Get all your news in one place.
100’s of premium titles.
One app.
Start reading
ABC News
ABC News
National
By Hannah Walsh

Urannah Dam receives more than $480m from federal government ahead of final approval

The Urannah project has been talked about for decades. (Twitter)

The federal government has announced it will contribute $483 million towards building a dam in North Queensland.

The announcement comes more than 40 years after Urannah Dam, 80 kilometres north-west of Mackay, was identified as a potential water source that would unlock a significant amount of agricultural land.

But the money promised today is only 50 per cent of what is needed and the project has not received final approvals because the draft Environmental Impact Statement has not been assessed by the state government yet.

Dawson MP George Christensen hoped the state and private investors would contribute to the project.

"I'm sure that funding will turn up, whether it's through state government sources or private sources, or a combination of the two," he said.

"The proponents have told me that with this sort of commitment from government they are 100 per cent positive that the rest will happen."

David Evans, Warren Truss and George Christensen promoting a government funding package for new dam projects in Mackay back in 2015 (Facebook)

Cents on the dollar

Once completed the project would include a 980-gigalitre dam and 200km of pipeline that could allow producers to develop 20,000 hectares of land.

If approved, it would supply water for mining, industrial and urban use, and provide a secure water source into the future.

But the Mackay Conservation Group says tens of millions of dollars will be wasted if the project goes ahead.

An economic analysis released by the group last year found it was "most likely that for every $1 spent on the dam, only 75 cents of economic benefit would be returned".

Sarah Hanson-Young says the dam project is "economically crazy" and is really about supporting mining interests. (ABC News: Lincoln Rothall)

Greens environment spokesperson Sarah Hanson-Young said the proposal was about helping expand the coal mining industry in the Bowen Basin.

"It's not actually about helping water security for farms or towns," the Senator said.

"For those cleaning up their homes and wondering where they're going to live after these catastrophic floods, they must be feeling sick to their stomach that Barnaby Joyce has been let loose with this project.

Carl Walker supports the project but has some concerns about what it could mean for agriculture in the region. (ABC Rural: Courtney Wilson)

Water price fears

Mr Christensen said Urannah Dam could provide water security for farming.

But Bowen Gumlu Growers Association president Carl Walker was concerned the price of the water would be too high.

"I still think it's a great thing for growth in the rural industry, but the people that organise this need to get their head around the fact that although some people think we are just rich farmers, I can tell you now the margins haven't been there for a long time," he said.

"If you had to use [the water] 100 per cent, you couldn't afford it — you would go broke."

Mr Walker said a lot of growers were wondering how they were going to survive this year with "prices going up on everything".

The federal funding is only about half of what would be needed to complete the project. (Twitter)

Promise of jobs

The project is expected to create more than 1,200 jobs during construction and 650 ongoing positions.

Mr Christensen said it would "probably" double the agricultural employment in the region and potentially reduce the cost of power in Queensland.

"A pumped hydro facility evens things out and reduces the wholesale cost of power," Mr Christensen said.

Environment Minister Sussan Ley said there was no suggestion the project stepped out of the boundaries of national environment law.

"I will make no apology for wanting to have infrastructure projects that balance the needs of communities, the environment, industry and our future," she said.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.