CopperString 2.0 secures major investment from international fund DIF

A major international financier involved in Brisbane’s Cross River Rail has backed in Queensland’s most significant power network project, in a coup for jobs and investor confidence for the North

CopperString director John O'Brien with Tony McGrady in Townsville.

A MAJOR international financier involved in Brisbane’s Cross River Rail has backed in Queensland’s most significant power network project, in a coup for jobs and investor confidence for the North.

The proponent of CopperString 2.0, a $1.5 billion transmission line that will connect the North West Minerals Province to the national grid, has secured equity funding from international infrastructure fund manager DIF.

DIF’s investment in CopperString, understood to be in the hundreds of millions, significantly boosts proponent CuString’s ability to secure the two more funding sources it needs; a loan, likely from the Northern Australia Infrastructure Facility, and power supply deals with mine operators.

The 1100km 275-kilovolt overhead high-voltage electricity transmission line from Woodstock to northwest Queensland is expected to support 400 full-time jobs for every year it operates.

CopperString executive chairman John O’Brien said the partnership was a “real testament” to the opportunities major infrastructure investors see in North Queensland.

“The CopperString project was born in Townsville from the local knowledge of the huge potential we see in the Mount Isa to Townsville corridor,” he said.

“We have world class mineral and clean energy resources and the industrial infrastructure to support growth in new investment and deliver thousands of jobs to our region over the coming decade.

“The missing link is access to the national grid to provide lower cost energy for our minerals processing and export supply chain; CopperString will deliver these lower prices.”

DIF, headquartered in the Netherlands, is part of the Pulse consortium that won the bid to build Brisbane’s Cross River Rail.

In exchange for funding development costs, including pre-construction engineering and design, DIF will become part-owners of CopperString 2.0 once it’s built.

Construction is expected to begin in late 2020 or early 2021 depending on the timelines of securing all necessary government approvals and commercial agreements.

DIF partner and Australasian head Marko Kremer said the project had “huge potential”.

“Developing the best electricity infrastructure to support new investment across the minerals and energy supply chain from Mount Isa to Townsville is the key to unlocking the region’s potential,” he said.

State Government owned powerline operator Powerlink also confirmed it had signed a non-binding agreement with CuString that could see it invest in the project.

“Powerlink is working with the developers of the project, however no firm investment decisions have been made at this early stage,” a spokeswoman said.

CuString is aiming to construct the project through capital raised 80 per cent through debt and 20 per cent through equity.

CopperString is currently in the due diligence phase with the NAIF, the last step before an investment decision is made.

The project has also received nearly $5 million in Federal Government funding and $1.18 million in State Government funding.

CopperString 2.0 is currently preparing its Environmental Impact Statement, which it will submit to the State Government by the second quarter of 2020.

Originally published as CopperString 2.0 secures major investment from international fund DIF