With more than 17,000 regional Queensland jobs at risk, Australia’s sovereign manufacturing capacity on the line, and national security in focus, the future of copper processing in North Queensland has become a matter of national significance – and once again, power pricing sits at the heart of the issue.
Townsville Enterprise CEO Claudia Brumme-Smith said all levels of Government must urgently prioritise saving the Mount Isa Copper Smelter and Townsville Copper Refinery, with both slated to potentially close.
“If these critical assets shut down, Queensland wouldn’t just lose an industry – we would lose a vital link in Australia’s sovereign manufacturing chain,” Ms Brumme-Smith said.
“We can’t underestimate the domino effect a closure of the smelter or refinery would have – not just on communities across North Queensland, but on the future of our nation.
“The copper is there, miners are ready to go, and global demand is outstripping supply; now is the time to unlock North Queensland’s copper future and safeguard this essential industry.”
Ms Brumme-Smith said the current energy market in the North West Minerals Province – controlled by a single gas supplier – was stifling industrial growth and putting critical infrastructure at risk.
“For 15 years, a single operator has maintained a monopoly over the region’s energy supply. There’s been no real reform, and our miners remain deeply concerned about energy affordability and reliability, that’s why CopperString is so critical,” she said.
“Right now, our copper miners are paying more than double the power costs of competitors in China, India and the United States, and they have no alternative providers to turn to.”
“Not only that – they’re forced to underwrite new energy infrastructure for every project, just like they do for rail and port access.
“Meanwhile, coal miners in the Bowen Basin pay 40 per cent less for power and aren’t required to fund infrastructure themselves.”
Ms Brumme-Smith said North West projects were being locked out of national energy reforms due to their lack of access to the National Electricity Market, which ends in Townsville.
“That means no access to the Federal Capacity Investment Scheme, no benefit from Rewiring the Nation, and no relief under the Safeguard Mechanism. Some miners are even relying on diesel to power nationally significant projects – it’s absurd. Our smelters and fertiliser manufacturers are facing extinctions because we can’t get affordable power out west,” she said.
Ms Brumme-Smith said energy affordability was the single biggest threat to the North West’s economic competitiveness, and that CopperString – which would connect the region to the National Electricity Market – must be fast-tracked.
“CopperString is a lifeline for North West industry – but time is running out for our smelter and our fertiliser manufacturer out here.
“We need Queensland Investment Corporation to prioritise power contracts with industrial customers west of Hughenden and provide certainty around construction timelines.”
Glen Connell, Executive General Manager of Harmony Gold – developer of the Eva Copper Mine near Cloncurry – said global markets were hungry for the minerals North Queensland has to offer.
Once operational, the Eva Project is expected to produce 55,000 to 60,000 tonnes of copper annually for at least 15 years, supporting 450 long-term jobs.
“Reliable, low-cost power is critical for any major investment,” Mr Connell said.
“CopperString is our preferred power solution for the Eva Project. In the meantime, we’re pursuing interim options to allow production to commence as soon as possible.”
