Mr Katter said the canal would be an extension of the Albert River, which flows into the Gulf near Burketown.

"We're going to build a canal so you can get the iron ore and the phosphate out through the Gulf of Carpentaria," he said.

"Like every other country in the world does, we access via the cheapest form possible - a canal."

Cr Clarke praised Mr Katter as a "man of great vision", but said The North West Star's telephone call to her yesterday was the first she had heard of the project.

"We certainly haven't had a discussion about it," she said.

Cr Clarke said she hoped Mr Katter's announcement meant other infrastructure projects promised to the Burke Shire were also on the way.

"We've got a railway map here that was done up by the State Government in the 1800s that shows they were going to build a railway up to Burketown so hopefully that one's on its way too," she said.

"We were also going to get a telegraph line which we're expecting any day."

Cr Clarke said her council would prioritise reliable communications infrastructure over a large-scale canal project.

Mr Katter said the project would complement the planned CopperString line which would connect the North West to the national electricity grid.

"There are 33 projects all languishing because there's no way of getting the product out through the gulf, and they've got no way of getting any electricity in to operate the mines," he said.

Mr Katter said although not all of these projects would eventuate, he was confident about 20 would.

He also promised to create an ethanol industry, which he said would create up to 30,000 jobs in Queensland.

"It's not hard: NSW have done it, America, Canada, Brazil and most European countries have done it."