The group building a new electricity station to power Mount Isa and Xstrata’s north-west Queensland mines says the project will be good for the environment.
The APA Group is building a new natural gas-fired electricity station to power both the city of Mount Isa and Xstrata’s copper and zinc mine.
Construction of the Diamantina Power Station at Mica Creek, south of the city, is underway, with the first power set to be delivered by early 2014.
AGL gas manager Michael Moraza says the project has created 115 construction jobs and will need 17 full-time local staff once it is up and running.
“This project is going to be supplied with natural gas - that has got greenhouse gas emission positives,” he said.
“This is a project that is going to use a lot of existing infrastructure.
“The gas pipelines that are going to supply the gas have been in the ground for 15 to 20 years - it will be the lowest emissions place in Australia.
“An emissions footprint of about 40 or 50 per cent below the prevailing national market on the east coast of Australia.”
He says the carbon tax was a factor in getting the project off the ground.
“The carbon pricing regime gives advantages if you can build a low-emission plant,” he said.
Mr Moraza says those advantages meant a competing plan to connect Mount Isa to the national electricity grid via Townsville, became unviable.
