A previous 1961 strike at MIM was precipitated by legislation that threatened employees' contract bonuses.
The dispute erupted again in August 1964, when the State Industrial Conciliation and Arbitration Commission rejected a proposal for a weekly pay rise of £4 in lieu of an increase to the bonuses.
By 10 December, Premier Nicklin issued an order-in-council, demanding MIM employees return to contract work, and increasing police powers to enforce the matter.
[citation needed] Premier Nicklin declared another state of emergency on 27 January 1965, permitting police to cordon off Mount Isa, enter houses without warrant, and seize strike materials.
The dispute petered out through February and March, as enough miners returned to work to resume production.