The Queensland Government has revealed a series of initiatives to drive growth and investment across the state’s mining and freight sectors, particularly in the north-west region.
The first plan is to unveil an incentive package to reduce access charges on the Mt Isa rail line.
The package, to be facilitated by Queensland Rail, is expected to provide significant savings for emerging rock phosphate producers while increasing freight volumes and supporting new entrants in the market.
“We want to see mines opening, not closing,” Queensland Natural Resources and Mines Minister Dale Last said.
“That’s why we’re incentivising phosphate on the Mount Isa rail line, to take the pressure off new and existing rock phosphate rail users while they develop their operations.
“Global demand for phosphate is strong, and north-west Queensland is well positioned to benefit. We’re taking action to ensure emerging producers get the support they need to scale up.”
AMEC chief executive officer (CEO) Warren Pearce welcomed the announcement, describing it as “a sensible step to increase exports and incentivise expansion of this important commodity”.
Another initiative is the Queensland Government’s new deal with Glencore, which will allow third parties to access copper tailings from its Mt Isa Mines site.
The commitment is set to help innovate tailings reprocessing as the Mt Isa underground copper mine closes its doors in July.
Glencore is assessing the future of its Mt Isa copper smelter and Townsville copper refinery amid challenging global market conditions. It is also progressing its Black Star open-cut project, with feasibility studies underway.
“The number one issue on my desk is the future of the Mount Isa copper smelter,” Last said.
“I’ve met with Glencore CEO Gary Nagle twice since we formed government, and I’ve held numerous other discussions to keep the smelter’s future on the agenda.
“The (Queensland) Government is doing all it can to ensure its continued operations. As part of our negotiations, Glencore has agreed to allow third-party access to the copper tailings at the Mount Isa site, opening up new processing opportunities and value-add potential.
“This is a significant boost for local workers, contractors and suppliers right across the supply chain.”
Pearce said the agreement with Glencore is “proactive” and “should be commended for facilitating the opportunity for innovation”.
“The types of companies that are innovative enough to tackle these opportunities are usually small and nimble, so allowing third parties to do testing on large tailings opportunities is a huge step forward,” Pearce said.
Harmony Gold’s Eva copper project will also see a helping hand, with the Queensland Government’s newly formed Resources Cabinet Committee to aid the delivery of any outstanding approvals or information required to move the project toward construction.
“We’re also cutting red tape, backing investment, and creating the conditions for long-term jobs in the north-west,” Last said.
“This is particularly important as Eva Copper reaches its key financial decisions.”
Pearce said progressing Eva – an iron oxide copper-gold resource thought to become the largest copper mine in north-west Queensland – is a welcome move, “considering the challenges of getting greenfield resource projects approved” in the state.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.