Federal independent MP Bob Katter says the necessity of foreign workers is a lie used by mining companies looking to import cheap labour.
AAP reports Katter told Fairfax Radio Gina Rinehart's plans to use foreign workers were "absolutely outrageous" and industry-wide claims about the issue were "farcical".
Under the Government's enterprise migration agreement policy bulk foreign workers brought to Australia for mining projects must be paid Australian wages and receive the same working conditions.
According to AAP Katter said mining projects were already predominately foreign owned and companies should not use overseas workers when there were 300,000 Queenslanders looking for work.
"If the profits are going to go overseas and now the wages are going to go overseas, well what the hell do Australians get?" he said.
"We get no profit, we get no wages, we just get a big hole in the ground."
Against rising opposition to its plans Rinehart's Hancock Prospecting ran a roadshow last week to help advise local businesses on how they could win work on the Roy Hill iron ore project.
Sessions were held around WA, including Port Hedland, Newman, and Perth.