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The Townsville Mayor says Xstrata's plan to expand operations in the north-west will add to the need for additional infrastructure in the north.
The mining giant has announced a $500 million investment to convert its Ernest Henry open-cut mine near Cloncurry into an underground operation.
Mayor Les Tyrell says the expansion will provide countless jobs in Townsville where product is able to be refined and sent through the port.
He says region will need better roads, rail and power infrastructure to cope.
"But I think too, the flow-on eventually that we will get, upgrades of the line and the powerline through there as well as the rail line, means that we'll have ongoing job opportunities well into the future," he said.
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