FREIGHT users of the Mount Isa Line are set to benefit form a new four-year, 10% subsidy on below-rail charges, the Queensland government has announced.
The Mount Isa Line running between Stuart and Mount Isa is crucial for keeping supply chains moving efficiently between the north-west Minerals Province and the Port of Townsville.
All users of the rail line are expected to save on costs, according to the statement.
Transport and Main Roads minister Brent Mickelberg said the four-year subsidy was about supporting industries by delivering practical and reliable support.
“By lowering rail transport costs, we’re making rail a more competitive option for industry, improving freight corridors and supporting growth across the north-west Minerals Province,” Mr Mickelberg said.
“We know transport costs can be a real pressure on industry in the north, and this subsidy will encourage a shift from road to rail, improving safety on our roads and strengthening long-term freight resilience.”
Under the new subsidy, a phosphate customer moving 0.5Mt per annum of minerals concentrates in a bulk operation between Cloncurry and Townville would save $2.80 per tonne. This would equate to $1.4 million per year and $5.6 million over four years.
The announcement came as the Queensland government bids for the United States’ Critical Minerals funding, starting with $300 million of projects including upgrades to the Mount Isa Rail Line.
Natural Resources and Mines minister Dale Last said the Mount Isa line was important to mobilise supplies used in heavy industries.
“Queensland’s resources are world-class, and demand is strong, with the Trump administration elevating phosphate to the United States’ List of Critical Minerals late last year,” Mr Last said.
“The Mount Isa Line is the backbone of the north-west economy, moving mineral concentrates, processed metals, fertilisers, phosphate rock and acid to export markets.”
The Mount Isa rail subsidy came in addition to the Queensland government’s capital investment into Glencore’s copper processing facilities in Mount Isa and Townsville, as well as approvals for Graphinex’s Esmeralda Graphite Project near Croydon.