: News Article

NQ Water Budget Targets Industry

05/09/2002

Surety of water supply will help underwrite the industrial expansion of the twin cities for the next century said NQ Water Chairman, Ian Hamilton.

More than $85,000 has been set aside in this year’s budget to undertake planning for the duplication of the pipeline to the Haughton Channel, as a second source of water from the Burdekin Dam.

It will connect with the Mt Jack pipeline south west of Townsville and directly feed into the city’s mains. That’s an important feature, said Chairman Ian Hamilton.

"A loss of supply would be crippling to local industry. It would undermine confidence and damage the twin cities’ reputation as a great place to do business.

"Though the chances of anything happening are small, the Board recognises the risks and consequences are great so, this will cover all contingencies, including the loss of supply of ’Old Faithful’, Ross River Dam," said Mr Hamilton.

"The current Haughton pipeline empties into the back of Ross River Dam, so that’s not an option. The Mt Spec falls short of an adequate, long term back up system and as it supplies less than a third of the total daily consumption of 160ML.

"Industry operates best in predictable conditions and a third independent supply is needed to guarantee consistency."

A commitment to a third independent supply of water was an expression of confidence in the future of the region, said Mr Hamilton.

"Water facilitates industrial expansion. For example, NQ Water will supply the a base load power station which could consume as much as 20 ML a day, or just under a fifth of total daily consumption," he said.

"The decision will also work in favour of any decision on Sun Metals Stage two and the possible extension of the Yabulu Nickel Refinery."

Mr Hamilton said they estimate the new pipeline would cost around $40m and would take several years to build.

NQ Water continues to promote major industry in the region with on-going price subsidies to QNI and Sun Metals worth more than $466,000 this financial year.

© 2004 NQ Water