The powerline had been heralded as the biggest thrust to developing scores of potential resource and energy sector projects along the 1000 kilometre corridor.

Some of these projects involved the production of 'clean energy' from a 750-megawatt wind farm, and geothermal power generated from subterranean hot rocks which would have been uploaded into the State grid.

In what is seen by many as a snub by Xstrata to the greater North West development picture, the company has instead opted to sign a 17-year contract with the Diamantina Power Station consortium (2013-2030) with gas supply and pricing fixed until 2023.

Xstrata will also invest US$30 million (A$28m) over the next two years to support modifications to existing infrastructure to accommodate the integration of the new gas-fired Diamantina Power Station adjacent to the existing Mica Creek Power Station near Mount Isa.

Although Xstrata Copper North Queensland chief operating officer Steve de Kruijff said the contract underpinned Xstrata's ongoing investment in the region, the decision is viewed by many as purely financial and with little regard to the welfare of smaller communities along the line.

"Critically, Diamantina Power Station is able to guarantee new capacity and gas supply from 2013, providing continuity of supply as current energy contracts expire," Mr de Kruijff said.

This article appeared as part of North Queensland Register’s “Year in Review” feature.