Key Queensland crossbencher Rob Katter says the state's outback economy is "dying" and the stalled Carmichael mega-mine is the best way to revive it.

The Mount Isa MP, who along with his Katter’s Australian Party colleague Shane Knuth and a handful of other crossbenchers hold the balance of power in state parliament, says a feeling of “despair” would deepen in places like Townsville if the $21 billion mine project is held up. “I’m not…