The Queensland Government has announced a new 10 per cent subsidy on below-rail access charges for users of the Mount Isa Line.  

The government said the four-year subsidy will reduce freight costs to unlock growth in the North West Minerals Province and protect skilled regional jobs.  

The Mount Isa Line is a strategic freight corridor stretching over 1000 kilometres that connects one of the richest mineral provinces in Australia to the Port of Townsville.  

As an example of cost reductions under the new subsidy, a customer moving 0.5 million tonnes per annum of minerals concentrates in a bulk operation between Cloncurry and Townville would save $2.80 per tonne, or approximately $1.4 million per year and $5.6 million over four years.   

Minister for Transport and Main Roads Brent Mickelberg said the four-year subsidy is about “backing the industries that keep the state moving”.  

“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,” he 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.” 

The announcement comes as Queensland prepares its bid for the United States’ Critical Minerals funding, with a starting package of $300 million of projects for investment in Queensland, including upgrading the Mount Isa Rail Line. 

With the Trump administration adding phosphate to the United States’ List of Critical Minerals last year, Minister for Natural Resources and Mines Dale Last said international demand for Queensland’s resources is strong.

“To meet that demand, we need to get our resources to the coast, and that’s where the Crisafulli Government’s Mount Isa Rail Subsidy kicks in,” he 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. 

“This investment is a key part of our plan for Queensland’s future that puts our state at the centre of the world’s appetite for critical minerals.”