The Queensland Government has decided not to proceed with the proposed Mt Rawdon Pumped Hydro Project, instead prioritising investment in the $18.4 billion Borumba Pumped Hydro Energy Storage project. The decision leaves Evolution Mining considering private funding or extending mining operations at the site.
The decision marks a major shift in Queensland’s renewable energy strategy, with the government focusing its investment on fewer large-scale pumped hydro developments.
Why Did Queensland Cancel the Mt Rawdon Pumped Hydro Project?
The Queensland Government cancelled the Mt Rawdon Pumped Hydro Project to focus funding and resources on the larger Borumba Pumped Hydro Energy Storage project.
According to Jake Klein, chairman of Evolution Mining, the state has signaled that Borumba is now the primary priority for hydro investment.
Queensland Hydro is expected to invest $324.3 million in early works for Borumba during the current financial year, as part of a staggering $18.4 billion total projected cost.
Like the Mt Rawdon proposal, the Borumba facility is also designed to provide 2,000 megawatts of power. However, the infrastructure requirements are vast; the plan involves the creation of seven dams within the Mary River system, including an upper reservoir that would be 1.5 times the size of the current Borumba Dam.
The government’s decision to prioritize Borumba suggests a preference for a specific geographic energy corridor over the more isolated Mt Rawdon site.
Mt Rawdon vs Borumba Pumped Hydro Projects
| Feature | Mt Rawdon | Borumba |
|---|---|---|
| Capacity | 2,000 MW | 2,000 MW |
| Estimated Cost | $6 billion | $18.4 billion |
| Status | Cancelled | Proceeding |
| Developer | Evolution Mining proposal | Queensland Hydro |
| Key Challenge | 27 km from the electricity grid | Large-scale dam construction |
What Was the Mt Rawdon Pumped Hydro Project?
The Mt Rawdon Pumped Hydro Project was a proposed 2,000-megawatt renewable energy storage facility under Queensland Government’s Energy Roadmap that aimed to convert Evolution Mining’s former gold mine near Mount Perry into a pumped hydro power station capable of supplying electricity to around two million homes.
By utilizing the mine’s steep topography, the project intended to move water between two reservoirs—one at the top of a hill and one at the bottom—generating significant electricity over a short distance.
The scale of the project was ambitious, with the capacity to power up to 2 million homes. While the use of an existing mine site would have reduced some initial land-clearing impacts, the project faced substantial logistical hurdles, including its location 27 kilometres away from the existing energy grid.
An estimated $6 billion investment would have been required to bring the facility to fruition. Last year, the government had allocated $50 million in the budget specifically for the acquisition of the project, signaling a high level of initial interest before the recent change in direction.
What Does the Mt Rawdon Project Cancellation Mean for Evolution Mining?
The news has come as a blow to Evolution Mining, the current operator of the gold mine. Mr. Klein expressed disappointment and surprise, noting that the Queensland Investment Corporation (QIC) had conducted an extensive six-month review of the site’s viability before the government reached its conclusion.
The QIC was tasked with assessing several delivery options, including the Mt Rawdon, Big-T (north of Toowoomba), and Capricornia hydro projects.
With the state’s support withdrawn, Evolution Mining is now reassessing its options. The company is currently processing low-grade stockpiles at the site, a process expected to conclude in September. Following this, the company will explore two primary paths:
- Private Capital: Seeking interest from private investors who may be willing to fund the pumped hydro transition without government backing.
- Mining Viability: Re-evaluating whether the site remains viable for continued gold mining operations.
What Happens Next for Queensland’s Pumped Hydro Projects?
While the Mt Rawdon project is no longer a government priority, the state’s appetite for pumped hydro remains high.
The QIC’s ongoing assessments indicate that other projects are still under consideration. Specifically, investigations will progress into the 750-megawatt Capricornia pumped hydro project located near Mackay.
This suggests that while the government is being more selective about which “mega-projects” it funds, the overall goal of transitioning to a renewable-heavy grid remains intact.
The shift highlights the complex balancing act between environmental rehabilitation, grid connectivity, and capital expenditure.
The 27km gap between Mt Rawdon and the energy grid likely played a role in the government’s decision, as the cost of transmission infrastructure often becomes a deciding factor in the viability of renewable energy sites.
Conclusion
While the Mt Rawdon Pumped Hydro Project will not proceed under Queensland Government ownership, the site’s future remains uncertain. Evolution Mining’s next steps, along with ongoing assessments of other pumped hydro projects, will shape Queensland’s renewable energy strategy in the years ahead.
Frequently Asked Questions
What was the Mt Rawdon pumped hydro project?
The Mt Rawdon project was a proposed 2,000-megawatt renewable energy facility that would have converted a gold mine near Mount Perry into a pumped hydro storage system, capable of powering approximately 2 million homes.
Why did the Queensland government cancel the project?
The government decided to prioritize the Borumba Pumped Hydro Energy Storage project instead. Financial resources and strategic focus have been shifted toward Borumba, which is seen as a higher priority for the state’s energy roadmap.
What happens to the Mt Rawdon gold mine now?
Evolution Mining is currently assessing whether to seek private investment to continue the hydro project independently or to determine if the site is still viable for gold mining operations after stockpiles are processed in September.
How does Borumba compare to the Mt Rawdon project?
Both projects aimed for a 2,000-megawatt capacity. However, Borumba is a significantly larger investment at $18.4 billion (compared to $6 billion for Mt Rawdon) and involves the construction of seven dams on the Mary River system.
Are there other hydro projects still being considered in Queensland?
Yes, the government is continuing to investigate other options, including the 750-megawatt Capricornia pumped hydro project near Mackay and the Big-T project north of Toowoomba.
News Sources – ABC News
