

This is not a review, or a feasibility study. This is an investment in infrastructure construction to support jobs in our traditional mining and processing industries.

It is important major mining and minerals processing businesses who support thousands of jobs in Townsville have indicated the long term future of their operations is at risk if the power price is not dealt with.

Think of how much it will cost to support those workers and their families, and think of the lost economic output if a major refinery in Townsville closes.

I have correspondence from a small mining operation in the NWMP region that states, with current reserves, they will generate $60m for the state in royalties. That is $60m revenue secured by the State Government if only the initial $20m investment to CopperString 2.0 is made. And that is one small mine of many potential new investments made with lower electricity prices.

Electricity cost reductions delivered by CopperString 2.0 that result in new mining investment could underpin more than $10 billion in economic output to Queensland and sustain more than 1,000 new jobs.

I can assure you from discussions with the main potential customers of the CopperString 2.0 Project that, without the promise of reducing energy pricing by at least 33pc, NWMP's future is grim.

Given how important the NWMP is to Townsville I feel strongly obligated to communicate this with the people of Townsville.

If the government fails to commit to the current initial funding gap of $20m in what I would only describe as poor leadership in enabling industry, it must be accountable for the inevitable outcomes.

The state or federal government could seek to assume project ownership now, taking it out of private hands, and assume their place as expected as lead proponents.

I understand that Powerlink, the state-owned electricity transmission provider, has rights to ownership of the CopperString project.

The State Government has demonstrated it is willing to support electricity infrastructure in North Queensland through its $130m subsidy to the Kidston Energy Project.

Kidston can be a beneficial project however the state should also support common-use infrastructure development that will see new investment in our traditional industries that employ thousands of people. CopperString 2.0 is just that.

I declare, for the record, my family relationship with the CopperString 2.0 Project proponents, the O'Brien family.

Robbie Katter

Member for Traeger