Xstrata Decision Leaves Hole in Massive Power Project

A multi-billion dollar power project in Queensland's north-west is in doubt after a mining giant decided to source gas and electricity elsewhere.

The mining company Xstrata has now decided to source energy for its operations in the region elsewhere.

CopperString Director Joseph O'Brien says Xstrata's involvement was a major component of the project.

"It makes it fundamentally difficult to see the feasibility of the line going ahead at the moment," Mr O'Brien said.

"The project was very well advanced so this is a fundamental challenge.

"It certainly draws into question the feasibility of the project so we will just sit down in the coming days and assess that and make a decision from there."

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ABC News