The building of the processing facility could create up to 14 construction jobs, as well as eight new ongoing jobs in the local waste management sector.

Council said the overwhelmingly positive response to their community survey earlier this year asking residents whether they were interested in a kerbside residential yellow-top bin service was the impetus to move ahead with a MRF to complement kerbside collection already announced in this year's budget.

Mayor Danielle Slade said Council received almost 940 responses to the survey, with 97 percent of people indicating they would like a recycling service in Mount Isa.

"We are confident these results reflect the wider community's support for the establishment of a permanent recycling facility in Mount Isa," Cr Slade said.

"Initial plans were for us to have a one-year trial service, but with this funding from the Australian Government, we are incredibly fortunate to now be able to go ahead with the construction of the materials recovery facility and the rollout of a residential yellow-top bin service across Mount Isa to service this facility."

Cr Slade said Mount Isa has never had a recycling facility or yellow-top bins and this was a terrific shot in the arm for the community.

The materials recovery facility has the potential to divert 22,000 tonnes of waste, such as cardboard, glass, steel, aluminium, plastics, green waste, timber and concrete, from going into landfill each year.

This represents a saving of about $1.7 million in Waste Levy costs annually and could also potentially extend the life of the landfill by 80 years.

Council anticipates the MRF and kerbside yellow-top bin service will be up and running by end 2021.

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