The Albanese Government and Crisafulli Government are investing up to AU$600 million over the next three years in Glencore’s (LSE:GLEN,OTC Pink:GLCNF) Mount Isa Copper Smelter and Townsville Refinery to protect over 1,000 jobs.
In a joint statement on Wednesday (October 8), Minister for Industry and Innovation and Minister for Science Tim Ayres and Queensland Minister for Natural Resources and Mines, Minister for Manufacturing and Minister for Regional and Rural Development Dale Last regarded the investment as a “support package.”
“(It) will alleviate immediate pressures on the facility and reinforce Australia’s position as a key global supplier of copper in an increasingly competitive market.”
According to the government, the Mount Isa Copper Smelter underpins thousands of jobs through North West Queensland’s interconnected industrial system and processing and refining supply chain.
Through the funding, more than 600 direct jobs and a further 500 jobs at the nearby Phosphate Hill facility will be saved.
Glencore spoke to the matter on the same day, saying that this investment recognises the Mount Isa copper smelter and Townsville copper refinery as “strategic national assets that underpin the copper supply chain across Queensland and the country’s critical minerals strategy.”
Mount Isa has been around for nearly 100 years, with the Queensland mine’s discovery dating back to January 1924. It is among the world’s largest mining complexes and Australia’s second-largest copper producer.
It can be recalled that Glencore first announced its intended closure of its copper smelter in October 2023, with an end-of-operations announcement made on July 29.
The company has been in discussions with the government for at least eight months and stated in its announcement that this agreement provides “a short-term lifeline for the copper smelter and refinery,” particularly since it has begun absorbing significant financial losses to maintain operations and jobs.
“We support the Australian and Queensland Governments’ push to develop policies which enable critical metals processing to continue in Australia, backed by a mining sector that makes a significant contribution to the economy and supported by affordable and reliable energy,” said Glencore Metals Australia Interim Chief Operating Officer Troy Wilson, thanking the government.
He also underlined copper’s current role in the global transition, describing it as a critical metal for the future.
“Competition in the global copper smelting market is fierce and it’s not a level playing field with various countries seeking to secure substantial market positions.”
Last ended the announcement by saying that at the forefront of the deal are the boiler makers, the diesel fitters, the technicians and the contractors “who make these facilities tick.”
“This deal is about standing with them, because we back Mount Isa, we back our metals processing sector and we back the hard-working Queenslanders who keep our economy strong.”
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
