Newsroom

July 2, 2025

KENNEDY MP Bob Katter has applauded the news that the Albanese Government has taken serious steps to see a gas reservation policy (RRP) on the east coast of Australia, but issued a stark warning that the detail of the plan will determine whether Mount Isa and North West Minerals Province survive or collapse.

"A devil is often in the detail – and we haven't seen that yet with this proposed review into the East Coast Gas Reservation scheme. While this announcement appears to be very positive, it may change, and my position may change on it," Mr Katter said.Mr Katter warned the energy crisis facing Mount Isa was "absolutely critical", and said the town is not connected to the national electricity grid and relies entirely on gas for electricity, chemical production and industry operations.

"The copper smelter, the copper operations, the dozen copper mines, the silver-lead-zinc plant, make Mount Isa the third biggest industrial centre in this country, just behind Newcastle and Gladstone," he said.

"The complete collapse of Mount Isa's industrial base was imminent last week. The dominoes were already falling. Mount Isa pulls 3,000 jobs directly out of Townsville and fuels billions in industrial exports. If it goes under, it's not just a local issue – it's a national one."

Mr Katter said he sent a blunt letter to both the Prime Minister and the Queensland Premier, warning that, without action on a gas reservation policy, they would be remembered as presiding over the industrial destruction of the region.

"We are paying up to $16.60 for a unit of gas in Mount Isa, while the Americans and Russians are paying $5 US. It's impossible to survive or compete under those conditions. Give us RRP and we go forward. Deny us, and there will be a collapse."

Mr Katter said he had received no response from the Queensland Premier, despite personal representations by state MP Robbie Katter, but acknowledged that Prime Minister Anthony Albanese has taken direct action by including new gas from the Northern Territory, including the Beetaloo Basin, in the policy.

"I know a lot of people won't like this, but for all the PM's shortcomings, he acted. He will also finish the great inland highway through Hughenden this year, which cuts 18,000km off the round trip for 15% of Australia's fruit and veg.

"The Queensland Government hasn't even had the courtesy to reply."

Mr Katter compared the situation to Western Australia, where a long-standing gas reservation policy is helping power the construction of a giant fertiliser plant.

"Here, we've got a fertiliser plant in Mount Isa that alone can bring in a thousand million dollars in a good year. And we're hanging by a thread."

He also pointed to the still-delayed CopperString transmission line project as another example of state government inaction.

"After two and a half years, there's not a single pylon up on CopperString. Not even an order in for the copper wire. When I built the powerline from Normanton to Cairns, it took me three years. That's how long they've spent twiddling their thumbs."