North West Minerals Province at boom-or-bust crossroads, new modelling for Copperstring shows

The critical minerals export industry between Townsville and Mt Isa is at a boom-or-bust “crossroads”, new modelling shows.

THE critical minerals export industry between Townsville and Mount Isa is at a boom-or-bust “crossroads”, with new modelling showing an extra $1.3 billion could be pumped into the economy every year for the next three decades or thousands of jobs could be lost depending on what happens to electricity prices.

Modelling undertaken for the proponents behind CopperString 2.0, a $1.5 billion transmission line that will connect the highly valuable North West Minerals Province to the national electricity grid, shows electricity prices will need to fall to prevent mining companies from pulling out.

The North West Minerals Province, which contributes $6 billion to Queensland’s economy each year, is the only major resources economy in eastern Australia that is not connected to the national electricity grid, with the cost of power, at about three times higher than on the Australian east coast, causing a significant drag on investment.

A drop in electricity prices is particularly critical, with mining giant Glencore due to decide whether it will close its copper refinery in Townsville and smelter in Mount Isa in the middle of this year due to the unsustainable costs of power.

CopperString 2.0 director Joseph O’Brien said it is now “imperative” the State Government, which has been supportive of the transmission project, give its commitment to “strategic transmission infrastructure” through clear policy.

“CopperString is working positively and productively with the Queensland Government, however we need to turn their support into their commitment to drive industrial, agricultural and energy output across northern Queensland and make the ‘Powering North Queensland Plan’ to be the ‘Powering Northern Queensland’s Economy Plan’ through commitment to common user infrastructure for the benefit of all sectors of the economy,” he said.

“A great deal is at stake for Townsville and all of northern Queensland, with initial economic modelling undertaken for CopperString showing economic growth being $41 billion over 30 years higher if we can sustain the NWMP and Townsville minerals output and avoid a situation where we see little future investment.

“Of course, no one is going to invest while you have to pay three times more for your electricity than your competitors do.”

It comes as CopperString 2.0 is due to finalise “well advanced” long-term agreements with foundational customers and a number of new entrants, “in coming months”.

Originally published as North West Minerals Province at boom-or-bust crossroads, new modelling for Copperstring shows