The announcement, that was made on December 17, confirmed APA reached a Final Investment Decision (FID) to build stage two, taking the total investment of both stages to approximately $150 million.

To be able to continue to provide energy solutions that support the North West Minerals Province with affordable and renewable electricity is pleasing, according to APA CEO and Managing Director Rob Wheals.

"We have worked closely with MIM to ensure we meet their needs as a valued customer, so they can in turn continue to grow and support the Mount Isa economy and minerals rich North West Minerals Province," Mr Wheals said.

"This investment will support APA's vision for a world-leading hybrid energy grid in Mount Isa and our aspiration to support the further increase of renewable energy penetration for the region.

"We now have two major APA customers supporting both stages of the 88 megawatt Mica Creek Solar Farm with agreements to supply renewable electricity to their Mount Isa operations, demonstrating the enthusiasm of customers in the region for integrated energy solutions that can both meet their energy needs and help reduce their operational emissions.

"With supply of renewable energy for the two initial stages now under contract, APA is investigating a potential expansion for a third stage, following strong interest from customers.

"As always, we will continue to work with our customers to support their requirements, consistent with APA's purpose to strengthen communities through responsible energy."

Deputy Premier and Minister for State Development Steven Miles said the speed of the expansion demonstrated the demand from business and industry for renewable energy.

"APA has a long-term, 32 year lease with the Queensland Government for a 198 hectare site in the North West Minerals Province for stage 1 and stage 2 of the solar farm," Mr Miles said.

"This project will also provide a boost to employment and the local economy, employing around 300 people during peak construction.

"Queensland is leading the way as we move closer to our target of achieving 50 per cent renewable energy by 2030."

APA will support MIM with its energy needs with the provision of firming gas power from its Diamantina Power Station complex (DPS).

The development of the Mica Creek Solar Farm will reduce the emissions intensity from APA's entire Mount Isa generation fleet even further, taking it well below the Australian average.

"APA's vision for a world-leading hybrid energy grid in Mount Isa can provide the region with affordable, reliable and renewable energy which is in contrast with other proposals for the region," APA Group Executive Strategy and Commercial Julian Peck said.

"Importantly, our aspiration to support further expansion of renewable energy generation can be delivered without government subsidies."

The second stage of the solar farm is co-located on the same site as stage one near APA's Diamantina Power Station Complex on land which is leased from the Queensland Government.

The Mica Creek Solar Farm is expected to be operational by mid CY23.

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