Deputy Premier Cameron confirms $1.2bn blowout to prized Copperstring project

Just weeks after the first sod turning of the mega Copperstring 2.0 project in Hughenden, Treasurer Cameron Dick has confirmed the cost has blown out by more than $1bn.

Minister for Resources Scott Stewart, Deputy Premier Cameron Dick and Copperstring's Tony McGrady at the official opening of the CopperString Experience Centre. Picture: Shae Beplate.

The government’s prized Copperstring transmission line project has blown out by $1.2 billion following skyrocketing material prices unforeseen by the Treasurer prior to the June budget.

Just weeks after the first sod turning for the project in Hughenden, Treasurer Cameron Dick on Thursday confirmed the once $5bn Copperstring 2.0 would now cost $6.2bn, with the additional billion dollars to be paid for through more government borrowings.

Mr Dick used the announcement to challenge the LNP’s commitment to Copperstring post-election, aiming to wedge Opposition Leader David Crisafulli on the project.

Deputy Premier and Treasurer Cameron Dick officially opened the CopperString Experience Centre in Townsville. Picture: Shae Beplate

“(He) has repeatedly said he won’t accept cost overruns on any infrastructure projects,” he said.

“If David Crisafulli will not borrow to build he’s got to walk away from Copperstring, that’s just the truth.

“Our government has signed off on an additional $1.2bn in funding ... if we are re elected in October.

“We’ll be borrowing additional funds to deliver that.”

But the Opposition Leader backed in the project, saying it was vital infrastructure for North Queensland.

“We are committed to delivering Copperstring,” he said.

“The project isn’t just viable, it’s essential.”

Copperstring 2.0 is Queensland’s most significant power network infrastructure project to date, resulting in a 1100km high-voltage electricity transmission line being erected from Townsville to Mount Isa – connecting the resource-rich North West Minerals Province to the national grid via Hughenden.

Copperstring 2.0, Queensland’s most significant power network project.

The $1.2bn blowout has been caused by skyrocketing transmission equipment prices, which Mr Dick claims has shot up by 25 per cent since he handed down the State Budget two months ago due to high global demand.

“As everyone who’s been to the supermarket or servo knows, prices keep going up, and the construction cost of major infrastructure projects, well, they’re no different,” he said.

The $1.2bn blowout will be covered through borrowings, which are already forecast to double to $128bn by 2027-28, with Mr Dick claiming he will balance the government’s books through his progressive coal tax.

“This is not money that was in the budget, because these cost increases have become known since I delivered the budget in June,” he said.

“The strength that our progressive coal taxes give to our budget by just taking a little bit more of those coal royalties.

“When we just take a little bit more of that, that strengthens our balance sheet, that allows us to borrow more.”

Cost blowouts have not affected the construction timelines, with works still on track for completion in 2029 and North Queensland communities powered by 2031.