Federal and Queensland governments bail out Mt Isa copper smelter

The federal and Queensland governments have announced they will invest up to $600 million over the next three years in Glencore’s financially struggling Mount Isa Copper Smelter and Townsville Refinery — protecting more than 600 direct jobs and a further 500 jobs at the nearby Phosphate Hill facility.

The governments say the support package will alleviate immediate pressures on the facility and reinforce Australia’s position as a key global supplier of copper in an increasingly competitive market. Funding will be provided in three payments of up to $200 million over the next three years, contingent on the completion of a transformation study, alongside other review points.

The transformation study will focus on driving sustainable and long-term industrial capability in Mount Isa. It will evaluate the end-to-end copper value chain in the region and seek to understand the long-term opportunity for the facilities, industry and Mount Isa workers beyond the support period, positioning the region for a more diverse and resilient future.

Both governments have now signed a Heads of Agreement with Glencore, giving certainty to workers, local communities and the businesses that rely on the Mount Isa operation.

The continued operation of the Mount Isa Copper Smelter supports the Commonwealth’s commitment to strengthening strategic supply chains and delivering a Future Made in Australia, and the Queensland Government’s Transforming Queensland Manufacturing Strategy.

The Mount Isa Copper Smelter provides half of Australia’s copper smelting capacity. Maintaining Australia’s domestic minerals and metals processing capability is fundamental to our economic resilience, at a time where global production is becoming increasingly concentrated in a single market.

“This funding will protect Mount Isa’s workforce and regional Queensland industries, while reinforcing the need to deliver good skilled jobs to deliver a Future Made in Australia,” said Tim Ayres, Australian Minister for Industry and Innovation. “Copper is critical to building solar panels, wind turbines and energy storage systems. This investment strengthens our supply chains and supports Australia’s transition to net zero.

“If Australia didn’t already have established facilities like the Mount Isa Copper Smelter, we’d be looking to build them to protect Australia’s industrial capability, and strengthen the capability needed for future.”

“Glencore has a crucial role to play in the future of the smelter and an obligation to the community and their workers, and the government has high expectations that they will continue to collaborate effectively,” he added.

“The Mount Isa copper smelter and Townsville copper refinery are cornerstones of our economy that support not only 600 direct jobs, but thousands of jobs across the regional supply chain including the Phosphate Hill fertiliser plant,” said Dale Last, Queensland Minister for Natural Resources and Mines. “We’ve worked tirelessly to deliver a result that is financially responsible, delivers value for taxpayers, holds Glencore to account and most importantly, gives certainty to families and supports Mount Isa’s future.

“This joint package is an injection of confidence in Queensland’s copper supply chain, from the contractors and suppliers in Mount Isa, the workers at Phosphate Hill, to the emerging copper projects north of Cloncurry and the port workers in Townsville.”

Image credit: iStock.com/swissmediavision