The Queensland government has decided not to proceed with the Mount Rawdon pumped hydro project, a renewable energy initiative planned for the site of an existing gold mine near Mount Perry, 75 kilometers south-west of Bundaberg. The project was initially included in the government's Energy Roadmap, with $50 million allocated in the previous year's budget for its acquisition.
A Strategic Pivot
The state’s decision follows a six-month review conducted by the Queensland Investment Corporation (QIC), which determined the project is not a current priority.
The government is instead prioritizing the Borumba Pumped Hydro Energy Storage project, which has already received $324.3 million for early works this financial year. While both projects share a capacity of 2,000 megawatts, their projected costs differ sharply: Mount Rawdon was estimated at $6 billion, compared to Borumba’s $18.4 billion price tag.
Industry Reaction
Evolution Mining Chairman Jake Klein expressed surprise and disappointment at the announcement. The company is now assessing private capital opportunities for the project or considering continuing to mine low-grade stockpiles at the site until September.
"We were surprised by the decision, given the project's existing infrastructure and grid proximity," Klein stated. "We are now exploring all options, including private sector funding."
A QIC spokesperson confirmed that the assessment findings remain confidential and that the organization is currently debriefing proponents.
Broader Context
The budget also noted progress on investigations into the 750-megawatt Capricornia pumped hydro project near Mackay. Mount Rawdon’s existing mine infrastructure and proximity to the grid were cited as advantages, but ultimately the project was not prioritized over Borumba.