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Mining magnate Gina Rinehart has proposed that Queensland offer some of its sparsely populated islands to Elon Musk for satellite launches and microchip manufacturing, a suggestion that has sparked a mix of enthusiasm and caution among local tourism and business groups.

Speaking at the National Bush Summit in Townsville on Thursday—an event organized by News Corp and sponsored by Rinehart's company, Hancock Prospecting—Rinehart suggested North Queensland could become an "economic powerhouse" by attracting high-tech industries.

"What industries should we try to attract? Well, what about the world's best microchips?" Rinehart said, according to ABC Australia. "What about Elon Musk's communication satellites? What about defence manufacturing to protect our people and critical infrastructure?"

Coverage comparison

The proposal was covered by ABC Australia in two separate reports, each emphasizing different aspects. One report focused on the mixed reaction from local stakeholders, particularly environmental concerns raised by tourism officials. The other highlighted the economic opportunities, framing Rinehart's suggestion as a potential boost for defense manufacturing and technological development.

Both reports noted Rinehart shared the stage with One Nation leader Pauline Hanson at the summit, which also drew Queensland Premier David Crisafulli.

Key claims

  • Rinehart suggested offering "sparsely or non-populated" islands off North Queensland's coast to Elon Musk "at no cost" for SpaceX satellite construction and launches, as well as for microchip manufacturing.
  • Tourism Whitsundays CEO Tim Booth expressed environmental concerns, telling ABC that the region's "number one selling point" is its "natural splendour," and that "disturbing something like that for commercial gain seems like something that would be a little bit out of kilter."
  • Booth acknowledged that rocket launches could become a tourist attraction, noting that launch windows "draw a lot of visitors and they have a good length of stay."
  • The Whitsunday region has prior experience with rocket launches: Australian-owned Gilmour Space Technologies launched its first rocket from Bowen in July 2025, according to ABC.
  • Rinehart also suggested offering free land near Townsville to the Israeli military for developing and building advanced war drones, drawing on the city's history as a World War II navy base.
  • Rinehart criticized a proposal to build wind towers near the town of Prairie, though details of that critique were not fully reported.
  • Rinehart's company, Hancock Prospecting, abandoned plans to redevelop Woppa-Great Keppel Island in 2022, a fact noted in the context of her island proposal.
  • Elon Musk recently became the world's first trillionaire after SpaceX debuted on the Nasdaq exchange, a claim reported by ABC.

Perspectives

Economic opportunity advocates, including Gina Rinehart, view the proposal as a chance to transform North Queensland into a hub for advanced manufacturing, satellite technology, and defense industries. Musk's SpaceX is reportedly in need of expansion sites, and Rinehart argued that offering land at no cost could attract his operations to an allied country.

Tourism and environmental stakeholders, such as Tim Booth, emphasize the ecological and reputational risks of developing pristine islands. Booth noted that uninhabited islands are not "idle and useless," and that the region's tourism industry depends on preserving natural environments. However, he did not dismiss the idea outright, acknowledging potential tourism benefits from rocket launches.

Critics of the broader proposal may point to the precedent of Hancock Prospecting's abandoned redevelopment plans for Woppa-Great Keppel Island, which could raise questions about feasibility and long-term commitment. Additionally, the suggestion to offer land to the Israeli military could be controversial, though no direct opposition was reported.

Local business groups have not yet issued a unified response, with reactions reportedly mixed. The full spectrum of stakeholder views remains to be seen as the proposal gains wider attention.

This article was compiled from reports by ABC Australia. Rinehart's full remarks and the complete responses from all stakeholders were not available in the cited coverage.