Miner powers up

MINING group Xstrata is proposing to develop a 30 megawatt gas-fired power station to secure a reliable energy supply for its expanding Mount Isa operations.However the company warned yesterday the power station, to be developed on a Mount Isa mining lease, would not address the long-term energy needs for the North West Minerals Province.
Xstrata Copper's North Queensland chief operating officer Barry Grant said yesterday a number of mining development options had been dismissed in the region because they could not get access to reliable low-cost energy.
"If people can come up with solutions, who knows how many other options like refineries that may look to be based in the northwest," Mr Grant said, adding that Xstrata's copper and zinc operations at Mount Isa were due to undergo major expansions over the next 18 months.
He said it was critical that energy infrastructure was in place to meet these immediate needs.
"While this power station will complement longer-term energy strategies, stakeholders must continue to work together to develop real solutions to the long-term energy shortfall which could prevent the region from achieving its full potential," he said.
Mr Grant said the energy generated by the 30 megawatt Xstrata Power Station would provide a reliable and cost effective source of power to supplement the Mica Creek power station run by CS Energy.
The station is to be fuelled by natural gas piped north from southwest Queensland in the Carpentaria pipeline.
It is to be built at the southern end of Xstrata's X41 mining lease in Mount Isa. Once operational, the plant will be one of the most energy-efficient power stations operating in Australia.
"Xstrata plans to be in Mount Isa for the long term, and the Xstrata Power Station will help to ensure a sustainable future," Mr Grant said.
Xstrata is currently seeking relevant approvals for the power station from the Queensland Department of Mines and Energy and the Environmental Protection Agency.
Subject to State Government approvals, construction is expected to start in January 2007, with the power station fully operational by October.