Keswick island lease negotiations progress

Negotiations to take over the lease of picturesque Keswick Island could take months, the Department of Natural Resources and Mines has said.

Keswick Island. Picture: Cheryl Eagers

EXCLUSIVE: Negotiations to take over the lease of picturesque Keswick Island could take months, the Department of Natural Resources and Mines has said.

The department controls the conditions of the lease for the 530-hectare island, 34km off Mackay, and confirmed they met with the representatives of the prospective buyers and the current lessee, Edward Dawson-Damer, on May 28.

The representatives met to negotiate the conditions of the lease, which is set by DNRM.

"The transfer requires a thorough assessment process which usually takes several months to complete,” a Department of Natural Resources and Mines spokesman said.

It is understood the conditions of the new lease will depend on what activities the prospective buyers, believed to be Sydney-based Chinese investors, propose to undertake on Keswick Island.

The DNRM spokesman said the transfer of the lease would be authorised only when the department is satisfied.

During its marketing campaign, Colliers International agents touted the island as being a "unique property investment for luxury tourism developers and investors” and noted it had planning approval for a large-scale island development with unique zoning for mixed residential and tourism development, of up to 1000 dwellings, as well as a permit for a 180 berth marina.

About 12 people live on Keswick Island.

One told The Daily Mercury that people were feeling apprehensive.

"We are being left in the dark,” they said.

"We don't know what the new lessee's intentions are, or what activities they want to have here.”

Member for Mackay Julieanne Gilbert said it was good news negotiations were under way.

"It's going to be a fresh start for everyone,” she said.

"We can't rush these things because there's too much at stake here, it's an island owned by the people of Queensland.”

Originally published as Keswick island lease negotiations progress